How to Track Multiple Loan Bids with a Loan Quote Matrix

Create your own micro capital market.  How? Get more than one loan bid.

Two quotes provides something to compare so do yourself a favor by asking at least two lenders to bid for your loan business.  If you have more than one competing lender then you’ll need to track the bids.

You can do this by maintaining a current loan quote matrix.  Create a simple spreadsheet to track bids from lenders.  Include basic information such as:

  • lender name, loan officer, phone number and the date you submitted your loan proposal to the lender.
  • Record any funding requirements in the bid like maximum loan to value (LTV) and minimum debt service coverage (DSCR) tests.
  • Track the quoted loan amount, interest rate and fee structure.
  • Look for any required reserves such as property taxes, insurance and capital improvements.
  • Make adjustments to the stated interest rate to account for fees and reserves so you are comparing like loan terms.

There are many other terms in the lender terms sheet to track during the bid process.  The loan quote matrix will help you monitor the loan bid process and quickly compare quotes to select a winning bid.


About Michael Shelton

Your Business Coach Facilitating Delegation and Work Group Engagement Michael Shelton has over twenty-five years of business and military accomplishments, including extensive experience with one of the largest, publicly traded real estate investment trusts (REIT). He is a qualified business coach with assignments in cross-functional work group management, strategic planning, unit leadership, joint venture acquisitions, executive education, mentoring, training and merger integration. Michael has accumulated best practices for building committed work groups from more than $4 billion of capital markets transactions and commercial property development. He served as a commissioned officer and helicopter pilot in the U.S. Army, and earned his MBA from The University of Arizona. Michael has served as a major conference panelist and is the author of Cash Flow Rich, Winning Ways to Evaluate and Finance Real Estate. Today, he helps business owners get more work group engagement as President and CEO of Shelton Business Services, LLC in Scottsdale, Arizona. Disclaimer: I don't offer investment, legal or tax advice. Talk to your broker, accountant or lawyer for investment, tax and legal help. I might own stock in the companies I mention on-line. My posts, tweets and other on-line activity are my personal thoughts and don't represent my employer or company.
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