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Upfront Appraisal Fee for TRID "Barn & Land" Loan?

Question: 
A consumer ​wants to construct a barn on a vacant piece of property. This would be a TRID loan. The consumer already owns the property, but we do not know if we can get an appraisal that will support a loan that is just a "barn and land" loan. Can we collect an appraisal fee upfront, since we do not know if we will even be able to do the loan until we have an appraisal, and how would this effect the disclosure process?
Answer: 

Answer by Randy Carey:

Why is a barn personal, family or household purpose? If it is subject to TRID, you can't collect prior to the delivery of the LE and getting an intent to proceed.

Answer: 

Answer by John Burnett:

Once you have that intent to proceed, you can go ahead and get an advance payment for the appraisal. Just hold off on ordering the appraisal until you've been paid.

First published on 12/31/2017

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