Self-Evaluating Mortgage Loan Worthiness

[Steven Embree II]

I would like to evaluate all options for purchasing a second rental property. Among those options is applying for a mortgage loan. However, rather than just go out and submit an online application for a mortgage loan pre-approval and submitting my SSN for a hard hit on my credit score, I’d like to better understand, in as much detail as possible, what it is mortgage lenders are looking for while evaluating mortgage loan applications. In doing this, I would be able to evaluate myself long before I ever approach a lender and would be able to better understand the limits of what I can reasonably expect to be approved for given my circumstances. Then, once I’ve best calculated my financial reach, I can walk up to a lender with all proper paperwork in hand and get the process started.

My current understanding is:
1. Credit Score (FICO 5,4,&2 - Middle Score)

2. Cash Reserves On Hand

3. Down Payment

4. Debt To Income Ratio

Are there any lenders out there that would be able to better describe the process for me or point me in the direction of where I can find out the specifics of where this is done. 

DISCLAIMER: I have done a reasonable search on BP and I’m surprised that I haven’t been able to find this information in a post up to this point. However, I freely admit that I may have overlooked a post just like this. If there is one, I’d be happy to be pointed to it so long as it’s still relevant.

Thanks everyone!