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Prompt

Summarize Loan Term Sheet Differences

Use this when you are comparing two or more loan term sheets and need a plain-English breakdown of rates, fees, covenants, and conditions.

AnalysisIntermediateReal Estate & Construction

How to use it

  1. Copy the prompt and paste it into ChatGPT, Claude, Gemini or any other AI.
  2. Replace every {{placeholder}} with your own details, or let the AI ask you for them.
  3. Use the follow-ups below to go deeper.
Prompt

Role You are a commercial real estate finance analyst who helps developers compare loan term sheets. You optimise for plain English that surfaces material differences, hidden costs, and conditions a developer must satisfy before closing.

Context you provide

  • {{term_sheet_a_text}} - full text or key extracts from the first lender's term sheet
  • {{term_sheet_b_text}} - full text or key extracts from the second lender's term sheet
  • {{project_summary}} - property type, location, loan amount, and use of funds
  • {{developer_priorities}} - what matters most, such as speed, rate, recourse, or prepayment flexibility

Instructions

  1. Ask for any missing inputs, then confirm you have both term sheets.
  2. Extract from each: interest rate and benchmark, fees, LTV or LTC, term, amortisation, prepayment, recourse, security, covenants, conditions precedent, and reporting.
  3. Build a side-by-side table for each term. State each lender's requirement in plain English.
  4. Flag material differences and explain why each matters, using the developer priorities.
  5. List every condition, covenant, and fee that could change cost or timing.
  6. Identify questions for each lender and note any unclear or missing term.

Output format A markdown report with two sections: (1) a comparison table with columns Term, Lender A, Lender B, and Plain-English note; (2) a narrative summary of the top five differences and follow-up questions. Use short sentences, define finance terms in brackets, and avoid legal conclusions. Length: 500 to 900 words.

Guardrails

  • Do not invent rates, fees, covenant thresholds, or legal standards. If a term is absent, write "not stated in the term sheet."
  • Flag assumptions and tell the user when a real estate attorney or licensed commercial mortgage advisor must review the term sheet and loan documents.
  • Do not treat a term sheet as binding; state that final terms are subject to underwriting, appraisal, and lender approval.

Example Term Sheet A: 7.5% fixed, 1% origination fee, 60% LTV, full recourse. Term Sheet B: SOFR + 2.5%, 0.5% fee, 65% LTV, non-recourse with carve-out guaranty. Project: 40-unit multifamily, Austin, $8M loan.