How to make sure a DSCR lender is legit

Private Lending & Conventional Mortgage Advice
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How to make sure a DSCR lender is legit

Nicholas A.
Buffalo Grove, IL · Member since 2017 · 54 posts · 39 votes
I found a property I will be closing on shortly, and am about to finance the deal, but before I proceed any further I want to make sure I am selecting the right financier to assist with the lending portion.

I found somebody on google a couple years back, kept in contact with him, and am leaning towards using him for financing the DSCR loan. I already gave him an application and he ran my credit once, so he has all my information, some sensitive information.

I am a bit hesitant, and maybe rightly so, maybe not, because I actually have never met him. I just found him on google. How can you vet somebody and make sure they are legit? 

I can provide the name of the company, I am just not sure if its appropriate to list them on a public forum like this as if they are legit, which they very well may be, I don't want to slander them. 

Any advice/thoughts would be greatly appreciated

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Devin PetersonBusiness Member
Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 667 votes
1y
Quote from @Nicholas A.:
I found a property I will be closing on shortly, and am about to finance the deal, but before I proceed any further I want to make sure I am selecting the right financier to assist with the lending portion.

I found somebody on google a couple years back, kept in contact with him, and am leaning towards using him for financing the DSCR loan. I already gave him an application and he ran my credit once, so he has all my information, some sensitive information.

I am a bit hesitant, and maybe rightly so, maybe not, because I actually have never met him. I just found him on google. How can you vet somebody and make sure they are legit? 

I can provide the name of the company, I am just not sure if its appropriate to list them on a public forum like this as if they are legit, which they very well may be, I don't want to slander them. 

Any advice/thoughts would be greatly appreciated


 Referrals, google reviews, social media, phone calls, and most importantly, an NMLS number! 

Doesn't hurt to have a bigger pockets account either lol!

I would recommend talking with an experience loan broker who can help you compare the terms across a wide variety of lenders!

[email protected]860-538-3672
ProAlpha Capital
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  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 667 votes
    1y
    Quote from @Nicholas A.:
    I found a property I will be closing on shortly, and am about to finance the deal, but before I proceed any further I want to make sure I am selecting the right financier to assist with the lending portion.

    I found somebody on google a couple years back, kept in contact with him, and am leaning towards using him for financing the DSCR loan. I already gave him an application and he ran my credit once, so he has all my information, some sensitive information.

    I am a bit hesitant, and maybe rightly so, maybe not, because I actually have never met him. I just found him on google. How can you vet somebody and make sure they are legit? 

    I can provide the name of the company, I am just not sure if its appropriate to list them on a public forum like this as if they are legit, which they very well may be, I don't want to slander them. 

    Any advice/thoughts would be greatly appreciated


     Referrals, google reviews, social media, phone calls, and most importantly, an NMLS number! 

    Doesn't hurt to have a bigger pockets account either lol!

    I would recommend talking with an experience loan broker who can help you compare the terms across a wide variety of lenders!

    [email protected]860-538-3672
    ProAlpha Capital
    WebsiteView Page
    3Reply
    • Jake YuskaitisBusiness Member
      Lender · New Jersey, USA · Member since 2022 · 254 posts · 67 votes
      1y
      Quote from @Devin Peterson:
      Quote from @Nicholas A.:
      I found a property I will be closing on shortly, and am about to finance the deal, but before I proceed any further I want to make sure I am selecting the right financier to assist with the lending portion.

      I found somebody on google a couple years back, kept in contact with him, and am leaning towards using him for financing the DSCR loan. I already gave him an application and he ran my credit once, so he has all my information, some sensitive information.

      I am a bit hesitant, and maybe rightly so, maybe not, because I actually have never met him. I just found him on google. How can you vet somebody and make sure they are legit? 

      I can provide the name of the company, I am just not sure if its appropriate to list them on a public forum like this as if they are legit, which they very well may be, I don't want to slander them. 

      Any advice/thoughts would be greatly appreciated


       Referrals, google reviews, social media, phone calls, and most importantly, an NMLS number! 

      Doesn't hurt to have a bigger pockets account either lol!

      I would recommend talking with an experience loan broker who can help you compare the terms across a wide variety of lenders!


      No NMLS needed for commercial DSCR

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    • Devin PetersonBusiness Member
      Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 667 votes
      1y

      @Jake Yuskaitis if you're a broker. If you lend any sort of money and have securitization you are required to have a license. Talking about the actual source not you 

      [email protected]860-538-3672
      ProAlpha Capital
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  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 984 posts · 643 votes
    1y

    Hi ,@Nicholas A., nice to meet you here on BP!! If you haven’t already, check if the lender is licensed to do business in your state (you can usually verify this through your state’s financial regulatory website or NMLS Consumer Access). Look up reviews on sites like BBB, Google, or Trustpilot, and see if they’re mentioned in any reputable real estate forums. You could also ask them for recent client references. If you're still unsure, consider running the deal by a local mortgage broker or lender you trust for a second opinion.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y

    What state is it in? 
    Never send a money to the lender always go through title company to send funds

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  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 939 votes
    1y

    @Nicholas A.

    Great question, Nicholas — definitely smart to pause and do some due diligence.

    A few ways to vet a DSCR lender:

    • Ask for references from other investors they’ve worked with. Legit lenders will have no problem providing this.
    • Check licensing — verify they’re registered with the NMLS (Nationwide Multistate Licensing System).
    • Look for online reviews or BBB accreditation — see if others have flagged red flags.
    • Trust your gut — if communication feels off or pressure tactics are used, that’s a red flag.

    Also, don't be afraid to compare offers from a few DSCR lenders just to benchmark terms and service. Better to spend a little more time upfront than deal with surprises later.

    [email protected]614-418-6081
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  • Andrew Zamboroski
    Lender · Member since 2021 · 495 posts · 130 votes
    1y
    Quote from @Nicholas A.:
    I found a property I will be closing on shortly, and am about to finance the deal, but before I proceed any further I want to make sure I am selecting the right financier to assist with the lending portion.

    I found somebody on google a couple years back, kept in contact with him, and am leaning towards using him for financing the DSCR loan. I already gave him an application and he ran my credit once, so he has all my information, some sensitive information.

    I am a bit hesitant, and maybe rightly so, maybe not, because I actually have never met him. I just found him on google. How can you vet somebody and make sure they are legit? 

    I can provide the name of the company, I am just not sure if its appropriate to list them on a public forum like this as if they are legit, which they very well may be, I don't want to slander them. 

    Any advice/thoughts would be greatly appreciated

    Does their company have information widely available online? If you found them from Google, they likely have a solid presence I presume. 

    Not all DSCR lenders or DSCR brokers have to be licensed (depending on the state requirements), so it does make it tougher to vet. 

    In the end, it comes down to the trust you may or may not have built over the years. I have worked with 100’s of people I have never met, so it is not uncommon in this day and age. Trust your gut and if anything fishy happens, listen to those warnings.

    Good luck!
    0Reply
  • Doug SmithPro Member
    Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
    1y

    DSCR Lenders/Brokers aren't required to be NMLS-licensed, but you might want to check anyway. We are, but we do a lot of consumer loans as well. If they have a consumer license, there is a certain level of regulation that, although, DSCR loans aren't part of that regulation, will allow you to know that at least they passed the smell test on the consumer side. Have you spoken to other investors? Try this link to see if they are consumer licensed at least: https://www.nmlsconsumeraccess.org/. 

    0Reply
    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      1y
      Quote from @Doug Smith:

      DSCR Lenders/Brokers aren't required to be NMLS-licensed, but you might want to check anyway. We are, but we do a lot of consumer loans as well. If they have a consumer license, there is a certain level of regulation that, although, DSCR loans aren't part of that regulation, will allow you to know that at least they passed the smell test on the consumer side. Have you spoken to other investors? Try this link to see if they are consumer licensed at least: https://www.nmlsconsumeraccess.org/. 


      they are if they are if they are in the 14 states that require licenses for 1 to 4 units all the others its exactly as you state..
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  • Deborah Wodell
    Lender · Sanford, NC · Member since 2024 · 348 posts · 116 votes
    1y

    Totally valid concern, Nicholas — good on you for being cautious. One way to vet someone is to ask for references from past clients or closings they’ve funded. You can also check if the company is registered with the state or if they’re listed with any lending or broker associations.

    If you're still unsure, it never hurts to get a second quote from another lender or broker just to compare terms and make sure everything checks out.

    0Reply
  • Todd KimeBusiness Member
    Lender · KY IL TN FL IN · Member since 2022 · 25 posts · 5 votes
    1y

    You can look them up on the NMLS website to make sure they are legit. 

    you can simply put their name in the system and it will tell you if they are currently licensed in IL.   

    [email protected]502-400-2345
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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1y
    Quote from @Nicholas A.:
    I found a property I will be closing on shortly, and am about to finance the deal, but before I proceed any further I want to make sure I am selecting the right financier to assist with the lending portion.

    I found somebody on google a couple years back, kept in contact with him, and am leaning towards using him for financing the DSCR loan. I already gave him an application and he ran my credit once, so he has all my information, some sensitive information.

    I am a bit hesitant, and maybe rightly so, maybe not, because I actually have never met him. I just found him on google. How can you vet somebody and make sure they are legit? 

    I can provide the name of the company, I am just not sure if its appropriate to list them on a public forum like this as if they are legit, which they very well may be, I don't want to slander them. 

    Any advice/thoughts would be greatly appreciated


     Just call them and go over the process with them. Have him set expectations for you. You can also look up google reviews, online presence, etc.. 

    They can be licensed, but still not be a good person to conduct business with. I would suggest interviewing multiple lenders to give you a peace of mind 

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  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    1y

    Google Reviews and Bigger Pockets References are a great place to start. There are a handful of DSCR lenders here on BP with hundreds of reviews.

    [email protected]818-606-8823
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  • Salvador Auciello
    Lender · Irvine CA · Member since 2019 · 71 posts · 22 votes
    1y

    Hello Nicholas,

    For DSCR loans there are a few States that require NMLS license such as Oregon, California, Nevada, Arizona. Now keep in mind you are not going to give the loan officer/ broker any money like Ernest money deposit or any funds other than if they will pull credit.

    Now if you work with a direct lender some don't ask you for money to pull your credit. 

    You do have to be careful on who you work with due to the fact you will be giving up social security number and other identity items.  Find reviews and or shop and compare ultimately go with your gut. 

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