Escrow & Title
In Tennessee, a 'lender's inspection' or 'draw inspection' during construction lending verifies:
AThe property's market value after completion
BThat construction work has been completed as claimed before funds are disbursed✓ Correct
CThe borrower's credit qualifications
DThe final appraisal value
Explanation
During construction loans, the lender orders periodic draw inspections to verify that work has been completed to the stage claimed by the builder before releasing the next loan disbursement.
Related Tennessee Escrow & Title Questions
- In Tennessee, the 'closing disclosure' must be provided to the borrower at least how many business days before closing?
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