Important Considerations for Homeowners’ Associations, Part 2
by EM Admin
on Tuesday, November 12th, 2019 at 7:52am.
In part one of this two-part blog series, we went over some of the important factors to keep in mind if you’re considering moving into a home that falls under a homeowners’ association. Abbreviated HOA, these groups are often responsible for various neighborhood or community services and regulations, from general maintenance to shared amenities, neighborhood watch and several other potential areas.
At Eagle Mountain Living, we’re proud to offer a variety of homes for sale in several of our great communities, plus real estate agents who will help you understand every detail, including potential HOA involvement in a property you’re looking into. Today’s blog will go over a few additional areas to keep in mind as you’re investigating such properties.
If you’re looking into homes in urban or relatively crowded areas, it’s possible parking will be limited to some degree. There are also certain HOAs or local ordinances that restrict parking in certain areas, such as certain sides of the road or other areas.
There may be some level of enclosed garage space or exterior parking around, and these will often be governed by HOA rules. There could be special parking assignments based on location or other factors. If you’re purchasing a home from a previous member of the HOA, you may be allowed to have their parking space transferred to you – or in other cases, you may be put on a waiting list. Be sure to inquire about this plus any costs related to parking you have to keep in mind.
In the majority of cases, HOAs are managed by volunteers who are owners and residents within the covered area. This is a good approach for several reasons, but mainly because such individuals live in the actual area and have a vested interest in making decisions that benefit everyone in it.
However, there may arise situations where board members disagree or do not have proper HOA management skills. If possible, speak to the HOA board president to get an idea of how well it’s managed and whether there are any issues you should be aware of.
Mortgages and HOA Fees
HOAs are important to think about when applying for a mortgage as well. When applying, most lenders will factor in HOA fees for your final approval – this might mean you’re allowed to borrow just a bit less, even if you’ve already been pre-approved. Your bank may ask to review a copy of the HOA budget before finalizing the mortgage, just to be sure everything is in order and there’s no overcharging risk.
For more on homeowners’ associations and considerations for moving into a home governed by one, or to learn about any of our realtors or homes for sale, speak to the staff at Eagle Mountain Living today.