Start with a shared understanding of the budget
The draw process starts before the first request. The lender and borrower need a common understanding of the approved scope, budget categories, how progress will be reviewed, and what supports a release. A clean request cannot resolve an unclear starting budget.
Keep the version of the approved budget identifiable. If the scope changes, record the change and its approval separately, rather than silently replacing the original numbers.
- Identify the loan, property, borrower, and project.
- Give every budget category a consistent name or identifier.
- Record any contingency, retainage, and inspection requirements.
- Agree on the evidence and submission process before work begins.
Make the request specific
A useful request names what is being funded. Ask for amounts by budget category, the current request total, relevant invoices, and the evidence required by your lending policy. A single total and a folder of unlabeled images create avoidable review work.
For example, an illustrative $24,500 request may include $16,000 for framing, $5,500 for rough plumbing, and $3,000 for electrical rough-in. Those lines should map to the approved budget, with supporting evidence that a reviewer can find.
Separate available budget from work completed
Money remaining in a category does not establish that the requested work has been completed or is eligible for release. Review the budget and the evidence as related but separate questions.
An illustrative $120,000 project budget with $31,000 already disbursed leaves $89,000 before other commitments or adjustments. A request below that amount can still be inappropriate if it exceeds a category, duplicates a prior request, lacks required evidence, or conflicts with the loan documents.
Record the decision in context
A review should leave the next person enough information to understand what happened. If something is missing, identify it clearly. If a request is partially approved, show the approved lines and the amounts that remain unresolved.
Inspection reports, lien documentation, retainage, and title-related conditions can depend on the loan documents and local requirements. Apply your established policy and qualified advice; a generic template is not a substitute.
Keep approval and disbursement distinct
Approval is a decision. Disbursement is an event. Record both, including the amount, date, reference, and the relationship to the approved request. This distinction matters when the next request arrives before an earlier approved amount has actually been released.
Reconcile the recorded disbursement against the budget and servicing record. Leave a traceable correction when a record needs to change. The aim is a repeatable review that preserves the full story of the project.
A simple review checklist
Use this as an organizational starting point and adapt it to the loan documents and your operating policies.
- Correct loan and current approved budget.
- Requested lines mapped to budget categories.
- Prior disbursements and outstanding commitments considered.
- Required evidence available and reviewed.
- Exceptions and conditions documented.
- Approval and actual disbursement recorded separately.
- Budget and loan records reconciled after release.
Where AIRE fits
AIRE’s draw workflow brings the request, evidence, approved budget, and prior activity into the same workspace. The purpose is to make the context easier to review while keeping the lending decision with you.
Sources & further reading
Primary vendor pages reviewed September 8, 2026. Product details and pricing may change.