How to Become A Mortgage Loan Officer (Complete guide)

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One of the numerous well-paying careers out there is a Mortgage Loan Officer. Have you been seeing a mortgage loan officer out there and you feel it is easy to become one? Or are you the inquisitive type who would love to know what it takes to become a mortgage loan officer? Irrespective of where you belong, you are reading the right piece.

This is a must-read for anyone who loves real estate and anyone who loves to explore. In this article, you’d get enlightened on who a mortgage loan officer is, a complete guide on how to become one, and the salary attached. Without wasting much of your time, let us explore this career.

Who is A Mortgage Loan Officer?

Have you ever purchased a house or do you have the dream of purchasing a house? If yes, A mortgage loan officer is that guide in human form that helps you pick the best financial options when you need to purchase a house.

He or she is a professional who gives you direction on the type of loans available for you when you need to purchase a home alongside its interest rates.

You can find them in can’t or mortgage companies as you seek direction about home loans.

What Does a Mortgage Loan Officer do?

A mortgage loan officer has so many responsibilities, but the primary responsibilities include;

Gather the financial information of clients for a loan which includes; taxes, debts, etc,
Enlighten clients on loan options suitable for them,
Accessing potential homebuyers through different channels such as; advertising, seminars, etc,
Keeping detailed and accurate factual documents on mortgage transactions,
Organizing with other real estate professionals, like home appraisers and underwriters,
Obeying confidentiality policies and privacy laws throughout the mortgage application process, etc.

How to Become a Mortgage Loan Officer

To become a mortgage loan officer is not much of a difficult task in as much as you are willing to become one. Below are the following steps;

The Basic Requirements

The requirements here include a minimum of 18 years of age, possessing a GED or high school diploma with a math and finance class score.

Go Through Pre-licensure Courses

You are expected to take some prelicensure courses by the National Morgage Licensing Service for you to get a deeper understanding of the career. These courses take about 20 hours to be completed with the below topics to be covered;

Federal law and regulations (3 hours),
Ethics with sections about fraud, fair lending, and consumer protection issues (3 hours),
Training related to lending standards in the non-traditional mortgage product market (2 hours),
Instruction on mortgage origination (12 hours).

Some other required courses include; mortgage lending laws of your state alongside some other state by state educational requirements

Obtaining a Mortgage Origination License

On completing the courses, you are to proceed with getting licensed. However, you need to find out the requirements to be licensed in your state because the requirements vary for each state, this also includes license fees.

Pass the Secure and Fair Enforcement Act Mortgage Loan Officer Test

You must pass the test with a score of 75% to be licensed. This test is to subject your knowledge of federal and state mortgage-leading laws to test. Nevertheless, if you fail, you are allowed t take the test again after 30 days.

Fulfill all Retirements

There are various requirements which include;

Registering with the National Mortgage Licensing Service,
Provide authorization for a credit report with a strong history,
Fingerprints for a criminal background check,
Prove the accuracy and completeness of the information you have provided,
Reveal any charges from financial regulatory agencies,
Provide 10 years’ worth of financial services employment history,
Present several types of identification information.

Other requirements include:

Sponsorship

Your employer must sponsor and supervise your duties as well as the regulatory body If your state must accept your sponsorship.

National Mortgage Licensing Service Unique Identifier

This is a number you must have to be able to track companies and licensees that are listed for advertisers on mortgage origination services.

Maintain active licensure

Once you are licensed, you must be active by updating all your information.

Further your education

For license renewal, you must finish the eight hours coursework approved by the National Mortgage Licensing Services every year. This course includes;

Regulations and federal law (3 hours),
Ethics coursework on fraud, fair lending and consumer protection (2 hours),
Training on lending standards for nontraditional mortgage product market (2 hours),
Mortgage origination services on state-specific courses (1 hour).

Gain experience

After all righteousness of education is fulfilled, you must gain experience either by working or volunteering as a Mortgage loan officer. You can work with a company or independently, depending on what works for you.

That is all it takes to become a mortgage loan officer, however, there are some skills needed.

Additional Skills For A Mortgage Loan Officer

Interpersonal relationship skills

As a mortgage officer, you’ll meet with different clients that you’d explain details to, this skill is needed for you to connect and relate with every client you meet. Without these skills, you will look bored to clients.

Multitasking and Organizational Skill

This is an important skill required if you need to work on multiple loans as well as combine work with your education.

Attentiveness skill

You need this skill since you would be working with numbers, so you need to learn how to pay attention to every single detail so you do not mismanage figures.

Financial skills

You must have good knowledge about money, income, credit score, etc to be able to guide your clients in each of their decisions because you can’t give what you don’t have.

Salary of a mortgage loan officer

Are you concerned about your salary as a mortgage loan officer? Worry not, because you are bound to be paid well, although there is no specific data that gives an outline of the salary, similar jobs to this such as Mortgage loan originator and a Loan officer earn $162, 095 and $169, 030 respectively per year with an average commission of $27,600 and $24,000 per year. Hence, A mortgage loan officer’s salary is somewhere close to that range.

Can you see that becoming a mortgage loan officer is not as difficult as you think? Would you love to become one or do you know someone considering a career in this line? Kindly share this piece with them.