Buying a home in Madison: the steps and the local details

Line up financing and down payment help

Talk to a lender or mortgage broker first, so you know your budget before you fall for a house. Two local programs are worth asking about:

• WHEDA, Wisconsin's housing finance authority, offers 30-year fixed loans for buyers with credit scores from about 620 (conventional) or 640 (FHA). It also offers down payment help, either as a second loan of up to 6% of the price or, while funds last, a smaller 0% loan with no monthly payment. You don't have to be a first-time buyer, but first-time buyers must take a homebuyer education course. Income and price limits apply.
• Home-Buy the American Dream, from the City of Madison, offers up to $35,000 toward the down payment and closing costs on a home inside the City of Madison. It's for buyers at or below 80% of the Dane County median income who haven't owned a home in the last three years. Your lender applies for you, and you'll need homebuyer counseling from a HUD-approved agency.

Choose an agent, and expect an agreement

Real estate agents in Wisconsin must be licensed. Since August 2024, agents who show you homes through the MLS will ask you to sign a written agreement or disclosure before the first showing (open houses excepted). The agreement spells out what the agent will do and how they're paid. Commissions aren't set by law and are negotiable, and you can ask the seller to cover your agent's fee as part of your offer.

Browse real estate agents across the Madison area, with the communities each one works in.

Make the offer contingent on an inspection

Home inspectors in Wisconsin must be registered with the state, which requires passing a national exam and a Wisconsin law exam. Hire your own home inspector, attend the inspection if you can, and ask them to separate urgent problems from routine upkeep.

Test for radon. In Dane County, high radon levels have turned up in roughly half of the homes tested over the past five years. The EPA's action level is 4 picocuries per liter. Your inspector can test, or you can buy a kit from Public Health Madison and Dane County. If the result is high, mitigation is a common, fixable request in negotiations.

Closing: what to expect

• Closing Disclosure: your lender must give it to you at least three business days before closing. Compare it line by line with your Loan Estimate and ask about anything that changed.
• Title insurance: your lender will require a lender's policy, which protects only the lender. An owner's policy is optional and protects you. A title company handles both, and often runs the closing.
• Transfer fee: Wisconsin charges a real estate transfer fee of 30 cents per $100 of value ($3 per $1,000), and the seller pays it.

Many buyers also have a real estate lawyer review the offer or closing documents, especially for unusual properties or for-sale-by-owner deals.

Never wire money based on an email

Closing is a favorite target for scammers, who send convincing emails with "updated" wiring instructions. Protect yourself:

• Never follow wiring instructions from an email, even if it looks like it came from your agent or title company.
• Call to confirm the account details, using a phone number you got independently or agreed on in person, not one from the email.
• If you think you've been targeted, call your bank right away and report it at ic3.gov.

After you move in

Once you have the keys, our moving to Madison checklist covers utilities, your driver's license and trash day, and our property tax guide explains your first bill and the lottery credit to apply for.