Residential communities often form associations to care for common
areas within the community and to govern aesthetic concerns within the neighborhood.
These homeowners or condo associations often have monthly fees that are assessed
on the value of your home. The services provided by homeowners and condo associations
can vary from community to community. Be sure to read the fine print in the association
rules before buying. Some offer trash, recycling and snow removal as part of your
monthly fee. Others charge extra for these services. Some prohibit parking trucks,
boats and trailers in front of your home. Others dictate your landscaping. You
need to be sure that you can abide by the rules of the neighborhood you are considering
You also need to know that the amount of the homeowners� association
fees will be added into your monthly living expenses when looking for a mortgage.
Living in an area with an association will cost you. A higher fee for a community
that provides a wide range of services from trash to gardening may decrease your
loan amount significantly. Be aware of the consequences of choosing one type of
home versus another.
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