<P> Funds are taken from the loan through a process referred to as a `` draw '' . A draw is the method by which funds are taken from the construction budget to pay material suppliers and contractors . Each lender has different requirements for processing a draw . For example , some allow the borrower to request draws online , while others require paperwork and periodic inspections . This process helps ensure that the loan proceeds are actually used for the construction and that the construction process is moving smoothly . The borrower is only charged interest on the amount borrowed at any one point . </P>
<P> Funds are taken from the loan through a process referred to as a `` draw '' . A draw is the method by which funds are taken from the construction budget to pay material suppliers and contractors . Each lender has different requirements for processing a draw . For example , some allow the borrower to request draws online , while others require paperwork and periodic inspections . This process helps ensure that the loan proceeds are actually used for the construction and that the construction process is moving smoothly . The borrower is only charged interest on the amount borrowed at any one point . </P>
when are funds dispersed on a construction loan
when are funds dispersed on a construction loan
a process referred to as a `` draw ''
a process referred to as a `` draw ''