Following the situation of a family moving from another state to Madison to buy their first home clarifies the steps they need to take. Starting with a budget of $440,000, this family first checked the support programs from the Wisconsin Housing and Economic Development Authority, WHEDA.

WHEDA operates two down payment assistance programs. The Easy Close DPA provides support from a minimum of $1,000 up to 6% of the purchase price when used with WHEDA's Conventional or FHA first mortgage, while the Capital Access DPA offers up to 3% of the purchase price at a 0% interest rate for a 30-year term. Both programs can only be applied for through WHEDA-approved lending institutions, and there are conditions regarding income limits and completion of homebuyer education.

According to Zillow, the average home value in Madison is $435,430 (as of June 30, 2026, with a 2.1% increase over the past year), and Redfin reports that the median sale price for the three months leading up to May 2026 is $440,000. This is not far off from the family's budget.

If we assume that the family receives $26,400, which is 6% of the $440,000 home, through WHEDA's Easy Close DPA to cover the down payment, the remaining loan principal would be $413,600. Applying a fixed interest rate of 6.6%, the monthly principal and interest payment would be approximately $2,643.

Next, the family checked property taxes. The effective property tax rate in Wisconsin is known to average 1.51% (according to Ownwell, with a median property tax of $3,746 based on a median home value of $247,400). Other sources report a range from 1.32% to 1.61%, as tax rates vary by county and school district. For a $440,000 home, the annual property tax could be around $6,600.

Checking the credit score is also an essential step. A score above 780 typically results in an average interest rate of 6.59%, while scores in the 760s, 740s, and 700s correspond to rates of 6.66%, 6.75%, and 6.91%, respectively. Before applying for pre-approval, the family reviewed their credit report and prepared recent W-2s for the last two years, recent pay stubs for the last two months, bank statements, and identification.

Another criterion the family confirmed during their consultation with the bank was the DTI, or debt-to-income ratio. Lenders generally consider around 43% as the upper limit, which includes existing debts like student loans or car payments. They were also asked if they might move again in the next few years, but since they had a clear plan to settle in Madison, they decided to opt for a 30-year fixed-rate mortgage rather than an ARM with a lower initial rate.

Closing costs typically range from 2% to 5% of the loan amount, so for a loan in the $410,000 range, this could be between $8,000 and $20,000. This includes appraisal fees, title insurance, and initial escrow deposits. The home inspection revealed that some plumbing needed to be replaced, allowing them to negotiate a price adjustment with the seller. After closing, monthly principal and interest payments began to be collected along with property taxes and insurance premiums in an escrow account. In areas like Wisconsin, where winter heating costs can be a burden, it helps to compare estimates from multiple insurance companies for the insurance portion.

Families moving from other states may find it easier to judge based on the tax rates or insurance premiums of their previous state, but in areas like Wisconsin, where tax rates vary by school district, it is safer to verify by address. The figures and program conditions discussed here may vary by time and county. This is not investment or legal advice, and it is recommended to consult with lending institutions and real estate professionals before finalizing any contracts.