FAQ
Construction draw inspections verify that work in a loan draw request has been completed so lenders can release funds with confidence. This page covers the fundamentals: what a draw inspection is, how it works, who is involved, and how it differs from other property evaluations.
Reviewed by RAZE ·
A construction draw inspection is an on-site assessment used to verify that the work included in a construction loan draw request has been completed. The inspector documents visible progress, photographs the property, evaluates completion by budget line item, and submits a report that helps the lender decide how much funding to release.
See how RAZE standardizes draw inspectionsThe lender or loan administrator orders the inspection after receiving a draw request. An inspector visits the property, compares visible progress with the request and project documents, captures supporting photos, and estimates the percentage completed for relevant budget items. The lender reviews the report before approving, reducing, delaying, or denying the draw.
See how RAZE standardizes draw inspectionsDraw inspections help lenders confirm that construction funds are being converted into completed improvements that support the collateral. They reduce the risk of overfunding, inaccurate progress claims, project delays and incomplete construction. They also create a documented record supporting each draw decision.
See how RAZE standardizes draw inspectionsMost construction loans with staged disbursements require an inspection before each major draw. Requirements vary by lender, project type, loan agreement and risk profile. Small renovation loans may sometimes use invoices, photographs or other evidence, while ground-up and commercial projects usually require independent on-site verification.
See how RAZE standardizes draw inspectionsThe lender, construction loan administrator or fund-control provider typically orders the inspection after receiving a draw request. Borrowers and contractors may provide scheduling information, but the inspection is usually commissioned on behalf of the lender to preserve independent verification.
See how RAZE standardizes draw inspectionsDraw inspections may be performed by independent field inspectors, construction professionals, inspection companies or internal lender personnel. The required qualifications depend on the lender, project complexity and jurisdiction. The inspector’s primary responsibility is to provide objective, documented evidence of visible construction progress.
See how RAZE standardizes draw inspectionsNo. A draw inspection verifies construction progress to support a funding decision. A home inspection evaluates the condition, safety and functionality of a property for a buyer or owner. A draw inspector generally does not conduct a comprehensive code, safety or systems inspection unless specifically included in the scope.
See how RAZE standardizes draw inspectionsNo. An appraisal estimates the property’s value, while a draw inspection verifies the amount of construction work visibly completed at a specific point in time. A project may require both because they answer different questions for the lender.
See how RAZE standardizes draw inspectionsA draw inspection occurs during construction and supports a specific funding request. A final inspection occurs near project completion and confirms the final visible status of the work. Neither should automatically be treated as a municipal code inspection or a certificate of occupancy.
See how RAZE standardizes draw inspectionsOrder, fulfill, and review construction draw inspections with consistent reporting and nationwide coverage.
Explore draw inspections