Step-by-Step Guide to Buying a Home in Madison in 2026

Thinking of buying a home this year? The smartest buyers aren’t just scrolling through listings or attending open houses; they’re preparing now to win. Many people assume the home-buying process starts with the search, but the truth is, real preparation begins before you even see your first listing.

In 2026’s fast-paced market, being “almost ready” could mean missing out entirely. Here are three steps to get ahead and become a confident, well-prepared buyer this year:

1. Review your credit and clean up issues early. Your credit profile is under a microscope, and the higher your score, the better your loan options. Start by pulling your credit reports from all three bureaus, checking for errors, paying down balances, and avoiding new accounts.

Taking these steps now can increase your score and potentially save thousands over the life of your loan. Lenders don’t just look at the number; they help you understand why your credit looks the way it does and what actions will improve it.

2. Organize your budget and savings. Don’t guess how much home you can afford, calculate it. List your income, debts, and expenses, and use a mortgage calculator to understand what your monthly costs will be. Set aside funds for your down payment, closing costs, and a cushion for moving expenses.

Lenders are closely watching debt-to-income ratios and verifying funds. Being organized now makes the approval process smoother and ensures you can act quickly when the right home comes along.

3. Get pre-approved and know your loan options. Once your credit and savings are in order, talk to a lender about getting pre-approved. This is not the same as pre-qualified; a true pre-approval verifies your financial information and gives you a lender-backed budget.

A pre-approval letter shows sellers you’re serious and allows you to make confident offers, especially in competitive markets where homes receive multiple bids. Many lenders also offer flexible programs for first-time buyers, self-employed borrowers, and buyers with alternative credit. Exploring your options early puts you ahead of the competition.

Two mistakes to avoid. Even if you follow all the steps above, these missteps can derail your progress:

• Don’t make major financial changes. Opening new credit cards, financing a car, or making large purchases can alter your debt-to-income ratio and jeopardize approval.
• Don’t rely solely on your pre-approval amount. Just because a lender approves you for a certain amount doesn’t mean you should spend it all. Focus on a monthly payment that fits your lifestyle and long-term budget.

Start preparing today. If you’re planning to buy a home this year, the time to act is now. Reviewing your credit, organizing your finances, getting pre-approved, and building a clear buying strategy will help you move forward with confidence and make smarter decisions in today’s competitive market.

If you’d like help talking through your budget, connecting with a lender, or mapping out your buying strategy, give us a call at (608) 345-6594 or email info@holtrealestateteam.com. I’m here to help you start strong and make informed choices every step of the way.