Oh, you sent in an Application for a DSCR Loan?? This is what Lenders will look at!

[Tyrell Proby]

Here are some key factors that most Lenders consider when evaluating a DSCR Loan Application:

Property Income: Your rental property should generate enough income to cover all the expenses, including the loan payment. Think of it like feeding a big family with one paycheck - you need to make sure everyone's needs are met.

Property Expenses: Lenders want to make sure you're not spending more money than you're making. They'll look at your expenses such as property taxes, insurance, maintenance, and vacancy rates to ensure you have enough money left over to cover the loan payment.

Borrower Experience: Lenders want to know if you have experience managing rental properties, so they'll look at your past history to see if you have a track record of success. It's like a job interview - they want to know if you have the skills to succeed.

Credit Score: Your credit score is like your financial report card, and lenders want to see a good one. A high credit score tells them that you're responsible with your finances and have a history of paying your debts on time.

Property Location: Lenders may also consider the location of the property to assess its potential value and risk. They'll want to know if the area has a strong rental market and if there are any potential hazards that may affect the property's value or income potential.

Overall ;) - make sure your property is bringing home the bacon, your expenses aren't too high, you're an experienced landlord, your credit score is top-notch, and your property is in a great location. Easy, right?