Yes. When borrowing money to purchase your home, lenders will look at potential taxes, insurance, and HOA payments. These factors may change how much house you can afford and ultimately how much a bank will lend you. If you’re on a tight budget, be mindful of any HOA fees that may be required once you purchase the home.
In general, HOAs help ensure owners are properly caring for their homes, and that a consistent look and feel is maintained throughout a given neighborhood. This can include regulating what color you can paint your house, or how often you should mow your lawn. Specific rules will be outlined in the governing documents which you can be viewed upon request before purchasing a home.
Most homeowners enjoy the protections that an HOA provides their home and community. Every association is run a little differently, but most of the time, any late payment or violation receives a polite reminder given in person or by mail. Nearly all violations are resolved at this level, but you may receive several warnings before further action is taken.
HOAs will outline an escalation process for continued non-payments or violations. Communication is key, and chances are your HOA will work with you to resolve any issue that comes up. In some extreme cases, an HOA may have to take legal action against owners who continue to violate community guidelines and place a lean on their property until any issues are fully resolved.
