Is Becoming a Mortgage Broker For You?

become a mortgage lender


If you’re considering a career in real estate, one possible choice is becoming a mortgage broker. What does a mortgage broker do, you ask? Well, mortgage brokers work for clients (who are looking to purchase either private residences or commercial property) to research, find, and secure the best mortgage interest rate and loam terms. Interest rates are ever-changing, so the research is ongoing.

Qualifications For a Mortgage Broker

What are some qualifications that are useful when becoming a mortgage broker? As will most jobs, proficient verbal and written skills, as well as well-rounded personal skills are must-haves. A good grasp of math, especially with financial, sales, and marketing concepts is also a must-have. You have to be able to explain financial concepts to your clients, as well as have a familiarity with credit and lending. Because you will be seeking clients, it’s also really helpful to have an outgoing personality.

It’s also very important to note that being a mortgage broker can call for long hours in search of lenders for clients. It is also not typically a Monday through Friday, 9 to 5 job, as most of your clients are not going to be available for the day as they will often be at work. In other words, mortgage brokers have to be accommodating with their clients’ schedules.

Its All About Effort

Sadly, this is not a job you can just get if you try hard enough—you have to have a high school diploma, 20 hours of training, and a good foundation of knowledge in the finance and economics world. It would even be helpful to have a base of accounting and law knowledge. For that last one, there are many opportunities to improve your knowledge base with online courses.

What About a Salary?

mortgage brokers salary

So how do mortgage brokers make money? Depending on whether you work independently or for a firm, you may or may not earn a salary as a mortgage broker. There is additional compensation based on the mortgages and loans you are able to secure for your clients. Starting out, you might not bring in as much as an experienced broker. Mortgage broker salaries (depending on location, experience, success, and if you are a mortgage broker or a loan officer etc.) can range anywhere from low $30,000 a year to near $80,000 a year. Again, dependent on location and success, you can earn commissions upwards of $100,000 in addition to that salary.

Getting Your Mortgage Broker License

mortgage lendingSo how do I become a mortgage broker? Well, the industry is heavily regulated and each state is going to have its own requirements for this. First thing, in every state, you have to get your mortgage broker license and bonded. The exam is given by the National Mortgage Licensure System (NMLS), and is called the SAFE Mortgage Loan Originator Test.

This exam has state-specific questions, as well as a large portion of national regulation questions. There are many resources online to help with exam prep.

Important to note, the mortgage broker exam fees are a fixed amount for all brokers regardless of which state you are in. The national component costs $110, and the state component is $69.

Assuming you’ve passed the exam and gotten your mortgage broker license, many states in the U.S. require that you also obtain a broker bond. What is a broker bond? It’s a type of surety bond that acts as a protection for your clients (the future homeowners) in the case that you are found to be doing business fraudulently. Which, of course, you won’t… right?

The bond works the same as insurance does—you pay an annual premium to be covered for a certain state-required amount. The cost you’ll pay depends partly on the amount of the bond and your credit score.

Sounds Tough Doesn’t It?

Still interested? Great! So take some time to research the specific requirements in your state for becoming a licensed and bonded mortgage broker. Make sure that you complete all of the requirements, pass that exam, and you’re on your way to a successful and fulfilling career in real estate as a mortgage broker.

Congratulations, now you are licensed and bonded to be a mortgage broker in your state. Don’t forget, you have to renew your license and bond annually, and in most states even have to take required continuing education hours. Also not to be forgotten is that if you are planning to operate in multiple states, you have to have a license for each of them—that can add up!


Recent Articles

Texas Mortgage Education

Texas Mortgage Education


Image result for texas mortgageTexas home mortgage loan can be yours for the asking. Just do your homework initially, make sure you have a decent credit history, get a deposit in hand for the house you want to purchase, and after that contact an excellent home mortgage broker. Remember that a home loan broker can just earn money when he or she finds you a loan, and helps in the state of Texas of getting a Texas mortgage loan. If you live in Texas, and you are in the market for a home, see with a mortgage broker and he or she will assist you determine what Texas home loan you presently qualify for. A mortgage broker functions as an intermediary in between you and home mortgage loan providers, assisting you find the ideal mortgage item for your needs. Brokers might work independently, be associated with a loan provider, or really be staff members of lenders. A home loan broker or any other loan provider will typically have paperwork for you to complete and questions to solution to see how they can best assist you. Lot of times they will permit you to go through this procedure online. If you have concerns, make sure to request for assistance.


Image result for mortgageA good place to begin looking for home loan brokers in Texas is in your local chapter of the Texas Association of Mortgage Brokers. Getting a Texas home loan for you are financially helpful to the home mortgage broker or lender, so they will utilize their experience to assist you fill out the forms properly. At this time the mortgage broker will likewise run a credit check, describe it to you and reveal you how you can make improvements in your scenario in order to much better get a Texas mortgage loan. Texas mortgage programs will still ensure you can benefit from the house value gratitude’s presently on an upward trend in this state. Texas home mortgage loan companies can be agents in between the client and the lending institutions or they can be the lending institutions also. An educated mortgage company would have the ability to offer ideal loan options like lower rates for customers with excellent credit score or no-income verification loans for self-employed individuals having excellent credit history.


Image result for mortgage

Texas home mortgage loan companies likewise use refinance home loan for clients who are planning to decrease their current loan burden. There are numerous sort of mortgage readily available in Texas: FHA (Federal Housing Administration) loans, debt consolidation loans, land loans, standard loans, balloon loans and unique loans like difficult equity loans, interest just loans, 100% money out refinance, building loans, business mortgage, farmers home mortgage, no PMI (Personal Home loan Insurance coverage) loans, vacant land and acreage mortgage and cross- collateralize of properties.However, lots of people get preapproved for a loan, either online or offline before they are ready to buy and that expedites the process of getting a Texas mortgage. Saving time is constantly an advantage. Whatever technique you choose, getting a Texas mortgage is much easier than ever, so enjoy your brand-new house.

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Louisiana Mortgage Education

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Louisiana Mortgage Education – Maybe you’re purchasing your very first house in Louisiana, or possibly you’re relocating to Louisiana from another state. In any case, it is essential that you inform yourself on Louisiana home mortgage before buying a house. This post explains exactly what you’ll require to know before purchasing a home in Louisiana: The typical price of a home in Louisiana is $111,200, and houses Image result for mortgagein Louisiana appreciate at less than half of the rate of the typical national home gratitude. The rate of task development in Louisiana is well below the national average. In fact, income levels in lots of parts of Louisiana are too low to purchase a median-priced home with a conventional loan. Average interest rates on home loans in Louisiana are simply. 01% higher than the nationwide typical interest rate. House prices in Louisiana can vary significantly between zip codes. For example, in the summertime of 2005, the median rate of a house in New Orleans, Louisiana, was $148,000; however, the typical rate of a home in Baton Rouge, Louisiana, was $450,000. Louisiana has the strictest mortgage financing laws of all 50 states. The Louisiana Fair Lending Act prohibits the financing of credit insurance and financial obligation cancellation protection and limits both late and payoff charges. Louisiana positions restrictions on all house loans instead of the high-cost loan arrangements of other states with equivalent anti-predatory financing programs. Louisiana’s Second Home loan Loan Program uses down payment loans at 0% interest to authorities officers, firemen, teachers, and health care employees. Louisiana also has a Fair Housing Law that restricts home loan discrimination versus anybody due to the fact that of their race, color, gender, religion, familial status, or national origin.


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