If you are looking for a home that suits your needs, budget, and desires, you might encounter some houses for sale that you like that are part of a homeowners association (HOA). When you buy a house that is included in an HOA, you will have dues to pay each month to the HOA, and these dues can affect a variety of things. Here are three important things you should understand about these dues when buying a house.
They can affect the amount you can borrow for the loan
The first thing to know is that HOA dues are an extra bill you will have when living in a house that has an HOA, and your lender will factor this in. What this means is that you might not be able to borrow as much money to buy a house if you choose one with an HOA, simply because there will be that extra monthly fee you must make. If you bought a house without an HOA, you could likely afford to pay a little more per month for the mortgage because you would not have the HOA dues to pay each month.
They pay for some things but not for everything
Secondly, if you are considering a house with an HOA, you should find out three main things. The first thing is the amount of the HOA dues, as these can vary a lot. Secondly, you should find out what the dues cover. The dues you pay each month will likely pay for a lot of things, mostly involving general maintenance of the exterior of the house, the yard, and common areas, but the dues will not pay for everything. For example, you will still have to pay property taxes and home insurance, and you will still be responsible to pay for all the repairs you need for the inside of your home, including repair bills for broken appliances or furnace repairs. The other important thing to ask is for a list of rules so that you know what you can and cannot do if you live in this particular home.
When people apply for loans to buy homes that are part of an HOA, lenders often want to evaluate the state of the HOA before approving the loan, so you should be prepared for this if you are planning on buying a home like this. You can learn more about HOAs and homes for sale by contacting a local real estate agency.