If you’re building a new home or funding a construction project, you’ve likely heard the term “draw inspection”. But what exactly does it mean—and why is it so important?

Whether you’re a contractor, real estate investor, or homeowner building from the ground up, understanding draw inspections is key to keeping your project on time, on budget, and in good standing with your lender.

What Is a Draw Inspection?

A draw inspection is a site visit conducted by a licensed inspector or third-party verifier to confirm the progress of a construction project before a lender releases the next round of funds, or “draw.”

Banks and private lenders use draw inspections to:

Verify completed work matches the requested payout
Ensure loan funds are being used appropriately
Prevent fraud and overpayment
Monitor project timelines and compliance

When Are Draw Inspections Performed?

Most construction loans are distributed in phases or “draws.” A draw inspection is typically scheduled:

After excavation and foundation work
Once framing is complete
At mechanical rough-in and pre-drywall stages
After interior finishes
At final completion or certificate of occupancy

What Does the Inspector Look For?

During a draw inspection, the inspector will:

Verify line items on the draw request are completed
Document the progress with photos
Check for code compliance and quality
Identify any delays, issues, or discrepancies
Provide a written report to the lender

The goal isn’t a full home inspection—it’s focused on progress and payment accuracy.

Why Are Draw Inspections Important?

For lenders, draw inspections reduce financial risk and offer a structured process to verify each phase of construction before releasing additional funds. This oversight ensures the project is moving forward as planned and limits exposure to incomplete or substandard work.

For contractors and developers, draw inspections help maintain transparency, reduce billing disputes, and improve credibility with both clients and lenders. Knowing an independent inspector will verify each milestone can also motivate subcontractors to deliver timely, high-quality work.

For homeowners, draw inspections provide peace of mind. You’ll know that what’s being billed is actually built—and that your construction loan is being used wisely and responsibly.

Who Performs Draw Inspections?

Licensed home inspectors, construction consultants, or third-party firms with experience in residential and commercial builds typically perform draw inspections. At Mason Home Inspections, we specialize in reliable, detailed draw inspections for lenders and builders throughout Chisago, Isanti, Kanabec, Pine, Anoka, Ramsey, Dakota, and Washington counties..

How Long Does a Draw Inspection Take?

On-site visit: 15–45 minutes depending on project size
Report turnaround: Usually within 24 hours

Fast reporting keeps projects moving and funds flowing.

How Much Does a Draw Inspection Cost?

Prices range from $100 to $250 per inspection depending on location, project complexity, and travel distance. Some larger projects or remote builds may require an additional fee.

While some may see it as an added expense, a draw inspection is a cost-effective way to protect against delays, disputes, and costly rework. Compared to the potential financial losses from fraud or mismanagement, the inspection fee is a smart investment in project security.

Many lenders now require draw inspections as part of the loan agreement—and skipping them could delay payouts or lead to funding freezes if progress isn’t properly documented.

Final Thoughts

Draw inspections aren’t just a formality—they’re a critical tool for protecting your investment, building trust, and ensuring your project stays on track. If you’re building in Minnesota and need a reliable inspection partner, Mason Home Inspections offers timely, clear, and professional reports tailored to lender requirements.

We understand the importance of speed and accuracy in the construction funding process. That’s why we commit to fast site visits, thorough documentation, and responsive communication every step of the way.

Contact us today to schedule a draw inspection or request a sample report. Let’s keep your build moving forward—safely and efficiently.

What Is a Draw Inspection? Everything Builders and Lenders Need to Know