3 Things To Evaluate If Buying A Home With An HOA
Buying a house for first time home buyers can be overwhelming, especially if you are buying a house with a homeowner's association (HOA). An HOA is something that controls the community where the home is located, and it requires paying monthly dues. If you are looking for a home that is part of an HOA, you should look into the following things before making an offer on the home.
The Cost Of The Monthly Fees
All HOA's have fees, but the average cost is usually between $200 to $400 per month. The fees can be lower than this, though, or higher, but it is important to find this out before you buy the house. The fees you must pay will be due monthly, which means you should view the fees as another normal monthly expense. By doing this, you are likely to have an easier time budgeting your money and choosing a house with a payment you can afford more easily.
What The Fees Cover
The second important thing to examine is what the fees are used for. In other words, how does the HOA use these fees they collect? If the HOA is in good shape and is run properly, the fees should cover a lot of things that will benefit you if you choose to buy the home in that community. The fees may cover lawn services, snow removal, garbage pickup, and maintenance of the sidewalks. They may also cover major expenses, such as roof replacement.
By finding this out, you will know exactly what other expenses you will have with the home, and this too will help you determine if you can afford the home you are looking at.
What Restrictions There Are
Finally, you should understand that HOA's also create rules, guidelines, and restrictions, and you should know what these are before you commit to buying the house. For example, the HOA may prohibit homeowners from placing things in their yards. If you have a child and want to put a swing set up, you might not be able to.
You may also have restrictions when it comes to parking your car, planting flowers, or displaying flags outside your home. Before you commit to buying the house, make sure that you are willing to follow all the guidelines and rules of the HOA, because you will legally be required to follow these if you move into that community.
If you have questions about buying a house or getting a loan for a house that has an HOA, contact a lender today.
Share