Are HOA Fees Factored into Your Loan Approval?

When working with Wellington home buyers one of the first conversations we have prior to looking at homes for sale are HOA fees; Are they open to purchasing a home that has an HOA fee and if so will it impact their loan approval?

While many home buyers don’t think twice about paying an additional $200 monthly HOA fee, especially when that fee includes cable, lawn care and amenities, it could be a deal breaker if they’re obtaining financing.

Earlier this year I worked with a great couple who were approved for a $300,000 loan and the only Wellington communities they were interested in had HOA fees. However they were uncertain if their loan approval included HOA fees, so I contacted their lender.

After a quick conversation I found out the loan approval my clients received was based on finding a home with no monthly HOA fee. Knowing their favorite neighborhood had a $300 monthly HOA fee I asked their lender to provide an updated approval to include this additional monthly fee.

Within hours we received an updated approval for $240,000. Yes, just like that my clients went from a budget of $300,000 to $240,000 and purchasing a home in their favorite neighborhood was no longer an option. I know they were disappointed, but this is exactly why I ask countless questions and in some cases do additional research prior to showing homes for sale in Wellington. Had I shown them homes listed up to $300,000 in their favorite neighborhood I know they would have been crushed even more.

Wellington home buyers avoid heartache and find out if monthly HOA fees will impact your loan approval prior to looking at Wellington homes for sale.

Are HOA Fees Factored into Your Loan Approval?