The construction disbursing coordinator at your commercial title company partner will review the draw request documentation, ensure loan proceeds are disbursed periodically based on each draw request to pay contractors, and collect lien waivers from the general contractor for payments made. Once construction commences, generally at pre-agreed upon intervals, (not more often than monthly) a general contractor will submit a draw request to the lender, borrower, and the title company with the appropriate documentation that supports its request for funds. There can be an initial disbursement, or “draw,” at closing to pay pre-development costs such as engineering, architecture, or soil testing. The disbursing process begins at loan closing where three parties – the lender, the borrower, and the title company – sign a disbursing agreement that establishes each party’s responsibilities for documentation, along with how and when loan funds are going to be disbursed. The process that protects the interests of each party in construction – from the borrower to construction companies, and from the title insurance company to the lender – is construction disbursing. In issuing a title policy, the insurance company also seeks to ensure no lien is superior to that of the lender's mortgage. In that same sense, lenders’ interests are also aligned with that of the title insurance company. Lenders need to ensure that no construction company associated with the project has cause to file a mechanics lien – a type of lien that may supersede the lender’s mortgage position in many states – based on the disbursement of funds in the construction process. Their interests are aligned because the lender’s investment is protected by the real estate collateral. Less intuitive is the lenders’ stake in the interests of the construction companies and the title insurance company. The borrower and the lender have a joint interest in a check-and-balance for funds disbursed to the construction company both in terms of timely payment and in terms of managing loan proceeds. Serving the borrower well is the mission of most lenders. The lender's interest in the success of the borrower is common sense. In addition to ensuring that their own interest is protected, lenders want to ensure the interests of the borrower, construction companies, and title insurance company are also protected, as we explain in more depth below. Lenders' interests are inextricably connected with those of the other parties involved in the project. Servion Realty can now connect borrowers with Realtors anywhere in the nation. Go2Source gives our partners a new way to retain preapprovals.