materials funds requests
Most lenders release funds in draws tied to verified progress. Sometimes, your builder may need a small draw for materials before that phase starts. That’s acceptable if it’s done transparently.
This guide was built in partnership with the AIA.
It was fact-checked by licensed professionals and building experts.
Consult a builder or architect for specifics to your situation.
what to require
Proof of purchase: Invoices or supplier quotes showing what’s being ordered and for how much
Ownership clause: Make sure your contract states that once paid, those materials belong to you, even if they’re off-site
Escrow release note: Ask your lender to release payment directly to the supplier when possible - it’s safer for both sides
Pro TIP:
Always have your contractor’s payment requests match the same draw schedule your mortgage company uses.
If they’re asking for money outside that system, slow down and check with your lender first.
when it’s a red flag
It’s risky if your contractor:
Demands funds before your lender has approved or inspected progress
Asks for a large “mobilization” or “materials” payment without documentation
Says they “can’t start without a check in hand” before the draw process begins
Your lender’s oversight may feel tedious, but it’s your built-in safety net. Every legitimate builder working in post-disaster recovery is familiar with this process.
how to say it
If your contractor pushes for money early, try this:
“My lender releases payments through escrow once work is verified. If you need an advance for materials, we can set up a small draw with supplier documentation so it clears quickly.”