# Buying a house soon - what do I need to know? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [June 1, 2004, 9:07pm UTC](https://boards.straightdope.com/t/buying-a-house-soon-what-do-i-need-to-know/248141 "2004-06-01T21:07:21Z")\ **Posts on this page:** 12\ **Page:** 2
**Author:** ![Musicat](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/musicat/32/20189_2.png) [@Musicat](https://boards.straightdope.com/u/Musicat)\ **Post date:** [June 2, 2004, 8:54pm UTC](https://boards.straightdope.com/t/buying-a-house-soon-what-do-i-need-to-know/248141/21 "2004-06-02T20:54:15Z")
> [@Jurph](#): > > Whoa - a bank can sell your debt to another bank? I can see any number of bad things about this, but right off the top of my head: what if the bank to which your mortgage gets sold decides they want more interest? Is it a pretty solid contract? Absolutely, a bank can sell your note, and they often do. They may decide to take cash up front at a discounted value and avoid the risks with holding paper. Most mortgages allow this, although if it bothers you, you can try an negotiate it away (fat chance, unless you have a lot of leverage, like your brother-in-law is the bank Prez). But no matter who holds the paper, the terms should be the same as what you signed. If you promised to pay 6% to Bank A, and Bank B buys the paper, you still are on the hook for the 6%. You may not even know the paper was sold, as some banks continue to collect and remit the funds to someone else. Don’t let it worry you! 😉 ---
**Author:** ![rockle](https://avatars.discourse-cdn.com/v4/letter/r/73ab20/32.png) [@rockle](https://boards.straightdope.com/u/rockle)\ **Post date:** [June 2, 2004, 8:57pm UTC](https://boards.straightdope.com/t/buying-a-house-soon-what-do-i-need-to-know/248141/22 "2004-06-02T20:57:35Z")
My husband and I closed on our house last December. We used USAA as our mortgage company, so I actually have a (very) little I can contribute here. > [@kittenlm](#): > > Around here…there really is no such thing as a buyers agent. The only thing you can really do is not use the Realtor (or company, for that fact) that listed the house. I don’t know about this 100%. This may be technically correct, but USAA does have a program where you can hook up with a realtor that will act as a buyer’s agent for you. This is what we did. It is worth looking into at least, because our “buyer’s agent” was made aware ahead of time of what we were looking for and, more importantly, what we could afford. No sense in looking at a $215k house if you can only afford a $185k mortgage. Working with “our” realtor also helped us to get access to new listings as soon as they went up. Our realtor was also very experienced and helped us big time with negotiations. As it turned out, we did not like our particular buyer’s agent, but we did like his assistants a whole lot, and on the whole it was a good program. > [@kittenlm](#): > > Your next biggest bargaining issue is the home inspection. Don’t cheap out! Paying a company $225 for an ok inspection is not better than paying a company $400 for a great one. Sure, you save yourself $175 now…but after you move in and everything starts to break, was it really worth it?? I recommend going to [www.ashi.com](http://www.ashi.com/) to find your inspector (actually, in PA it is law that home inspectors are a member of this group or another national organization similar to this one). If I may, let me recommend US Inspect. They did both of our inspections for us (long story for another time) and I can honestly say that it was the best $500 or so that we spent (I don’t remember the exact cost). It kept us from making a $20k mistake and confirmed that we were doing the right thing when we found a house we really loved. > [@kittenlm](#): > > Good luck and happy house hunting!!! Ditto. Maybe we’ll see you at Philly Dope soon! ---
**Author:** ![rockle](https://avatars.discourse-cdn.com/v4/letter/r/73ab20/32.png) [@rockle](https://boards.straightdope.com/u/rockle)\ **Post date:** [June 2, 2004, 9:00pm UTC](https://boards.straightdope.com/t/buying-a-house-soon-what-do-i-need-to-know/248141/23 "2004-06-02T21:00:28Z")
Sorry, missed **Musicat** ’s post … FWIW, USAA did sell our mortgage to another servicing agency (GMAC Residential, I think). We have noticed ABSOLUTELY NO DIFFERENCE in anything, really. We can still call USAA for help, and they are still as awesome as always. **Don’t panic.** ---
**Author:** ![Musicat](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/musicat/32/20189_2.png) [@Musicat](https://boards.straightdope.com/u/Musicat)\ **Post date:** [June 2, 2004, 10:57pm UTC](https://boards.straightdope.com/t/buying-a-house-soon-what-do-i-need-to-know/248141/24 "2004-06-02T22:57:22Z")
> [@kittenlm](#): > > 1. Around here…there really is no such thing as a buyers agent. The only thing you can really do is not use the Realtor (or company, for that fact) that listed the house. Again, I have no experience in NJ or PA, but this doesn’t sound right. I’ve been told the trend nationwide is for _more_representation for the buyer (and that’s a good thing!) If a potential buyer calls me, I can either get him to sign a “disclosure” form stating that he is aware that I am actually an agent of the seller, or he can sign a “buyer’s agency” form, which makes me his agent. One or the other must be done in this state; no gray areas. Any broker firm that belongs to the MLS (Multiple Listing Service), _by virtue of his posting of his listings_ (and they MUST post ALL their general listings) is making an offer to all other members of the MLS that says, “I will pay you part of my commission if you bring me a buyer and the deal closes.” That is a powerful incentive to belong to MLS, and most firms do. I seriously doubt if your state prohibits a customer from dealing thru another agent than the listing one, although the listing agent would like you to use them exclusively, of course – no one to split commissions with! > [@](#): > > If you see a house you like and you call the number on the sign in front of it and talk to the Realtor who listed it, they are now a “dual agent”. Not in Wisconsin, and maybe not in your state. Just because a buyer approaches the listing agent does not change the agent’s status. The agent is not a dual agent unless the agent has an agreement with both parties (a listing contract and a buyer’s agency contract). > [@](#): > > They work for both you and the seller, which is really not what you want. You want someone working for YOU. The only upside to a dual agent, is they have more to lose if the deal falls apart. 2 commissions, not just 1. Doesn’t add up unless there are vast state-to-state differences. The total commish doesn’t change according to the number of agents; there are just more agents to split the same pot. If I handle both sides of the transaction (whether dual agent or not), I get 100% of the commission (well, my firm does, then it is split to me internally). If another agent is involved, I have to share with them (not necessarily equally). ---
**Author:** ![Lissa](https://avatars.discourse-cdn.com/v4/letter/l/85f322/32.png) [@Lissa](https://boards.straightdope.com/u/Lissa)\ **Post date:** [June 3, 2004, 12:45am UTC](https://boards.straightdope.com/t/buying-a-house-soon-what-do-i-need-to-know/248141/25 "2004-06-03T00:45:55Z")
> [@jsgoddess](#): > > I think all of your other questions were answered, but I didn’t see this one. > > My husband has really bad credit and little income. We just applied for a home equity loan, and the bank was basing it solely on my income and credit, which is very good. > > In Ohio, if you’re married, your spouse has dower rights. It won’t hurt your wife not to be on the mortgage papers. I have no idea whatsoever if it could hurt you, should the marriage end. That’s a question for a lawyer. In our case, both my husband and I have good credit, but the loan was based off of his credit alone-- he had enough to where they didn’t need mine. While I’m not on the loan, I did have to sign the papers at closing, so I’m on the deed. What jsgoddess was referring to is a “survivorship deed”. (They’ll ask you at closing if you want one.) As I understand (and probably this differs from state to state) it transfers the house to the surviving spouse in case of a death without having to go through probate. ---
**Author:** ![Cherry2000](https://avatars.discourse-cdn.com/v4/letter/c/59ef9b/32.png) [@Cherry2000](https://boards.straightdope.com/u/Cherry2000)\ **Post date:** [June 3, 2004, 2:54am UTC](https://boards.straightdope.com/t/buying-a-house-soon-what-do-i-need-to-know/248141/26 "2004-06-03T02:54:03Z")
Title agent/licensed mortgage broker here… To answer the question above about one spouse having bad credit: Being on the loan and being “in title” to the property are two different things. You can be one, the other, or both. You can put your wife in title without her being on the loan if her credit is not so hot. That will mean that she is not responsible for repaying the debt, but has ownership rights to the property. If she is on the loan and is on title, she has ownership rights _and_ is legally responsible for repayment of the debt. In some states, there are laws concerning homestead rights… where a spouse has rights to the property just by virture of being a spouse. Ask your realtor (or better yet, a your title agent) if dower (for women) or curtsy (for men) rights apply in your state. > [@](#): > > What jsgoddess was referring to is a “survivorship deed”. (They’ll ask you at closing if you want one.) As I understand (and probably this differs from state to state) it transfers the house to the surviving spouse in case of a death without having to go through probate. There are several types of tenancy, or ways to take title. The most used are “joint tenancy” (where all parties in title own the entire property equally, and must come into title at the same time. This type of tenancy is often used as a way to avoid probate. If one party dies, their ownership rights pass to the other title holder or holders. a.k.a rights of survivorship)… and “tenants in common” (where two or more parties can hold different percentages of ownership, and can take or transfer title at different times if desired. If one party dies, there are no rights of survivorship. Title passes to the estate of the deceased). Exciting, huh? 😉 ---
**Author:** ![kittenlm](https://avatars.discourse-cdn.com/v4/letter/k/ce7236/32.png) [@kittenlm](https://boards.straightdope.com/u/kittenlm)\ **Post date:** [June 3, 2004, 3:08am UTC](https://boards.straightdope.com/t/buying-a-house-soon-what-do-i-need-to-know/248141/27 "2004-06-03T03:08:07Z")
> [@Musicat](#): > > Again, I have no experience in NJ or PA, but this doesn’t sound right. I’ve been told the trend nationwide is for _more_representation for the buyer (and that’s a good thing!) If a potential buyer calls me, I can either get him to sign a “disclosure” form stating that he is aware that I am actually an agent of the seller, or he can sign a “buyer’s agency” form, which makes me his agent. One or the other must be done in this state; no gray areas. What I was trying to say is that there is no such thing as a buyer’s agen **cy** around here. Absolutely use a buyer’s agent - meaning, not the Realtor who listed it. Unfortunately around here, if you use the same Realtor that listed the house, they are automatically a dual agent. No ifs ands or buts about it. > [@](#): > > Just because a buyer approaches the listing agent does not change the agent’s status. The agent is not a dual agent unless the agent has an agreement with both parties (a listing contract and a buyer’s agency contract). If the listing agent sells them that house they have listed, it absolutely changes their status. Their status doesn’t change if you look at the house and don’t like it but continue to use them…but it certainly changes once you write a contract on _that_ house. They really don’t use buyer’s agency contracts in this area. > [@](#): > > The total commish doesn’t change according to the number of agents; there are just more agents to split the same pot. If I handle both sides of the transaction (whether dual agent or not), I get 100% of the commission (well, my firm does, then it is split to me internally). If another agent is involved, I have to share with them (not necessarily equally). You just said what I was saying. If I handle both ends of the deal (dual agent), then the full 6% (minus what I give my company) is mine. If I have to split it with another agent, then I only get 3% (again, minus what I give my company). That is a huge difference in a paycheck! I might care a little more if that deal falls apart if I am getting 3% more! But I still don’t recommend using the Realtor who listed the house. (And as a Realtor, I really, really shouldn’t be saying that!!) Real estate in this area is kinda funky. The only forms you sign, as a buyer, binding you to that agent is when you sign the contract. That is when it is disclosed whether the agent is representing solely a) the seller b) the buyer or c) acting as a dual agent. ---
**Author:** ![kittenlm](https://avatars.discourse-cdn.com/v4/letter/k/ce7236/32.png) [@kittenlm](https://boards.straightdope.com/u/kittenlm)\ **Post date:** [June 3, 2004, 3:25am UTC](https://boards.straightdope.com/t/buying-a-house-soon-what-do-i-need-to-know/248141/28 "2004-06-03T03:25:26Z")
> [@McDeath\_the\_Mad](#): > > In th future, I will just get friends who are in the construction industry to go over the house, it’s way cheaper (a case of beer) and they do as good of if not better job then an inspector. Please, oh please don’t do this! In the US there are organizations called ASHI (American Society of Home Inspectors) and NAHI (National Association of Home Inspectors). These groups are non-profit and have very, very strict standards that all members must adhere to. In Pennsylvania, it is [law](http://www.parealtor.org/content/homeinspectionlawresources.asp) that home inspectors belong to one of these groups. They MUST inspect certain items (i.e. foundations, roofs, plumbing, heating, electrical, etc.) and they are not allowed to inspect other items (i.e. a/c when it is too cold out, move people furniture, etc.). Also by law in Pennsylvania, home inspectors must carry liability insurance not less than $100,000 per occurrence and $500,000 in the aggregate. Therefore, you are completely covered if they miss anything. Do yourself a favor and get a home inspection. When you call the company to set it up ask them about their report. How many pages is the report? Is it typewritten or checksheet? What is the turn-around time? Etc… Make sure the report is more than 10 pages and that it is typewritten. You don’t want a checksheet where they just check off good or bad next to the items. Again, PA law requires they are members of one of the groups mentioned above…I personally recommend [ASHI](http://www.ashi.com), but it is up to you. Again, good luck!! ---
**Author:** ![dorfl](https://avatars.discourse-cdn.com/v4/letter/d/59ef9b/32.png) [@dorfl](https://boards.straightdope.com/u/dorfl)\ **Post date:** [June 3, 2004, 3:48pm UTC](https://boards.straightdope.com/t/buying-a-house-soon-what-do-i-need-to-know/248141/29 "2004-06-03T15:48:49Z")
> [@kittenlm](#): > > 1. Around here…there really is no such thing as a buyers agent. Yes, there is - I just bought a property in NJ and was working with an agent who pre-screened houses for me. He and the seller’s agent split the commission - standard practice. However, I am not sure whether they are willing to do this for a $100k home (I bought something more expensive). The best thing I learned in addition to the basics (which the folks here explain very well): Do not try to save money on the hone inspection. Get a good inspector, even if the person is $100 or so more expensive. (needless to say, do not use the inspector recommended by the seller’s agent). A good home inspector will not only find everything that needs to be repaired, but also nitpick on everything else. Thus you have your to-do list for the next 2-3 years worth of home-ownership. Do not compromise on (a) mold, (b) insects, (c) water damage. Have the sellers fix it or walk away, even if if hurts because you already paid the inspection. Good luck! ---
**Author:** ![dorfl](https://avatars.discourse-cdn.com/v4/letter/d/59ef9b/32.png) [@dorfl](https://boards.straightdope.com/u/dorfl)\ **Post date:** [June 3, 2004, 3:50pm UTC](https://boards.straightdope.com/t/buying-a-house-soon-what-do-i-need-to-know/248141/30 "2004-06-03T15:50:28Z")
> [@kittenlm](#): > > Absolutely use a buyer’s agent - meaning, not the Realtor who listed it. Unfortunately around here, if you use the same Realtor that listed the house, they are automatically a dual agent. No ifs ands or buts about it. oops sorry, should have read the whole thread before replying :smack: :smack: :smack: ---
**Author:** ![rockle](https://avatars.discourse-cdn.com/v4/letter/r/73ab20/32.png) [@rockle](https://boards.straightdope.com/u/rockle)\ **Post date:** [June 3, 2004, 4:32pm UTC](https://boards.straightdope.com/t/buying-a-house-soon-what-do-i-need-to-know/248141/31 "2004-06-03T16:32:57Z")
> [@dorfl](#): > > Yes, there is - I just bought a property in NJ and was working with an agent who pre-screened houses for me. He and the seller’s agent split the commission - standard practice. However, I am not sure whether they are willing to do this for a $100k home (I bought something more expensive). They should be - they did it for us, and our house was under $100k. (Our buyer’s agent normally lists homes that are $500k+.) The USAA program is called “Mover’s Advantage,” and for whatever it is worth, when we went through the program we actually got money back for using Mover’s Advantage and then using USAA for our lender. ---
**Author:** ![medstar](https://avatars.discourse-cdn.com/v4/letter/m/f07891/32.png) [@medstar](https://boards.straightdope.com/u/medstar)\ **Post date:** [June 4, 2004, 3:17am UTC](https://boards.straightdope.com/t/buying-a-house-soon-what-do-i-need-to-know/248141/32 "2004-06-04T03:17:44Z")
My suggestion is that you don’t use a home inspector recommended by the seller’s agent, ask your work colleagues or neighbors where you live now to recommend good home inspectors. This way, you’ll get a truly independent inspector who won’t skip over defects in order to make a sale. [Previous page](https://boards.straightdope.com/t/buying-a-house-soon-what-do-i-need-to-know/248141.md?page=1)