Processing and paying draw payments based on construction progress and individual milestones have always been tasks requiring direct monitoring and manual entry from different sources. Lenders approve construction loan payments in stages as the project progresses. Completing a perfect or “just good enough” draw request has so far been a tedious task, requiring a professional construction administration team as well as careful planning and preparation. While the premise of processing the draw request has not changed and the documentation needed to apply for a credit payment remains important, the process itself can now be managed and automated via a central platform. The type of construction contract that is best for you depends on the project, the client, and how you want to be paid for your services. If you want to see a typical construction contract for one of these types of contracts, a quick google search for “construction contract template” or “free construction contract template” can help you find what you`re looking for. Construction loans can be financially profitable, but must be documented and managed with attention to detail. With the help of an experienced team of professionals, construction lenders can successfully navigate these challenging waters. One of the main challenges, for both construction borrowers and construction lenders, is to quickly review and approve draw requests. These files are usually included with honest errors or hard-to-read items, such as a handwritten receipt or invoiced items, that do not seem to fit the value plan. The difficult task for construction credit managers is to understand draw packages, quickly schedule a third-party inspection, and work within their organizations to obtain adequate authorizations. Fortunately, tools such as Contract Simply serve as a useful assistant for construction credit management by taking over much of the control and voting of laborious and error-prone documents.
Title insurance The lender requested the issuance of an ALTA (6-17-16) Lender`s Policy of Title Insurance at the time of closing the loan to the tune of the loan. . . .