Rehab Costs Budget question

[Andrae Warren]

Good afternoon,

I am in the process of purchasing a home which requires a rehab/repair budget.  The lender will be doing a holdback of the budgeted amount, and I am curious as to how this process will work in terms of actually paying the vendor for services completed?

My repair budget has different Draws timelines for me to chose, but I am unsure if I only need one draw or multiple draws.  The Vendor requires a deposit to start work which means I would either be fronting the money upfront then looking to get reimbursed later, or will the lender provide the money upfront to get started.  Most things I have read say that lenders usually send someone out to inspect work completed and release funds only after it has been approved.  Can someone provide clarity here?  I have done several deals where I just do the work myself outside of closing, but this is the first one that I am doing using a repair budget.  Any information provided would be greatly appreciated. 

Thanks in advance,