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Hi,
I’m in the process of looking for my first home and have come across some older houses within my budget of $600k that would probably need some TLC. My question is if for example I put in an offer for a place say $570k and after the building inspection I happen to negotiate the price down to $530k to account for repairs needed of $40k to be made to the property that the owner doesn’t want any part of. As a first home buyer, would the bank account for that 40k in my loan application for repairs or only provide funding for the agreed $530k (obviously minus my 10% deposit)? Or Would I have to build a bit of equity first in order to finance repairs and live in the property as is? I’m just trying to get my head around this whole process and trying to be as prepared and learn as much as as I possibly can.
I’m in the process of looking for my first home and have come across some older houses within my budget of $600k that would probably need some TLC. My question is if for example I put in an offer for a place say $570k and after the building inspection I happen to negotiate the price down to $530k to account for repairs needed of $40k to be made to the property that the owner doesn’t want any part of. As a first home buyer, would the bank account for that 40k in my loan application for repairs or only provide funding for the agreed $530k (obviously minus my 10% deposit)? Or Would I have to build a bit of equity first in order to finance repairs and live in the property as is? I’m just trying to get my head around this whole process and trying to be as prepared and learn as much as as I possibly can.
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