Question

When financing new construction, the lender usually releases the final payment to the builder:

A) After the foundation is laid
B) Before construction begins
C) Upon project completion
D) During the design phase

Answer 1

The lender usually releases the final payment to the builder upon project completion when financing new construction.

Step-by-step explanation:

1. After the foundation is laid
2. Before construction begins
3. Upon project completion
4. During the design phase

The correct answer is Upon project completion. The lender typically releases the final payment to the builder after the construction project is completed. This ensures that the builder has fulfilled all the requirements and the project is ready for occupancy. Financing new construction is a crucial aspect of the construction industry, as it allows builders and developers to fund their projects and move forward with the construction process.