I've searched for this subject, and am having a hard time finding a clear answer, so would like to ask where/how to disclose the following:
1. We have a loan request for cash-out on a free and clear primary residence.
2. Home inspection reported roof repairs are needed, we are requiring repairs be completed prior to closing. Repair costs will be paid from borrower loan proceeds at closing (paid directly through escrow.)
I understand that if the repairs are required by us, we should re-issue an LE within 3 days, adding the estimated repair costs listed in section C, service you can shop for, and provide an updated Service Provider List. But what if the borrower hasn't chosen a contractor, and we have no idea how much it is going to cost? Are we supposed to find a contractor, get a bid, and put that on the revised LE and Services you can shop for list?
Or, is the following comment from another thread accurate, and an estimate should be put on the revised LE in section H? Again, not sure how to estimate an amount?
The repair expense is then allowed to be disclosed in Section H. The contractor employed to complete the repair is engaged by the consumer and never the lender. The lender would never want to provide an implied warranty by referring a contractor, so it would be impractical to have to list this service in Section C or have the lender provide a shoppable provider for the repair.