Construction Draw
What does it mean
A Construction Draw refers to the periodic advance of funds on a construction loan to the contractor during the course of construction.
Why does it matter
Understanding how construction lending works will make any construction loan much smoother. A typical construction project will be funded with periodic draws on a construction loan. Along with each construction draw will typically include activities such as collecting lien waivers and site inspections to ensure that progress is being made and the appropriate people are getting paid throughout the process.
Other Relevant Terms
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