When searching for properties on Padzilly, you may occasionally encounter listings that show zero dollars for HOA fees or property taxes. These fees are critical to the qualification process because lenders include them when determining your approval for a home loan. Missing or incorrect information could lead to a false qualification, which could impact your ability to secure financing for the home.
If you see the message, “NOTE: $0 HOA Fee $0 Taxes” on a property card, it means the listing either doesn’t provide information about HOA fees or property taxes or lists them incorrectly as zero. Here's how to handle this situation to ensure your qualification remains accurate.
HOA Fees: Homeowners Association (HOA) fees are often required for properties like condominiums, townhouses, or homes in planned communities. These fees cover amenities and community services. If the listing omits these fees, it can affect your affordability calculation.
Property Taxes: Property taxes are an annual expense that varies by location. These taxes are also a key part of the lender’s qualification calculation. If taxes are not included or incorrectly listed as zero, you may think you're qualified for the home when you’re not.
For HOA Fees:
Call the Listing Agent: The easiest way to confirm an HOA fee is to contact the listing agent directly. They can provide accurate information on whether the property has an HOA and how much the fee is.
Check Other Listings in the Same Subdivision: If the listing agent is unavailable, search for another listing within the same community. If one property in the subdivision has an HOA fee, it’s likely your property does too.
For Property Taxes:
Call the Listing Agent: The listing agent should be able to tell you the property's annual property tax amount.
Check the County Property Appraiser Website: Many counties allow you to look up property taxes online. Enter the property’s address or parcel number, and you should find the relevant tax information.
Estimate Property Taxes at 1%: If you cannot verify the taxes using the above methods, a conservative estimate is to assume 1% of the home’s value. Lenders will require some value for property taxes during the qualification process, and 1% is a good rule of thumb.
Once you have the correct information, registered users with an uploaded lender approval profile can modify the HOA fee and property tax fields directly in the OfferPro tool. This will allow you to adjust the financial calculations for your specific loan approval, ensuring an accurate payment estimate and qualification check.
Additionally, if you have a lender approval loaded in Padzilly, your lender may have set an automatic rule on how to handle properties reporting zero or very low taxes. This rule would match the way property taxes are handled by the lender's underwriting process, giving you peace of mind that you're seeing a more accurate qualification for each home.
To make Padzilly work best for you, we recommend getting qualified for a mortgage loan and having your lender upload your loan approval to the system. This enables Padzilly to apply your real loan parameters to all property searches, ensuring you’re only shown homes that you are truly qualified for. Not only will this save you time, but it will also help you avoid potential issues with inaccurate qualification estimates.
It’s crucial to verify all costs, including HOA fees and property taxes, when searching for a home. Missing information can lead to incorrect qualifications, but by following the steps above, you can ensure that your financial calculations are accurate. Padzilly’s tools like OfferPro make it easy to update and adjust these figures, especially if you’ve registered and uploaded your lender’s approval.
By staying on top of these details, you can confidently move forward with your home search and find properties that truly fit your budget and loan parameters.
