How to Secure a Mortgage for Your Dream Home in Dane County

Securing a mortgage for your dream home in Dane County is a key step in the home-buying process, and with the right guidance, it can be a smooth and empowering experience. Whether you’re looking to settle in vibrant Madison, family-friendly Waunakee, or charming Cottage Grove, preparing strategically and leveraging innovative programs can make all the difference.

1. Start the Process with Your Realtor

Tony Burns from Fairway Mortgage in Madison, WI, highlights the importance of involving a real estate agent early in the process. “Real estate agents can help potential buyers start the process, get a feel for the market, and understand the timeline. Then, when the client is closer to being ready to buy, the agent can refer them to a lender for more detailed financial information and pre-approval.”

Partnering with a local expert like me ensures you’ll understand the market trends in Dane County and have a strategy tailored to your goals.

2. Explore the “Buy Before You Sell” Program

Tony Burns also shared details about Fairway Mortgage’s innovative “Buy Before You Sell” program, designed to make the transition between homes smoother for those who are both buying and selling. This program provides:

• A Guaranteed Offer: Homeowners receive a guaranteed offer on their current home.
• Non-Contingent Offers: This allows buyers to make offers on new homes without contingencies tied to selling their current property.
• Increased Flexibility: Buyers can act quickly in competitive markets, such as Cottage Grove or Verona, where inventory is tight.

Tony emphasized, “This program can be a game-changer for many clients, as it removes the uncertainty and pressure of having to sell their current home before purchasing a new one. It’s especially beneficial in low-inventory markets, where timing is critical.”

3. Understand Your Budget

Before pursuing pre-approval, evaluate your financial readiness. Consider:

• Down Payment: Ranges from 3% to 20%, depending on the loan type.
• Monthly Payment: Factor in principal, interest, taxes, and insurance.
• Emergency Fund: Keep savings set aside for unexpected costs.

Local Insight: In markets like Waunakee, where the median home price is $811,200, and Madison, where it’s $423,400, understanding your budget is critical to narrowing down your options.

4. Strengthen Your Credit Score

Your credit score has a significant impact on your mortgage rate. Steps to improve your score include:

• Paying off debts.
• Avoiding new credit inquiries.
• Resolving any errors on your credit report.

5. Get Pre-Approved

Pre-approval not only helps you understand your buying power but also signals to sellers that you’re a serious buyer. Gather documents such as pay stubs, tax returns, and proof of assets to speed up the process.

Pro Tip: In fast-paced markets like Sun Prairie, where homes sell quickly, having a pre-approval in hand can make all the difference.

6. Lock in Your Interest Rate

Mortgage rates fluctuate, so consider locking in your rate early to avoid potential increases during the closing process. A trusted lender like Tony Burns can help you navigate the timing.

7. Prepare for Closing Costs

Closing costs in Dane County typically range from 2% to 5% of the home’s price. These include appraisal fees, title insurance, loan origination fees, and prepaid property taxes.

Why Dane County is Perfect for Your Dream Home

Dane County communities offer a blend of small-town charm and urban amenities:

• Waunakee: Excellent schools and proximity to Madison.
• Cottage Grove: Fast sales and rising prices reflect high demand.
• Madison: Vibrant city life and a competitive housing market.

Conclusion

Securing a mortgage for your dream home in Dane County requires careful planning and local expertise. From strengthening your financial position to exploring unique programs like “Buy Before You Sell,” taking the right steps can make your journey stress-free and rewarding.