Benefits of Construction Disbursement

When undergoing major work to your home or business, you might work with many contractors, suppliers, and vendors, each providing one or more components of what will be a complete structure.

Construction disbursement helps provide peace of mind for a lender and borrower of a construction loan by slowly releasing the money from a loan throughout the duration of the project.

Learn more about the benefits of construction disbursement and why you should choose Monarch Title Company for your construction disbursement services:

What are the benefits of construction disbursement?

Construction disbursement is the much-preferred way to manage a project. As opposed to writing one check at the project’s start date, construction disbursement alleviates the inherent risks of dealing with large sums of money. Lenders release portions of the loan on specific dates or project benchmarks to ensure the money is spent correctly and the work is up to the proper standard.

These benchmarks are set in advance by a timeline created before the project’s start date. When a benchmark is reached, an inspection ensures the work is complete and fulfills the project’s needs. Then, the next portion of the loan is given out to complete the next section of the project. 

Why should you choose Monarch Title Company?

The Monarch Title Team regularly facilitates construction disbursement for our clients. We understand the importance of a strong paper trail when undergoing major work to your home and business. Our professionals see the problems that arise when contractors and suppliers aren’t adequately paid and will work hard to ensure the rights of your property stay yours.

Don’t hesitate to reach out to the Monarch Title Team if you are in need of construction disbursement services. We provide the following construction disbursement services at our Columbia, Jefferson City, Boonville, and Marceline locations:

  • Handling of construction draw requests and inspections
  • Paying all subcontractors and suppliers directly
  • Collecting all lien waivers and maintaining progress reports about the project status

Reach out to our expert title researchers today to learn more about how we protect borrowers, owners, and lenders with construction disbursement.