Your realtor should be advising you. I think this is the point of the buying process when realtors really earn their money. Your realtor should know some contractors. Find out how much the repairs will cost.
The sellers have to work with you. No mortgage company will give you the loan without a termite clearance. And the termite clearance required fixing rotting wood and dry rot. The termite clearance is a separate report from your inspection. They report to the mortgage company.
In my case, the inspection report did not notice some stuff that Termit guy noticed. Contact Michael Keller from Top Notch termite company. Have him take a look. His due diligence saved me 10,000s as the sellers had to fix before we could close.