Draw Process

A draw is the way your builder is reimbursed for monies used to complete the various stages of the construction of your home. They will "draw" or access funds from the construction account (also referred to as the "LIP" or Loan in Process account) when work is completed.

When the builder has finished a stage of construction, they will fax a draw request to us noting work completed for which they now need to be reimbursed. Upon receipt of this request, we immediately arrange an inspection to ensure the work has been completed. In many states an updated title examination will be performed while the inspection is completed. Upon satisfactory inspection, the draw will be approved, released, and wired to the builder's designated bank account.

We will disburse construction proceeds based on the amount of work that has been completed on the project. For example, if the construction budget is $100,000 and your project is 10% complete, we will disburse $10,000 on the project. Completed work must be verified by an inspection before disbursements will be released to the contractor. The number of draws required by a builder will vary based on many factors including the size of the home. NCM is very flexible and will work with your builder to establish a draw schedule that will work for him. Generally the contract will contain the builder's draw requirements.

At closing, you'll be presented with a document to sign that authorizes NCM to wire draws to the contractor during construction upon satisfactory verification of the work completed. By signing this form, you help streamline the process of reimbursing the builder for work completed, so that subcontractors can be paid and your builder can move on to the next stage of construction.