Found the right place ...What now

Jinxi

My partner and i ahve about 8000 saved towards deposit on house and just discovered the perfect property priced at 130000(fixer upper). We are going to approach banks tomorrow. What are our chances of getting them to approve us prematurely. According to those mortgage calculators with our incomes we should be approved should be approved for 250,000 and we want substsnstially less. (prob about 160,000)

Idbatterim

Is 130k the asking price? If so I take it you will put in a lower first offer? Remember than anything you borrow will be doubled by the time you pay of your home loan after the life sentence!

D3PO

if you have 8k saved only forget about it. 92% max is what you will get so keep saving.

Jinxi

Idon't know what to do. Don;t i have to get the mortgage approval b4 we even approch the real estate agency? And actually, thats another good question. I heard some local gossip that the seller wnats rid quick, so 130,000 is actually a ridiculously good price. So should I fanny about offering less. If someone else just offers the asking price they won't even bother asking us if we want to up our offer!
I know its silly to include redecoration prices with the mortgage but we have no choice if we wnat to make the place livable!

D3PO

like i said forget about it

1) your 8k needs to cover your legal fees so youhave less for a deposit

2) bank will only give 92% of purchace price max

3) you cannot inlclude cost for decoration in your application

so you need to keep saving and forget about it becasue you have zero chance of getting a mortgage for this property given the detail you are providing

Jinxi

Crap!!!
I think if we scraped it we could get the 8%. Could get a bridging loan??? 8% is only 11,000.
Did't know re decorations. Is this true even if property is worth more than the 130,000?

Idbatterim

OP where is the property located and what are similar non fixer uppers going for?

Jesh1

Idbatterim wrote: »

Remember than anything you borrow will be doubled by the time you pay of your home loan after the life sentence!

Wise words.........Something alot of people seem to have forgotten during the last few years.

Jinxi

Its 1 acre with old farmhouse. That size site alone in location is 100,000. Farmhouse is livable now but is like something from that "how clean is your house show"
I know that adding furnishings etc on to the mortgage is MENTAL. Would need minimum funding for new carpets and some paint.