Inspections
Construction loan inspections are different from municipal building inspections. This guide explains both types, what inspectors look for, and how to prepare so your draws aren't delayed.
As an owner-builder, you'll deal with two distinct types of inspections throughout your build: municipal building inspections required by your local government, and draw inspections required by your construction lender. Understanding the difference between these two types — and knowing how to prepare for each — is essential for keeping your project on track and your draws flowing.
Municipal building inspections are conducted by your local building department to verify that construction meets local building codes and your approved plans. These inspections are required by law and are not optional.
Common municipal inspections include:
| Inspection | When It Happens |
|---|---|
| Footing/Foundation | Before concrete is poured |
| Framing | After framing is complete, before insulation |
| Rough Plumbing | After rough plumbing is installed, before walls are closed |
| Rough Electrical | After rough wiring is installed, before walls are closed |
| Rough HVAC | After ductwork is installed, before walls are closed |
| Insulation | After insulation is installed, before drywall |
| Final | When construction is complete |
What municipal inspectors look for: Compliance with the International Residential Code (IRC) or your local equivalent, compliance with your approved plans, and proper installation of all systems. They're checking for safety — structural integrity, fire safety, electrical safety, plumbing that won't leak or contaminate water, etc.
What happens if you fail: The inspector will issue a correction notice listing what needs to be fixed. You fix the issues and schedule a re-inspection. Failed inspections delay your project and can delay your draws.
Draw inspections are conducted by your lender (or a third-party inspector hired by your lender) to verify that construction has progressed to the point where a draw is justified. Unlike municipal inspections, draw inspections are about verifying completion percentage and protecting the lender's collateral.
What draw inspectors look for:
What happens if there's a discrepancy: If the inspector finds that the work isn't as complete as you claimed, your draw will be reduced or denied. If they find serious problems, your lender may require them to be corrected before releasing funds.
Passing municipal inspections requires doing the work correctly — there are no shortcuts. But there are things you can do to make the process smoother:
Know what's being inspected. Before each inspection, review the specific requirements for that inspection type. Your building department may have a checklist or inspection guide available.
Don't cover up work before it's inspected. This is the most common mistake. You cannot close walls before rough plumbing, electrical, and HVAC have been inspected. If you do, the inspector will require you to open the walls.
Schedule inspections in advance. Most building departments require 24–48 hours notice for inspections. Schedule your inspection before the work is complete so you're not waiting for an available slot.
Have your plans on site. Inspectors want to see your approved plans. Keep a copy on site at all times.
Fix issues before the inspector arrives. Walk through the work yourself before the inspection. If you see something that doesn't look right, fix it before the inspector comes.
Be present for the inspection. If possible, be on site when the inspector comes. You can answer questions, point out completed work, and get immediate feedback.
Draw inspections are less formal than municipal inspections, but they're just as important for keeping your draws on track.
Only request draws for completed work. This sounds obvious, but some owner-builders request draws for work that's partially complete. Draw inspectors will catch this, and it damages your credibility with your lender.
Have your documentation ready. When the draw inspector visits, have your draw request package ready: photos of completed work, municipal inspection records, and a list of what was completed since the last draw.
Make the site accessible. The inspector needs to see the work. Make sure the site is accessible and that all completed work is visible (or documented with photos if it's been covered up).
Take photos before covering work. Once you close walls, the draw inspector can't see the rough plumbing, electrical, and HVAC work inside. Take thorough photos before closing walls so you have documentation of what was done.
Keep your budget updated. Draw inspectors often review your budget as part of the inspection. If your actual costs are significantly different from your budget, be prepared to explain why.
Framing inspection failures:
Prevention: Have your framing contractor review the framing inspection requirements before starting. Consider hiring a structural engineer to review the plans if you have any doubts.
Rough electrical failures:
Prevention: Use a licensed electrician. Electrical is not an area where DIY saves money — failed inspections and corrections cost more than hiring a pro.
Rough plumbing failures:
Prevention: Use a licensed plumber. Like electrical, plumbing failures are expensive to correct.
Final inspection failures:
Prevention: Walk through the entire house before scheduling the final inspection. Check every item on your building department's final inspection checklist.
Every time you pass an inspection, get a copy of the inspection record and add it to your construction loan documentation. Your lender will want to see:
DrawBridge lets you log every inspection with all of this information and attach the inspection record document. When you submit a draw request, your bank can see all the inspection records for that phase in one place.
Inspections are a critical part of both the building code compliance process and the construction loan draw process. The most important things to remember:
DrawBridge organizes everything your bank needs — from photos to lien waivers.