How do you finance a multi-million dollar home in Scottsdale?

How do you finance a multi-million dollar home in Scottsdale? Start by deciding, before you write an offer, how much of the price you'll pay from your own money and how much you'll borrow. That one choice decides whether the purchase depends on a loan approval and an appraisal, and how much extra cash you'd need if the appraisal comes in under the price.

When this much of your money is involved, you'll want to know before you sign what happens if the appraisal comes in low or your current home takes longer to sell than you hoped. Both can be planned for ahead of time, and that's what lets you feel confident in your decisions once you're under contract. Once you've read this, you'll be able to decide on cash or a loan before you find the house, know what to have ready if the appraisal comes in low, and know what to ask your lender if you're selling too.

I'm Jen Keene, a REALTOR® with eXp Luxury in Scottsdale, AZ, and I'm the agent people call at every stage of their life. I walk every buyer through what happens before you see a single house, pre-approval and the buyer broker agreement.

If you'd like the basics of what a jumbo loan is and how it compares with a conventional loan, here's my post on mortgage options for buying in Scottsdale.

The Federal Housing Finance Agency announced on November 25, 2025 that the 2026 conforming loan limit for a one-unit property is $832,750 in most of the country, and Homebuyer.com's loan limit page lists $832,750 for a one-unit home in Maricopa County for 2026. The figure that's compared with the limit is the amount you borrow, so the size of your down payment decides whether your loan is a jumbo loan at all. The Consumer Financial Protection Bureau's page on conventional loans says jumbo rules vary by lender and that you usually need good credit and a high down payment to qualify. The same page says eligibility, pricing and features can vary widely by lender, so it's particularly important to shop around and compare several offers.

Paying cash means there's no loan to approve and no lender appraisal to wait on, and if that's your plan, have your proof of funds ready before we start. Putting more down lowers the loan amount, and a jumbo loan keeps more of your money in your accounts. Sellers look at how you're financing and how solid that financing is, along with the price, so each choice shows up in what you hand them.

Which one fits you is a question for your financial advisor, your tax professional and your lender. This is general information, not financial advice.

The Consumer Financial Protection Bureau's explanation of the ability-to-repay rule says lenders must generally find out, consider and document a borrower's income, assets, employment, credit history and monthly expenses. The rule itself, Regulation Z at 12 CFR 1026.43, says the income or assets the lender considers don't include the value of the home that secures the loan, and it includes your monthly payment on the new loan, any simultaneous loan and your mortgage-related obligations.

The size of your bank balance matters to a lender, and so does the paper behind it. If part of your down payment is coming from selling stock, a business or another property, tell your lender at pre-approval and ask what records it'll need to see, so it's in your file before you find the house. Here's my post on how financing works when you're buying a home, which covers underwriting and the habits that can delay an approval.

Redfin's February 2026 guide to appraisal gaps says your lender bases the loan amount on the appraised value, and that buyers are typically responsible for covering the difference out of pocket. The Mortgage Reports, in its March 2022 guide, says the lender figures your loan-to-value ratio from the appraised value, and that unless the seller agrees to lower the price, you'll need to come up with additional funds. That means a low appraisal on a financed purchase is a cash question, and according to The Mortgage Reports, the buyer typically needs to come up with additional funds.

The Consumer Financial Protection Bureau's page on an appraisal that's less than the sale price says the lender is required to send you a copy of the appraisal, that you can often use the lower value to negotiate a reduction in the price, and that you can consider cancelling, depending on your purchase contract. It calls paying more than the appraised value risky. Its page on revised Loan Estimates lists an appraisal below the sales price as one of the reasons your Loan Estimate can change. Federal rule 12 CFR 1002.14 says the lender has to give you a copy of each appraisal on a first-lien loan promptly when it's done, or three business days before closing, whichever is earlier.

Before you commit to a home where a low appraisal is possible, work out how much cash you could add if you had to, and ask your lender what a lower value would do to your loan. If the answer is that you couldn't add any, keep the protection your contract gives you for the appraisal.

On my page about the contract, the inspection and your money, I explain that your earnest money stays recoverable until all of these have happened: the inspection period has run out including any repair negotiation, the appraisal has come in at or above the purchase price, your loan has final approval, and you've had your review window for the HOA documents and disclosures without objecting. Once all of that is behind you, the earnest money is on the line.

The end of the inspection period doesn't end your protection for the appraisal or the loan. Those are separate steps on their own timelines, and on a large loan with more paperwork you'll want your lender working while your inspections are happening. Here's my post on the inspection period in Arizona, with the notices and deadlines for that part of the contract.

If you're moving up or downsizing, the order matters as much as the loan. On my page for buying and selling at the same time, I explain the two ways to do it. Selling first means you know what you have to spend and you can write an offer with no sale contingency, and the risk is the gap between the two homes. Buying first means there's no gap, and the risk is carrying two payments and whether you can qualify while you own both.

That's why the ability-to-repay rule matters here. Your lender counts what you owe now, including the mortgage on the home you haven't sold yet, so ask it early what it'll let you carry. That one answer tells us whether you can write a clean offer or need a contingency for your sale. If you're buying in Scottsdale, here's how moving up in Scottsdale works with your actual equity and your lender's answer.

1. Decide how much of the price is cash and how much is a loan. Do it with your lender and your financial advisor before you tour, because the answer changes what you sign.
2. Get pre-approved and sign the buyer broker agreement. I walk you through both before you see a house.
3. Gather the records behind your assets. Bring statements for every account you'll use, and paperwork for any money coming from a sale of stock, a business or a property.
4. Set aside cash for a low appraisal, or decide you'll keep your appraisal protection. Know your number before you sign.
5. Choose the order if you're selling. Sell first or buy first, based on what your lender says you can carry.
6. Read every Loan Estimate and the Closing Disclosure. The Consumer Financial Protection Bureau says the lender must give you a Loan Estimate within three business days of your application and the Closing Disclosure at least three business days before you close, and Regulation Z, 12 CFR 1026.19, sets the same timing.

The first is treating the down payment as the only cash you need. If the home appraises low on a financed purchase, the difference typically comes from you, out of pocket, unless the seller lowers the price. The second is waiting until you've found the house to tell your lender where your down payment is coming from, when the lender has to document it before it can approve you.

The third is assuming a jumbo loan works the same at every lender. The Consumer Financial Protection Bureau says the rules vary by lender, so ask each one for its own requirements in writing. And the last is deciding the order of your sale and your purchase after you've found the next house. Ask your lender what you can carry first, so you know whether you can buy without a contingency for your sale.

If you're thinking about a Scottsdale home above the conforming limit and you'd like the financing side to be as stress-free as possible, call me at (480) 203-6605 and we'll talk through the cash, the loan and the sale of your current home, or send me a message.