We admit it: getting preapproved isn’t the most exhilarating process. No one is excited to dig up their 2024 tax return. But this step is vitally important to having a smooth, informed, and more enjoyable home-buying experience. Even if you anticipate the preapproval process to be hiccup-free, here are a few reasons why it pays to get preapproved early, before you start looking at homes:

• You can compare rates, services, and personality fits across different lenders. It’s important to trust the lender you are working with, since they will be guiding you through (possibly) your biggest financial investment.

• Many lenders offer educational sessions as a “first step,” which you may miss if the process is rushed or

Coming up with a down payment can be a sticking point for aspiring homebuyers — even when the other pieces are in place. Below are some options to consider.

• Loan Programs: Many loan programs only require a 3% down payment, much lower than 20%, which is often cited as a rule of thumb.
   
• Down Payment Assistance (DPA): Check out this helpful overview of DPA programs in Dane County.
   
• Seller Credit: A credit from the seller cannot directly cover your down payment, but it can free up funds for your down payment.
   
• Your Home’s Equity: If you own a home, you can borrow against your home’s equity to purchase your new property, then quickly pay it off when you sell.

A mortgage is a big financial responsibility, and ideally one that can weather

Are you thinking of selling your income property and moving up to a larger multifamily property in the Madison area? Our team is here to help you leverage your gains from your first property and roll them into a new property through a 1031 exchange.

The big advantage of a 1031 exchange? A 1031 exchange allows you to defer your taxes on your gains, and invest your proceeds into a new property that continues to build wealth for you.  

(photo courtesy of Step Inside Media) 

How can Mad City Dream Homes help you with your 1031 exchange? 

We're here to help you with these three important steps, and more. 

1) Identify your opportunity as a seller. 

We'll help you assess the multifamily market and perform a market analysis to identify your