Which block do the construction inspection fees go in on the GFE? They are paid out after the closing to the appraiser. I think we were confusing them with Lender Inspection Fees which I think if we retained would go in Block 1.
Thank you.
Kathleen (Dusty)

They are not a closing fee and don't go on the GFE as they are not paid before or at closing. The fees would be supported by your loan contract and treated as finance charges for TIL purposes however.

We collect the construction inspection fees at closing and hold them for future inspections payable to the appraiser. I think they do need to go on the GFE otherwise how does the borrower know what his estimate closing costs are going to be? I think they need to go in block 3, but would like to know for sure. Thank you.

If being paid to your third party appraiser (which you indicate), I would agree with Block 3, Dusty.

If they are collected up front then I agree with RR.

This forum is a little old, but it appears to be the appropriate channel for my question. Does the above information still stand that construction inspection fees are not included on the GFE if they are paid after closing? When would they be included? Thanks.

My understanding was that if they are not being collected at closing then they are not a closing fee; therefore, they would not be included on the GFE or the HUD as they are not paid at or before closing.

If the fee is collected prior to closing, it would be included on the GFE.

Is this correct?

Yes.

Thank you.

We do a one-time close construction to perm loan that is modified at construction completion to the perm portion, and we weren't sure if we should put the estimated escrow deposit amount on the GFE at loan inception. The escrow deposit won't be due until payments start.