draw process

Three common challenges many face are:

• The Bid

• Requests for Inspections/Draws

• The Lien Waiver

The detailed contractor bid is crucial. It travels with the loan from start to finish:

• The loan officer sends it to the appraiser.

• The appraiser uses it to check the rehab.

• The underwriter checks it to figure out the loan's total cost.

• The draw team uses it to pay back the rehab costs.

It's super important to get this bid right from the start. If you're not sure about the rehab details, make sure your contractor has a backup plan for surprises. You never know what's hidden in a property.

Bids should list out costs by type.

For example, under Painting:

• Is it inside or outside paint?

• What exactly will be painted inside? Like rooms, kitchen, bathroom, doors, and so on.

After your loan is good to go and before you ask for your first draw, talk to the our team. Check if the cost breakdown they have matches yours before you order an inspection. This can save everyone a lot of headaches.

For inspection requests, use the format below. Always put the loan number in the email subject.

• Client's last name:

• Address of the rehab:

• Contact person:

• Phone number:

• Contractor's email:

• List of finished work:

Lastly, when filling out the lien waiver, don't skip any parts. If something doesn't make sense, just ask.