Paying for the work: deposits, draws and financing

The deposit

A deposit covers materials and secures your place on the schedule. Ten percent to a third is typical; several states cap it by law. Never pay in full before the work starts, and be careful with a Pro who wants half or more up front.

Progress payments

On a project that runs more than a week or two, payments tied to milestones are normal: after demolition, after rough-in passes inspection, after drywall. Each payment should be for work you can see is done.

The final payment

Hold it until the punch list is complete and, on a big project, until you have lien waivers from the contractor and major suppliers. This is your only leverage at the end, so do not give it up early.

Financing

Contractors often offer financing through a partner. Compare the rate and the fees with a home equity line or a personal loan from your own bank. Watch for deferred-interest offers: if any balance remains at the end of the promotional period, interest is charged back from day one.

Paying by card

Many Pros take cards and ACH through their invoicing platform. HomeMaxx Pros send invoices you can pay online, and the standard warranty issues automatically when the invoice is paid in full.