--- title: Words Matter - Never Approve Your Builder - Trinity Online description: Learn why words matter in construction contracts. Discover the importance of precise language to avoid unintended builder actions & ensure project success image: https://www.trinityonline.com/hubfs/Words-matter-never-approve-builder-graphic%20%281%29.webp --- [ Blog ](https://www.trinityonline.com/blog) - Browse Topics - [Single Family Construction Support Services](https://www.trinityonline.com/blog/tag/single-family-construction-support-services) - [Commercial Services](https://www.trinityonline.com/blog/tag/commercial-services) - [Loan Administration Services](https://www.trinityonline.com/blog/tag/loan-administration-services) - [Events](https://www.trinityonline.com/blog/tag/events) - [Solutions](https://www.trinityonline.com/blog/tag/solutions) - [General](https://www.trinityonline.com/blog/tag/general) - [Company](https://www.trinityonline.com/blog/tag/company) - [Construction lending](https://www.trinityonline.com/blog/tag/construction-lending) - [Draw Inspections](https://www.trinityonline.com/blog/tag/draw-inspections) - [infrastructure](https://www.trinityonline.com/blog/tag/infrastructure) - [Asset Monitoring](https://www.trinityonline.com/blog/tag/asset-monitoring) - [Affordable Housing](https://www.trinityonline.com/blog/tag/affordable-housing) - [Borrower](https://www.trinityonline.com/blog/tag/borrower) - [Draw Inspection](https://www.trinityonline.com/blog/tag/draw-inspection) - [Housing Market](https://www.trinityonline.com/blog/tag/housing-market) - [Inspections](https://www.trinityonline.com/blog/tag/inspections) - [Press Releases](https://www.trinityonline.com/blog/tag/press-releases) - [construction loan administration](https://www.trinityonline.com/blog/tag/construction-loan-administration) Receive our latest articles directly to your inbox. Subscribe - [Loan Administration Services](https://www.trinityonline.com/blog/tag/loan-administration-services) February 19, 2021 # Words Matter - Never "Approve" Your Builder [Brad Meyer 1 min read ](https://www.trinityonline.com/blog/author/brad-meyer) Share this article: - - - - ![close up of hammer surrounded by bent nails sticking out of board](https://www.trinityonline.com/hs-fs/hubfs/Words-matter-never-approve-builder-graphic%20%281%29.webp?width=650&height=470&name=Words-matter-never-approve-builder-graphic%20%281%29.webp) ***By Brad Meyer, CEO and President, Trinity Real Estate Solutions *** The English language offers nearly one million words for its use (988,968 to be exact), and surprisingly, few are used in exactly the same meaning or in similar contexts. Generally, every statement has precise significance, and we can apply this principle when a lender is working or “approving” specific builders. In society, approval is a common word, which everyone is familiar. As a young adult, one applies for credit and is either approved or declined. When applying for college, a person is either accepted or rejected. When seeking employment, an individual is either hired or denied. So, when a home builder completes a “builder application” for non-builder credit lines, naturally a lender would “approve” the builder, right? Wrong. When a lender “approves” a builder, it can create a hidden liability for that lender. Often, a borrower receives the unintended impression that he or she may rely on the lender for “approval” of the builder. However, if a construction project falters – for example, the builder walks off the job or misuses funds – the borrower often places Consequently, we recommend lenders use a “builder registration” or “builder registration application” form (builders applying for a credit line complete different documents) when processing a construction loan. After a lender (or Trinity) researches and finalizes builder research, they can “register” the builder if said builder meets all of the required criteria. Moreover, just as draw inspections are for the lender’s use to confirm construction progress prior to funding, a builder registration form provides lenders detailed information and confirmation about a builder before allowing construction to start. In conclusion, borrowers should conduct their own builder research before signing a construction contract. But completing a builder registration form adds that additional layer of confirmation for the lender, mitigating lender risk and ultimately, serving them and their bottom line well into the future. For more information about Trinity’s [Builder Information Report](https://www.trinityonline.com/loan-administration/), please [contact us](https://www.trinityonline.com/contact/)! We’d love to speak with you.   ## Topics discussed - [Single Family Construction Support Services](https://www.trinityonline.com/blog/tag/single-family-construction-support-services) - [Commercial Services](https://www.trinityonline.com/blog/tag/commercial-services) - [Loan Administration Services](https://www.trinityonline.com/blog/tag/loan-administration-services) ## Related Posts [![](https://www.trinityonline.com/hs-fs/hubfs/Imported_Blog_Media/construction-lender-national-blog-image.jpg?width=450&height=250&name=construction-lender-national-blog-image.jpg) Loan Administration Services Five Reasons to Hire a National Draw Inspection Company Construction loans have long been described as a “mixed bag.” While these short-term loans … Read More 2 min read ](https://www.trinityonline.com/blog/five-reasons-to-hire-a-national-draw-inspection-company) [![](https://www.trinityonline.com/hs-fs/hubfs/Imported_Blog_Media/COVID-and-construction-2-scaled.jpg?width=450&height=250&name=COVID-and-construction-2-scaled.jpg) General “Our New Normal" – Three Ways COVID-19 Has Changed Construction By Brad Meyer, CEO and President, Trinity Real Estate Solutions With the onslaught of COVID-19, our … Read More 2 min read ](https://www.trinityonline.com/blog/covidconstruction) ### Subscribe Here! close ### Subscribe Here! ![](https://px.ads.linkedin.com/collect/?pid=9376028&fmt=gif) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Brad Meyer", "url" : "https://www.trinityonline.com/blog/author/brad-meyer" }, "dateModified" : "2024-07-24T16:26:51.118Z", "datePublished" : "2021-02-19T11:33:41.000Z", "headline" : "Words Matter - Never Approve Your Builder - Trinity Online", "image" : [ "https://www.trinityonline.com/hubfs/Words-matter-never-approve-builder-graphic%20%281%29.webp" ], "mainEntityOfPage" : { "@id" : "https://www.trinityonline.com/blog/words-matter-never-approve-your-builder", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.trinityonline.com/hubfs/primary-logo.svg" }, "name" : "Trinity + NWCC" } } ```