Construction Management
Besides the underwriting guidelines detailed above, most lenders attempt to mitigate their risk in a variety of ways. The first involves due diligence on the general contractor, architect, soil upon which the property is to be built, environmental inspections, and appraisals. Then, while the construction process is ongoing, the lenders carefully inspect progress both to ensure construction is proceeding smoothly, as well as to ensure that all workers are being paid so that the security of the loan by the real estate is not violated by a mechanics lien.
Read more about this topic: Construction Loan
Famous quotes containing the words construction and/or management:
“No real “vital” character in fiction is altogether a conscious construction of the author. On the contrary, it may be a sort of parasitic growth upon the author’s personality, developing by internal necessity as much as by external addition.”
—T.S. (Thomas Stearns)
“The care of a house, the conduct of a home, the management of children, the instruction and government of servants, are as deserving of scientific treatment and scientific professors and lectureships as are the care of farms, the management of manure and crops, and the raising and care of stock.”
—Catherine E. Beecher (1800–1878)