Construction Draw Inspection Glossary: 500+ Terms, Interactive House Map & Field Guide

Interagency supervisory thresholds flagging banks whose construction loans exceed 100% of total risk-based capital, or whose total CRE exceeds 300% with rapid growth — triggering enhanced risk-management expectations.

Single-layer asphalt shingles cut into three tabs — the economy roofing option.

The pace at which available homes or lots sell in a market, used to gauge demand for spec construction.

Financing for land purchase plus horizontal improvements — grading, roads, and utilities — to create buildable lots.

Insurance settlement basis equal to replacement cost minus depreciation.

A party (such as the lender or owner) added to another's liability policy for protection against project claims.

A dollar or percentage change applied to a comp's sale price to account for differences from the subject property.

Arc-fault circuit interrupter protection detecting dangerous arcing, required on most living-area circuits.

The projected market value of a property after renovations are complete, used heavily in fix-and-flip lending.

Closing gaps and penetrations in the building envelope to reduce uncontrolled air leakage.

A budget placeholder for unselected items (e.g., flooring); actual selections reconcile against it.

The reserve banks hold against expected loan losses under the CECL accounting standard.

The panel's rated capacity (commonly 200A residential), sized to the home's electrical load.

Bolts embedded in the foundation that secure the sill plate and frame against uplift and lateral loads.

The kitchen and laundry appliances specified in the budget and installed near completion.

An independent, licensed opinion of a property's value, required for most real-estate-secured loans.

The shortfall when appraised value comes in below purchase price or projected cost, requiring extra borrower equity.

Rules insulating appraisers from pressure by loan production staff, enforced through ordering firewalls and appraisal management companies.

A third party that orders, assigns, and reviews appraisals, providing independence between lenders and appraisers.

A qualified reviewer's assessment of an appraisal's accuracy and compliance before the lender relies on it.

Lenders generally underwrite to the lower of the two, which affects maximum loan amount.

Laminated, dimensional asphalt shingles with longer warranties and higher wind ratings than 3-tab.

Revised drawings documenting what was actually constructed, including field changes.

The appraised value a property is expected to have once construction is finished, used to underwrite construction loans.

The current market value of a property in its present condition, before any construction or improvement.

The value a taxing authority assigns for property tax purposes, often differing from market value.

The lender's right to step into the borrower's construction contract and plans if the loan defaults.

The complete, timestamped record of every action, document, and decision on a loan file, allowing any disbursement to be reconstructed and defended.

A statistical model estimating property value from data, used for screening and portfolio monitoring rather than origination of construction loans.

A device stopping contaminated water from flowing backward into the potable supply.

The protective, decorative wall surface behind counters, typically tile.

An older method with studs running continuously from foundation to roof, largely replaced by platform framing.

The vertical posts supporting a handrail, spaced to prevent fall-through.

Trim covering the joint between wall and floor.

A full-height below-grade foundation creating usable space beneath the first floor.

The vented fan removing moisture from bathrooms to prevent mold, required to duct outdoors.

Pre-cut fiberglass or mineral wool blankets fitted between framing members.

A major horizontal structural member carrying loads from joists or walls to posts or foundations.

The maximum load soil can support without failure or excessive settlement.

Sewer, drain, and supply piping installed beneath the slab or ground level before the foundation pour.