Draw inspections, city building inspections, final CO, and appraisals — see what construction loans typically require before funds release.
What Inspections Are Required on a Construction Loan? | 2MG
Draw inspections, city building inspections, final CO, and appraisals — see what construction loans typically require before funds release.
What Inspections Are Required?
Lender Draw Inspections vs. City Inspections
At a Glance
Types of Inspections on a Construction Loan
How Inspections Gate Draw Payments
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Frequently Asked Questions
Need Clarity on Construction Inspections?
Construction financing involves two inspection tracks: lender draw inspections at build milestones and municipal building department sign-offs for code compliance. Expect foundation, framing, mechanical rough-in, and final inspections — plus an as-completed appraisal before permanent financing converts. Ryan and Steve map the full inspection path for Indiana new-build files.
Before the first shovel hits dirt, an appraisal based on plans and specs establishes the as-completed value your loan amount depends on. Some lenders order a second appraisal at final completion to confirm the finished home matches projections.
During construction, the lender sends independent inspectors — separate from your builder and separate from the city — to verify work at each draw milestone. Foundation poured, framing complete, mechanicals roughed in, and final walk-through are common checkpoints before funds release.
Your local building department runs its own permit inspections for code compliance. A passed city rough-in does not automatically trigger a lender draw. Ryan and Steve coordinate both schedules so Indiana builders are not waiting on paperwork while crews sit idle.
Each inspection protects a different interest — loan collateral, code compliance, or final occupancy.
Inspections are the checkpoint between completed work and released construction funds.
Step
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Share your builder, plans, and timeline with Ryan & Steve. We will outline the draw inspection milestones and municipal requirements for your construction loan before you break ground.