How construction loans are managed — from the first shovel to final inspection.

Once your construction loan is approved and closed, the next phase begins: the build itself.

But how exactly do the finances work during construction?
How does your builder get paid? And what role do you play during the process?

👉 Let’s walk through how draw schedules, builder approvals, and milestones work — so you can build with clarity and confidence.

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✅ What Is a Draw Schedule?

A draw schedule outlines how your loan funds are released throughout the build.

Instead of receiving the full loan amount upfront, funds are released in installments (called “draws”) as each phase of construction is completed.

Each draw typically coincides with major milestones such as:

1. Land purchase or lot payoff
2. Foundation and framing
3. Roofing and exterior finishes
4. Plumbing, electrical, HVAC
5. Drywall and interior work
6. Final finishes and inspections

📘 Your lender releases funds after confirming each phase is complete — protecting you and keeping your builder on track.

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🛠️ What’s Required for a Draw to Be Released?

Before funds are released, most lenders require:

• A draw request submitted by the builder
• A site inspection or appraisal update
• Signed draw authorization forms from the borrower (you)

We coordinate directly with your builder to make sure requests are accurate, verified, and on schedule.

💡 This process ensures funds are only released for completed, verified work — not estimates or early-stage planning.

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✅ Builder Approval: What the Lender Needs

Before construction begins, your builder must be approved by the lender. This protects you from delays, errors, or contractor issues.

Your builder will typically need to provide:

• Proof of license and insurance
• Work history or references
• Cost breakdown and signed construction contract
• Timeline and scope of work
• W-9 and business verification

Don’t have a builder yet?
📌 We can refer you to experienced, lender-approved builders in your area.

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🔍 What Happens During Construction?

Here’s what to expect as your project moves forward:

1. Scheduled Inspections: Confirm each draw milestone is met
2. Ongoing Communication: Between you, PRMI, and your builder
3. Contingency Management: 5–10% of your budget is often set aside for surprises or upgrades
4. Change Orders: Any major design or scope changes must be submitted and approved (with cost updates)

We keep things moving, make the process transparent, and help you stay in control.

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🧠 Tips to Stay on Track

✅ Choose a builder who communicates clearly and knows the draw process
✅ Review the draw schedule at closing so you know what to expect
✅ Ask questions if a phase seems delayed or skipped
✅ Keep in touch with your PRMI loan team throughout the build

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🏢 Why PRMI?

At PRMI, we help manage:

• Builder approvals
• Draw inspections and funding
• Communication between all parties

We’ve built strong relationships with contractors and title agents — and we’re here to protect your timeline and your budget.

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👇 Ready to Start Building With a Trusted Lender?

Let’s get you pre-approved, your builder approved, and your dream home underway — with a clear plan and expert support.