The Lesser Known Inspection - the Draw Inspection

by : Eric Badgely

Most people know that the home inspector inspects homes for buyers and sellers. A lesser known inspection is called the 'draw' inspection. This type of inspection is provided, as part of a construction loan, for banks and other financial institutions.

If you have never heard the term 'draw inspection', here is a brief description. The draw inspection is one type of inspection that is frequently performed by a home inspector. While not as common as residential home inspections for buyers or sellers, the draw inspection is done for the benefit of a lender. When banks, and other lenders, make construction loans, they need to confirm that funds are being paid out, and the work is being completed, in a timely manner.

To protect themselves, and their investor's money, these institutions will contract with inspection firms to give - usually on a monthly basis - updates on the progress of the project. It works like this: The builder turns in to the lender paperwork, stating what work has been completed and requesting the funds that he or she expects to have 'released' to the company account. The draw inspector is then called in, on the bank's behalf, as an impartial party to see that said work was really completed by the builder. The draw inspector will assess the progress and take photos of various systems and components: footings, foundation, power hookups, landscaping, siding, roofing, trusses, floors, etc. Really, if you can name it, and the bank has budgeted for it, then the inspector will probably be asked to look at it during one or more of the draw inspections that takes place over the -- usually several -- months that the home is being built from the ground up.