Draw payments are made typically one of two ways. They may be made payable to both you and your builder or just your builder.

The advantage of having them payable only to your builder is that your builder receives his funds more quickly by not needing to obtain two signatures to cash the check.

The disadvantage of this plan is that the draw check is useful in ensuring performance of your builder.

You may prefer to use the draw checks as a way to control the draw process.

Options exist to make sure your financial security is not jeopardized.

Price your house realistically and determine exactly what you need to get out of it.

Talk any scenarios through with your loan officer to make sure you get the construction financing that is right your situation.