Once a property owner and a lender agree to the terms of a financing package for the construction, it is a good idea to set up the procedures to be followed for getting the loan money from the bank to the parties that actually provide the labor and materials. This construction loan disbursing procedure must take into account the often differing interests of several parties.

The owner wants the improvement to be completed in the shortest period of time for the least amount of money and he only wants to pay for the improvement once. The owner, generally, also wants the improvement to be high end even if he is only paying for a starter home.

The lender wants the improvement to be completed so that, if the loan is foreclosed, the security for the loan - the improvement - will have a value at least equal to the amount of the loan. The lender normally seeks a title insurance policy which protects it against the claims of filed and unfiled construction liens. The person or entity that agrees with the owner to construct the improvement is the contractor, sometimes called the general or prime contractor.

The general contractor wants the improvement to be completed as soon as possible so that he can move on to other projects. He wants to be paid immediately as the work progresses, and sometimes even before the work is completed. He does not want to submit much in the way of paperwork before being paid and he wants to wring as much profit out of the project as he can. Therefore, while the final price might befit a castle, the general would like to provide the improvement for the cost to him of a starter home.

Chippewa County Abstract has a great deal of experience dealing with all of the parties to the transaction. Lenders come to Chippewa County Abstract knowing that their mortgages will be insured, and that their instructions will be carried out to the letter. Owners and builders appreciate the convenience of working with a company that knows the local building practices, and understands the expectations of the local market.