Buying a Home in Arizona in 2025? Avoid These 3 Costly Mistakes

Are you thinking about buying a home in Arizona this year? Whether you’re planning to move to Phoenix, Scottsdale, Tucson, or one of Arizona’s many fast-growing suburbs, it’s an exciting time to enter the market but it’s also important to be financially prepared.

Before you start house, hunting or meet with a lender, here are three common (and costly) mistakes to avoid so you can increase your chances of getting approved and locking in the best deal possible:

1. Taking on New Debt

Tempted to finance that new car, upgrade your furniture, or open a new credit card? Hit pause. Taking on new debt right before applying for a mortgage can damage your debt-to-income ratio, which lenders use to evaluate your ability to repay a loan. Keep your credit score high and avoid large purchases until after your home closes.

📌 Arizona Tip: In competitive markets like Gilbert or Chandler, having strong credit can make your offer more attractive to sellers especially if you’re up against multiple bids.

2. Switching Jobs

Stability matters. Most lenders want to see at least two years of consistent employment in the same field. Changing jobs especially if you shift industries or go from W-2 to 1099 income can raise red flags and delay or even derail your home loan approval.

If a job switch is unavoidable, try to stay in the same industry and keep thorough documentation of income.

📌 Arizona Insight: Tech, healthcare, and finance are booming here. If you're transitioning between companies in these sectors, make sure your new role doesn’t complicate your pre-approval.

3. Overwriting Off Business Expenses

Self-employed Arizonans this one’s for you. If you’re a freelancer, small business owner, or work as a 1099 contractor, be careful not to over-deduct on your tax returns. Lenders look at taxable income, not gross revenue. Too many write-offs can make it look like you earn far less than you do, limiting your borrowing power.

📌 Pro Tip: Before filing your taxes, consult with a local Arizona mortgage lender to see how your numbers will impact your loan eligibility.

Planning to Buy in 2025? Let’s Make It Happen the Arizona housing market continues to grow, with buyers seeking opportunities across the Valley and beyond. Whether you’re a first-time buyer or moving up to your next home, avoiding these financial missteps can make the process smoother and stress-free.

📲 For more tips, Arizona market updates, and expert guidance, follow @cherismith.azrealtor on Instagram.

🔑 Ready to start your home buying journey? Contact me at +1 480-298-5551 for a free consultation.

Brokered by eXp Realty | Serving Greater Phoenix, Scottsdale, and surrounding Arizona communities.