New Home Construction Draw Inspections
New Home Construction Draw Inspections are requested when a loan has been made for construction of a new home. In it’s most basic form, this inspection is a “Construction Draw Inspection” or “Construction Loan Inspection.”
These inspections are very important and the inspector must recognize the unique reporting requirements needed in order to satisfy both the lender and the borrower. The inspector’s duty is to report completion status of the home under construction as funding for the construction is received in “draws”, or payments, that normally occur only as certain work has been completed.
Inspectors should be somewhat familiar with the basics of home construction but only to the extent that they to need to understand that foundation and underground work is normally the first step, framing the second, roofing, third and so on.
Inspectors also should recognize that land clearing and grading, underground utility work and cleanup after construction are just a few of the “unseen” expenses that need to be taken into account when asked to report on percentage of completion. What you don’t see is just as important as what you do see.
Excerpt from “Mortgage Field Services” by Terry Platt
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