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Guide to renting, buying, investing and living

Six steps to buying in Arizona

What you’ll run into moving from Taiwan to Arizona, explained step by step, with the original English terms and sources. This is general information, not legal, tax or mortgage advice; check with a licensed professional before you sign.

  1. 1

    Mortgage pre-approval

    Find out how much you can borrow first; sellers will ask for a pre-approval letter with your offer. Most work-visa holders can get a regular mortgage; without US credit history there are fewer options.
  2. 2

    Sign a buyer agreement and make an offer

    Sign a written agreement with a buyer’s agent (before the first tour, video tours included) that spells out services and commission. Include your pre-approval letter and earnest money amount with your offer.Source: NAR written buyer agreement rule
  3. 3

    Open escrow

    Once the seller accepts, your earnest money is wired to a third-party escrow/title company to hold, commonly about 1–2% of the price.
  4. 4

    Inspection period

    Arizona’s standard contract sets a 10-day inspection period by default. Use it to inspect the home, read the Seller’s Property Disclosure Statement (SPDS), then request repairs with a BINSR.Source: Arizona Association of REALTORS® (AAR) standard purchase contract
  5. 5

    Appraisal and loan approval

    The bank orders an appraisal; if it comes in below the price, you cover the gap or renegotiate. Review the HOA documents (CC&Rs) now too.
  6. 6

    Final walkthrough and closing

    See the home once more before closing (final walkthrough), sign documents, and pay the down payment and closing costs. Contract to closing usually takes about 30–45 days.

Glossary

HOAHomeowners Association. Collects monthly dues and sets community rules, such as exterior paint colors, parking, and where trash bins go.
SPDSSeller Property Disclosure Statement. The seller must disclose known problems with the home, such as leaks, termites, and repair history.
BINSRThe repair request after inspection (Buyer’s Inspection Notice and Seller’s Response). The buyer lists requests, and the seller replies whether they’ll fix each one.
Security depositUnder Arizona law, the deposit plus prepaid rent generally can’t exceed 1.5 months’ rent in total (A.R.S. § 33-1321). After you move out and request it, the landlord must return it within 14 days (excluding weekends and legal holidays) with an itemized list of deductions.
Earnest moneyA good-faith deposit the buyer pays once the offer is accepted. It’s held by a third-party escrow/title company and credited toward the price at closing. Commonly about 1–2% of the price.
EscrowA neutral third party (an escrow/title company) holds the money and documents, and only transfers title and releases funds once all conditions are met.
Pre-approvalLoan pre-approval. After reviewing your income and assets, the lender gives you a letter stating how much you can borrow, which you attach to your offer.
CC&RsThe HOA’s community rules, spelling out what you can and can’t do, such as exterior changes, parking, and rental limits. Read them before you buy.
Closing costsCosts of closing, including loan fees, title insurance, escrow fees, and more; the down payment isn’t included.
ITINA number the IRS issues for tax filing to people without an SSN. Investors need it to report rental income and home sales.
DSCR loanAn investment loan approved based on whether the property’s rent can cover the mortgage (Debt Service Coverage Ratio). Personal income matters less, and rates are higher.
W-8ECIA form nonresidents give their property manager stating rent will be reported on a net basis, so the manager doesn’t have to withhold 30% of gross rent.
DepreciationThe building portion (not the land) of a residential rental can be expensed over 27.5 years, lowering taxable income each year; it’s recaptured and taxed when you sell.
LLCLimited liability company. Often used to hold rental homes and shield you from liability; decide on tax and estate planning with an accountant and a lawyer.