Great question, James!
The biggest issue confronting you at this price level is that you'd be looking at a "jumbo loan." And to be quite honest, lending restrictions and requirements on jumbo's (above $417K in the metro Phoenix area) have gotten to be unbelievably difficult. If you don't have a relationship with an experienced, reputable Loan Officer, I would strongly encourage you to find and consult with one. If there are other options for you, s/he could lay them out for you. If you'd like me torefer you to one of the best LO's in the state, just let me know.