Getting Pre-Qualified
Your Golden Ticket to a Tucson Home
"How much house can I actually afford?"
It’s the #1 question Jill gets asked. Before you fall in love with a kitchen in the Catalina Foothills or a backyard in Gladden Farms, you need to know your "purchasing power."
In the real estate world, we call this
Pre-Qualification. Think of it as your "Golden Ticket"—it tells sellers you’re a serious buyer, and it gives you the peace of mind to shop with confidence.
Pre-Qualified vs. Pre-Approved:
What’s the Difference?
People use these terms interchangeably, but they are actually two different steps in your journey:
| Feature | Pre-Qualification (The First Step) | Pre-Approval (The Serious Step) |
|---|---|---|
| What it is | A "ballpark" estimate of what you can borrow. | A formal commitment from a lender. |
| How it happens | You provide basic financial info (income, debt). | You provide actual docs (W-2s, bank stubs). |
| Credit Impact | Usually a "soft" pull (no hit to your score). | A "hard" pull (small, temporary hit). |
| Best time for it | When you’re just starting to browse. | When you’re ready to tour and make offers. |
Pre-Qualification (The First Step)
| Feature | Pre-Qualification (The First Step) |
|---|---|
| What it is | A "ballpark" estimate of what you can borrow. |
| How it happens | You provide basic financial info (income, debt). |
| Credit Impact | Usually a "soft" pull (no hit to your score). |
| Best time for it | When you’re just starting to browse. |
Pre-Approval (The Serious Step)
| Feature | Pre-Approval (The Serious Step) |
|---|---|
| What it is | A formal commitment from a lender. |
| How it happens | You provide actual docs (W-2s, bank stubs). |
| Credit Impact | A "hard" pull (small, temporary hit). |
| Best time for it | When you’re ready to tour and make offers. |
The 3
Pillars of Your Mortgage Profile
When a lender looks at your application, they are focusing on three main things:
Your Credit Score
- The Goal: For most Tucson programs, aim for a 640.
- Jill’s Tip: Don't panic if you aren't there yet! We work with local lenders who can help you "repair" your score specifically for a mortgage.
Your Debt-to-Income (DTI) Ratio
- The Math: Lenders look at how much of your monthly income goes toward debt (car loans, student loans, credit cards).
- The Target: Generally, they want your total debt (including your future mortgage) to be 45% or less of your gross income.
Your "Skin in the Game" (Assets)
- The Down Payment: While 20% is a myth, you'll still need some savings.
- Tucson Advantage: We specialize in finding down payment assistance (DPA) programs—like Arizona is Home—that can cover much of this for you
Jill’s
Pre-Qualification Checklist
Ready to start? Have these items handy (even if just for a phone call):
- Proof of Income: Your two most recent pay stubs.
- Tax History: W-2s from the last two years.
- Banking: Statements from your checking and savings accounts (last 2 months).
- Identification: A valid driver’s license or passport.
How Do I
Get My Down Payment Funds?
One of the most common myths in Tucson real estate is that you need a 20% down payment to buy a home. In reality, many of Jill’s clients move in with 3.5% down, 3% down, or even $0 down using local programs and smart planning.
Pima County & Tucson Grant Programs
We are lucky to live in an area that prioritizes homeownership. There are several "silent" second mortgages and grants available in 2026:
- PimaTucson LIGHTHOUSE: This is a flagship program for first-time buyers and veterans. It often provides 4% down payment assistance as a forgivable grant. If you stay in your home for 5 years, you never have to pay that money back!
- Arizona is Home (AIH): Designed for buyers at or below 120% of the Area Median Income. It offers a "silent second" mortgage that helps cover your down payment and closing costs.
- WISH & HOME Grants: These programs can provide up to a 4-to-1 matching grant (you put in $1,000, they could provide $4,000) for qualifying low-to-moderate income buyers.
Using Your 401(k) or IRA
Your retirement account isn't just for the future—it can be a tool for your "right now" home.
- The 401(k) Loan: Most plans allow you to borrow up to 50% of your vested balance (up to $50,000) for a primary residence. The best part? You pay the interest back to yourself, not a bank.
- Penalty-Free IRA Withdrawal: First-time homebuyers can often withdraw up to $10,000 penalty-free from an IRA to use for a down payment.
- Jill’s Caution: Tapping into retirement is a big move. While it’s a great way to get into a home today, it’s important to understand how it affects your long-term growth.
The "Gift Fund" Option
Lenders in 2026 are very familiar with "Gift Letters." If a family member wants to help you with your down payment, they can gift you the funds. We just need a simple letter and a paper trail for the lender to verify the source.
Create
Your "Path to Purchase" Plan
Don’t guess when it comes to your financial future. We work closely with experts who specialize in helping homebuyers bridge the gap between "renting" and "owning."
Need help deciding if you should use your 401(k) or apply for a Pima County grant? We recommend chatting with Financial Advisor Name/Link. They are experts in the Tucson market and can help you create a custom savings and investment plan to get you into your dream home faster.
"Jill, who should I call?"
Finding a lender is just as important as finding an agent. You want someone who knows Tucson’s specific grants and won't treat you like a number in a call center.
I have a "shortlist" of local Tucson lenders who are incredible with first-time buyers. They are patient, they explain the "why" behind the numbers, and they offer the best rates in the desert.