How to Become a Mortgage Broker
Mortgage Brokers are licensed professionals who help their clients search for and secure a loan that helps pay for any type of real estate property. They have thorough knowledge regarding financing companies and their loan rates as well as state laws. These professionals are required to be licensed in their state in order to work in this profession.
As opposed to Mortgage Bankers, Mortgage Brokers do not have to solely work with one lender; they can work with a variety of them in order to secure the best financing options for their clients. A Mortgage Broker can be considered a "go between" person or a matchmaker in the sense that they match their clients with a lending institution that is able to give the best financing package available.
In order to become a Mortgage Broker, candidates should be self motivated, be able to perform research on lending companies and their clients as well as have the ability to keep their clients' personal information private. In fact, privacy concerns are one of the reasons why Mortgage Brokers need to secure licensure in the field.
Education Requirements to Become a Mortgage Broker
In order for someone to become a Mortgage Broker, a candidate has to become licensed in the state they wish to practice in. Education backgrounds vary within this profession with some professionals having acquired a high school diploma, completion of a certification program, or an Associate's degree. However, all candidates are required to pass a licensing exam before they can help any real estate clients.
For individuals who pursue an Associate's degree, their option is to attend an accredited community college and fulfill the requirements for an Applied Science program in Mortgage Banking (A.S. in Mortgage Banking). Associate's degrees typically take about two years to complete.
A certification program requires less time to complete with some requiring only one semester. A student will learn a variety of information regarding loans such as underwriting and how to close a loan. A certification program can help a candidate prepare for their state's licensing exam.
Each individual state has its own established licensing laws and requirements. Candidates will have to research their states prerequisites in order to become a Mortgage Broker. A helpful site with links to all states' mortgage licensing offices is Mortgage Banker Licensing.
Mortgage Brokers must also take continuing education classes in preparation for license renewals. Renewal requirements and frequency between renewals will also depend on each individual state.
Mortgage Broker Job Description
A professional Mortgage Broker can work as an independent contractor or a lending company. Mortgage Brokers are responsible for researching a variety of financial institutions and rates in order to offer their clients the best mortgage financial package possible for them.
Mortgage Broker professionals need the ability to keep confidential information private because one of their main responsibilities is to gather sensitive information about their clients in order to look up their credit scores and determine financing options for them.
The first step is for a Mortgage Broker to collect all the information necessary by having the client fill out an application for a mortgage loan. Using the submitted information, Mortgage Brokers will establish a comprehensive financial background of their clients. Mortgage Brokers gather and use private information such as date of birth, marriage status, the type of employment, salary information and frequency of pay, social security numbers and other types of loans their clients are paying off. Using their client's personal information, Mortgage Brokers will research and present the best financing options to them.
A Mortgage Broker establishes several connections with employees at financial institutions in order to be able to gather information regarding their mortgage loan services. These professionals can also expect to work some nights and weekends because the majority of people work during the day.
Mortgage Broker Salary and Career Path
A Mortgage Broker's income depends on their ability to sell and locate potential clients. The national median wage for these professionals in 2006 was approximately $51,000 annually.
As for the job outlook for Mortgage Brokers, they will be affected by the public's heavy use of the internet. Clients can now visit a financial institution's direct website to shop for mortgage rates and can input basic personal information to get quotes. This will affect the use of the Mortgage Broker as a middleman and will create slow growth for people in this profession.
*Salary Information provided by the Bureau Of Labor Statistics