Tips to Improve Your Company's Draw Process: 4 Keys to Success

Having a great post-closing draw process is an essential part of strengthening relationships with borrowers by providing excellent customer service while also expanding your network of contractors, consultants and other vendors involved in the renovation/construction loan process. Here are some quick tips to help your team develop a great process for managing your internal post-closing draw process while contributing to the development of customer and business relationships.

Set A Good Foundation

Establishing a solid foundation for loan files is a key to success throughout the entire post-closing draw process. Prior to closing, make sure your planned escrow amounts, document validations and key dates are in line with all parties involved in the post-closing process. Gathering all the necessary information upfront and documenting this information accurately right from the start will help set everyone involved in the process up for success.

Balance to the Budget

At each draw, make sure your draw amounts from each work line item is in line with the approved budget. Check your accounting summary to make sure any additional fees are also being paid out accurately to the correct parties. This will allow you to identify any potential accounting discrepancies upfront and avoid customer service or internal process issues later in the process.

Be Aware of Key Dates

Keeping track of key dates during the post-closing process is essential to maintaining a great experience for all parties involved. Establishing good internal processes and having a software system for tracking key dates will help to avoid delays due to expired documents or missed completion dates. Creating visibility of the key dates will help your draw team be proactive throughout the process instead of being reactive to potential delays.

Communication is Key

A critical aspect of the overall customer experience and relationship building process is to maintain excellent communication throughout the entirety of the post-closing process. Having the tools to help with this communication will help maintain a quality workflow and customer experience without compromising the productivity of your team.

Maintaining a streamlined and effective loan process from pre-closing through post-closing is a demanding task for all loan types, but can be especially challenging for renovation/construction lending. Creating internal processes that leverage the skills and talents of your draw team combined with software designed specifically with the renovation/construction draw process in mind will help establish a foundation that will set your team up for long term success in renovation/construction lending.