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:
“There’s no art
To find the mind’s construction in the face:
He was a gentleman on whom I built
An absolute trust.”
—William Shakespeare (1564–1616)
“The Management Area of Cherokee
National Forest, interested in fish,
Has mapped Tellico and Bald Rivers
And North River, with the tributaries
Brookshire Branch and Sugar Cove Creed:
A fishy map for facile fishery....”
—Allen Tate (1899–1979)