How to Become a Mortgage Loan Officer- Education and Career Roadmap?

A mortgage isn’t just a financial loan. It is a way in which a family gets a paradise to live, a restaurant owner gets a space to fulfill their dream of serving their favorite recipes, and a small business owner gets a place to bring their vision to life.

Very few people pay for their real estate property out-of-their-pocket. And that’s when they approach a mortgage loan officer who only takes a stroke of their pen to help people purchase real estate.

If you’re keen on dealing with finances, this job profile can be a lucrative career path for you. While several people are involved in the loan process, loan officers are a vital part of the industry. These professionals initiate fee-based mortgage loans by generating revenue for financial institutions while helping borrowers get the required funding.

Becoming a loan officer can be a wise decision. These experts enjoy flexible schedules, steady demand, and lucrative pay for their services. Thereby, if this career interests you, seize the opportunity by knowing some steps for kickstarting your journey.

Here’s a guide to help you pave a path to a financial career. Keep reading to learn more:

What is a Mortgage Loan Officer?

The person with this job profile is a financial professional who helps individuals and families get loans to buy real estate. Their role rests with checking the clients’ credit to determine their eligibility for borrowing money. For example, a first-time homebuyer must reach out to a professional. The buyers can submit an offer for a house space only after the officer checks their eligibility.

What Does the Professional Do?

The mortgage officer focuses on real estate loans for individual buyers and businesses. They work for commercial banks, mortgage brokers and companies, or credit unions. These officers work in an office or travel to different places to meet prospective borrowers.

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Some day-to-day tasks of a loan officer are:

  1. Developing relationships with the best real estate companies.
  2. Assessing the creditworthiness of potential borrowers.
  3. Discussing the loan options with potential borrowers.
  4. Ensuring that loan agreements adhere to the federal and state regulations.
  5. Keeping records of mortgage transactions and loan applications.
  6. Apt coordination with underwriters to determine the potential borrower risks.
  7. Working with appraisers to get an accurate market value for a property.

Reading the points mentioned above may help you get a deep insight into the loan officer’s role.

What are the Steps to Become an Excellent Mortgage Loan Officer?

If these day-to-day tasks excite you, it is worth looking at this job profile. Knowing some steps of becoming a finance professional can be a wise step. Let’s get going with discovering the final walkthroughs into establishing a sound career.

For becoming a professional, you will have to obtain a mortgage loan originator license- or an MLO license as a prerequisite for successfully pursuing this career. Mentioned below are the steps to meet the licensing needs. Know that these play a pivotal role in working for a mortgage lending institution.

Some of these are:

  • Complete General Education Requirements:

A person has to complete the same general education courses to obtain a high school diploma or a GED to become a mortgage loan officer. You can undergo a training program through a course or earn a bachelor’s degree- particularly in finance, business, or others.

  • Gain Work Experience:

It is wise to find an entry-level job in a banking or general financial field before obtaining a license. By doing this, you’ll pair the education with relevant work experience. You can know if this industry is the best fit for you or not. Work experience may help you associate with a mortgage lending company that may train you to appear for the licensing exam.

  • Prepare for the Exam:
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Reap the benefits of a pre-licensing course and licensing exam preparation resources to gain knowledge for the national test. The coursework is prepared extensively for mortgage loan officer training and may help you succeed.

  • Secure Licensure:

The candidate will have to take the final national exam, which a regulated body conducts. After taking this exam only, you will call yourself a licensed loan officer. The best part about this exam is the ease of reappearing after 30 days if you cannot pass your test the first time.

Following these steps, you’ll be able to create a successful career path to becoming a loan officer. All you’ve to do is adhere to the requirements!

How Long Does it Take to Become a Loan Officer?

Becoming a successful working professional depends on your education and experience. The absence of an undergraduate degree or banking experience may take longer. You will have to hit the books for around four years to obtain a bachelor’s degree.

If pursuing a bachelor’s degree is not on your mind, you will have to spend two to five years working in a financial institution. During this time, you will have to polish your skills, learn about the industry, and build relationships with your industry.

Even after completing your education or gaining years of work experience, it may take you weeks or months to obtain a license. The time duration also depends on whether you pass the NMLS exam with a score of 75% or higher. If not, you’ll have to wait for 30 days to reappear for the test.

How Much Does the Mortgage Officer Earn?

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Mortgage loan officers usually work on a commission. Others may earn either flat salaries or earn a salary and commission. While the risks associated with commission-based pay are many, there shouldn’t be room for discouragement.

According to a resource, the median salary for a professional is around $66,325 per year. However, the lowest-earning officers earn approximately $42,488, and the highest pay is more than $89,000.

Know that the salary depends on the number of fee-based loans you close. The more you do, the higher your incentive to market yourself to prospective borrowers will be.

How to Find a Job?

Now that you’re aware of the know-how of becoming a mortgage loan officer, you will have to pitch yourself. Start with building a solid resume and a cover letter for maximizing your chances of getting hired. Ensure that employers are looking for top qualities in a loan officer.

The Verdict

Know that the job of a mortgage loan officer is trending, especially when people are keen on possessing their own house. If you’re planning a career as a professional, it is wise to polish your skills to stand out from the crowd.

After all,

“It’s not what you achieve, it’s what you overcome. That’s what defines your career.”

—Carlton Fisk