How to become a mortgage broker
Where the real estate industry is concern, mortgages brokers are a major cog in the wheel. For those of you who want to launch a career as a mortgage broker, you can be sure that the outlook is positive. Before we find out how to become a mortgage broker, let us look at what the job of a mortgage broker entails.
What a mortgage broker does
Rob Campbell, mortgage professional can tell you that a mortgage broker is not the person who actually lends you the money. He only serves as a link between the borrower and the lender. Asserts finance writer Kristina Tucker, ‘a mortgage broker is a contractor who analyzes mortgage loan products and counsels customers on loan availability, qualification requirements, interest rates, and terms.’
How to become a mortgage broker
- Complete related courses
Completing high school is the minimum level of education needed to work as a mortgage broker. However, it is not that simple. You also need to be able to conduct research and go over financial documents. If you want to be a successful mortgage broker, skills in math and computer use can come in handy.
- Education in pre-licensure
In accordance with the 2008 SAFE Act, you must be licensed if you are a mortgage broker. Guidance on getting the licensure can be obtained from the National Mortgage Licensure System. To get your license, it is necessary for you to finish a 20 hour pre-licensure program, after which you have to pass the mandatory exam. The education program will arm you with knowledge on mortgage origination, loan officer ethics and the laws and regulations.
- The SAFE Mortgage Loan Originator test comes next
The SAFE Mortgage Loan Originator test has to be passed after you complete your pre-licensing education. By and large, the tests are made up of two sections; the national and the state. The national part is uniform for all mortgage brokers in the country.
- Registering your business name and company
To apply for your license as a mortgage broker, you need to register a business unit or entity. A vital step in the proceedings is choosing the type of company you would like to run. To do this, try and gauge your particular business plan and the number of owners in your business. Basically, the common choices are partnership, limited liability company or sole proprietor in case you are alone. Select a name that is not only unique but catchy for your company. Now you can approach your state business license authority and register.
- The mortgage broker license is the next step
Once your basics are in place, you can fill in your licensing application form and use the NMLS platform to make your submission. You can start working as a mortgage broker now.
It is a good idea to talk to people who are in the business before you begin. That way you will waste less time and be more organised. While you are at it, do a thorough research so you know which lender will be supportive to a broker who is new.
