How to make sure a DSCR lender is legit

Question

Devin Peterson · Answer

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!

Chris Seveney · Answer

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

Denise Supplee · Answer

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.

Salvador Auciello · Answer

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.

Arman Ahmed · Answer

@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.

Alex Bekeza · Answer

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.

Erik Estrada · Answer

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

Devin Peterson · Answer

@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

How to make sure a DSCR lender is legit

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