Deposit to secure house that is not yet built.

[brokeagain]

Hi,

I have a question regarding the deposit to secure a house with a builder.

I have found a house tha we are interested in buying and have approval in principle based on proof of having 20K deposit.

The builder will require a deposit to secure the house which I assume he will require now before he starts building. My question is, can I take the 5 or so K that he will ask for out of the 20K that the bank is asking for?

Sorry in advance if this is a silly Q!!!

 

[brokeagain]

As I have got no replies to this I'll rephrase the question:

Can I use part of the 8% deposit as a booking deposit? or do I have to come up with the booking deposit separately?

 

[mf1]

Think this one through. The whole price/cost of the whole house is 100%. The bank will lend you 80% of the price/cost. You have to find the remaining 20%. The bank don't want the 20% - they just need to know that you have it to buy the house with.

Out of that 20% comes your booking deposit and, afterwards, the balance of your contract deposit. So its all coming out of 100%

mf