A. No. The funds go directly to the borrowers checking account which then you may pay the general contractor, subcontractors, and materials from that account directly.
A. A draw is the method by which funds are taken from the construction budget to pay material suppliers and contractors. As you draw from your construction line-of-credit your loan increases by that amount. You begin making regular monthly payments) Principal, Interest and any required escrow) following the completion of your construction period and after final disbursement had been paid.
A. Unlike a line-of-credit you would first need to perform the work and then request a reimbursement of funds.
Step 1. Once a draw is requested, draw inspectors visit the worksite to evaluate current progress against what has been reported. They’re looking specifically to validate that all work items and materials included in a draw request are performed and issue a reimbursement in the form of a Draw directly to your checking account.
Step 2. The lender would then collect any lien waivers from General Contractor, Sub-Contractors and material suppliers paid to ensure that no liens have can be placed against the property at a later date.
A. Yes, with limitations. Items such as Cabinets, windows, modular and kit preorder items with property documentation such as an invoice for the deposit may be considered.
This is a common occurrence with construction projects. Something outside your control or an upgrade you make along the way can cause the overage. Either way, if there are not sufficient funds in the loan to pay for the overage, then you must pay for it with your own cash. Perhaps building a contingency fund into the loan amount is a better way to handle any overages. Ask your lender to explain their policy on the use of contingency dollars.
A. Yes, with limitations. Items such as Cabinets, windows, modular and kit preorder items with property documentation such as an invoice for the deposit may be considered.
A. Typically, inspections begin upon notification that the foundation is completed and continue throughout construction. With Built, inspections are automatically scheduled after a draw is requested. These inspections are made for the purpose of determining the percentage of completion of the property and that the home is being built in conformance with the plans and specifications submitted.
A. Each draw requested will be reviewed by the lender along with any required third-party inspections or Lien Releases and the funds will then be wired into your checking account within 2 business days thereafter.