Construction Loan Basics
Draws, Inspections, and Why They Matter
Each construction draw is gated by an inspection. Understand the cycle so payments don't stall.
3 min read
A draw is a scheduled release of construction funds tied to a completed phase. Before a draw is approved, an inspector verifies the work matches the plans and meets code.
Typical draw cycle:
1. Builder completes a phase.
2. Builder submits a draw request with invoices and lien waivers.
3. Lender orders an inspection.
4. Inspector confirms completion.
5. Funds are released to the builder.
Missing paperwork — especially lien waivers — is the #1 reason draws stall. Keep your Document Vault organized so every draw moves quickly.
Educational content only. NBLOCK Consulting does not provide legal, financial, lending, tax, insurance, or construction advice. Requirements vary by state, county, lender, and project — always confirm with the appropriate licensed professional.
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