When a construction project gets their funding approved by a lender, the mortgage documents will clearly outline how many draws can be made against the approved funds.
While the full amount of construction mortgages is registered against the property at the outside of actual construction, draws will only take place after a certain level of project completion takes place.
Each draw is identified ahead of time with the milestones defined when the project will be reviewed and draws issued to cover the project costs incurred to date.
Four draws are the most typical funding process for most construction projects undertaken.