I know this has been beat to death 500 times but I unfortunately have to make it 501 so I know for sure what we need to do.
If we receive an application for a $300,000 construction loan for a primary residence (without a takeout from another lender), do we have to:
1. Give early disclosures for the construction loan?
2. Give early disclosures for a permanent loan at the same time (even though they didn't apply for the permanent loan and we wouldn't know what term, etc to disclose for)?
I think from what I have read is that the answers are yes to both. One last question:
3. Would there be any instances for a construction loan for a primary residence where you wouldn't give early disclosures?
I had previously thought the "may be converted" language in RESPA meant construction-perm loans and not loans where there was two separate loans, applications and closings. The gurus are all saying the "may be converted" means not only this but if we even think (basically) we "might" do the final loan. You would think this could be written better in the regulation to be more clear.
How long until retirement??