Becoming a Loan Officer in Texas: A Comprehensive Guide

So you want to become a loan officer in Texas? As one of the fastest growing states in the country, Texas offers tremendous opportunities for mortgage professionals With a hot housing market and thousands of families looking to buy homes, loan officers in Texas can build incredibly lucrative careers.

But how exactly do you become a loan officer in the Lone Star State? What are the requirements and steps to getting your license?

In this comprehensive guide, we’ll walk you through everything you need to know to launch your career as a mortgage loan officer in Texas.

An Overview of the Loan Officer Role

Before we dive into the licensing process, let’s quickly overview what loan officers do.

Loan officers, also known as mortgage loan originators (MLOs), are licensed professionals who help homebuyers find mortgages. The loan officer guides borrowers through the mortgage process, advising them on the best loan options and programs for their financial situation.

As a loan officer, you’ll meet with clients, collect financial documentation, analyze their income and debts, educate them on loans, submit loan applications, and much more. You are the client’s trusted advisor throughout the entire mortgage transaction.

It’s a demanding but rewarding role that allows you to make a real difference in people’s lives. As a loan officer, you get to help families achieve the dream of homeownership.

Now let’s get into the details on how to become a licensed loan officer in the state of Texas.

Step 1: Sign Up for Your NMLS Account

The first step is to head over to the Nationwide Mortgage Licensing System (NMLS) website and create an account. The NMLS is the official mortgage industry registry that tracks licensing for all loan officers across the country.

Once you register, you’ll get a unique NMLS identification number that you’ll use throughout your career. This ID follows you wherever you go as a loan officer.

Step 2: Complete 20 Hours of NMLS-Approved Education

The next step is to complete 20 hours of pre-licensing education courses approved by the NMLS. These courses cover topics like ethics, lending laws and regulations, loan products, the mortgage process, and more.

You can take these courses online through an accredited provider like Mortgage Educators. The 20 hours are broken down into:

• 3 hours of federal mortgage law
• 3 hours of ethics
• 2 hours of non-traditional lending
• 12 hours of general electives

Completing this education shows regulators you understand key concepts before getting licensed.

Step 3: Complete Texas-Specific Education

On top of the national requirements, Texas has a few state-specific educational requirements:

• 3 additional hours covering Texas mortgage laws and regulations

So in total, you need 23 hours of pre-licensing education to become a loan officer in Texas.

The Texas-specific courses ensure you understand key state laws governing mortgage activities. These 3 hours can be taken online just like the national courses.

Step 4: Pass the SAFE Mortgage Loan Originator Exam

After completing all your pre-licensing education, it’s time to pass the SAFE mortgage loan originator exam.

The SAFE exam is a national test administered by the NMLS. It consists of 125 multiple choice questions covering general mortgage knowledge. You need to correctly answer at least 75% of the questions to pass.

You can register to take the exam directly through the NMLS website. The exam fee is $110 and testing centers are located across Texas.

Passing the SAFE exam proves to regulators you have the base knowledge needed for licensing. Be sure to give yourself a few weeks to study beforehand.

Step 5: Submit Your Fingerprints

As part of the license application, you have to complete a background check. This includes getting your fingerprints taken so the FBI can run a criminal history check.

After creating your NMLS account, you can schedule a fingerprint appointment right through their website. There are hundreds of locations across Texas offering digital fingerprinting services.

The background check fee is currently $36.25. Submitting fingerprints is required for all loan officer license applicants.

Step 6: Complete Your License Application in NMLS

Once you’ve passed the SAFE exam and submitted fingerprints, it’s time to file your online license application through the NMLS system.

Make sure you have the following ready when applying:

• Your NMLS ID number
• Pre-licensing education certificates
• SAFE exam results
• Background check fingerprints

The application fee for a Texas loan officer license is $45 payable to the NMLS.

Submitting the application kicks off the official license approval process. You must have an active license before conducting any mortgage activities.

Step 7: Get Sponsored by a Mortgage Company

The final step is getting sponsored by a licensed mortgage company in Texas. This sponsoring mortgage company essentially endorses your license application.

Examples of potential sponsors include mortgage lenders, mortgage brokers, banks, or credit unions.

Once sponsored, the regulator can approve your loan officer license. This allows you to originate mortgages under the supervision of your sponsor.

How Long Does It Take to Get Licensed?

If you work diligently and pass the SAFE exam on your first try, you can get your Texas loan officer license in about 6-8 weeks.

However, it depends how quickly you complete the education courses and schedule exam/fingerprint appointments.

Some people obtain their license in 4 weeks while it takes others 3 months. Don’t rush through the process just for the sake of speed.

The most important things are comprehending the material and passing the exams. It’s not a race!

Finding a Job as a Licensed Loan Officer

Once approved, you’ll need to find a mortgage company to hire and sponsor you. Here are some tips for landing your first loan officer job:

• Look for openings at mortgage brokers, banks, credit unions and mortgage lenders.

• Highlight your sales experience, communication skills and desire to help customers.

• Consider starting out at a larger call center to get training and mentorship.

• Attend local mortgage industry job fairs and network with professionals.

• Be willing to start in a junior or assistant role to gain experience.

• Get resume feedback from experienced loan officers.

It may take persistence to find the right opportunity. But with a little hard work, you can get your foot in the door at a great company.

How Much Do Loan Officers in Texas Earn?

Texas is a red hot market for loan officers right now. According to the Bureau of Labor Statistics, the average loan officer salary in Texas is $76,230 per year. Those with more experience can earn well over six figures.

In addition to base salary, many loan officers earn commission on top of their regular pay. It’s common to earn anywhere from 25 to 200 basis points per loan in commission.

For example, if you originate a $300,000 mortgage, you could make $750 to $6,000 extra on that one transaction. Loan volumes and commission structures vary by employer.

But between salary and commissions, top producing loan officers in Texas earn $150,000+ per year.

Why Become a Loan Officer in Texas?

There are many great reasons to become a mortgage loan officer in the Lone Star State:

• Texas has a massive housing market. Over 170,000 homes are sold every year across the state. There is no shortage of purchase mortgages needed.

• The Texas population is booming. Fueled by job growth and inbound migration, Texas gains over 400,000 new residents annually. This growth outpaces all other states.

• No state income tax. Texas is one of only seven states with no personal income tax. You get to keep more of what you earn as a loan officer.

• Low cost of living. Texas has below average living expenses compared to other large states. Housing and utilities are very affordable, especially in suburbs.

• Vibrant cities. Metropolitans like Houston, Dallas, Austin, and San Antonio offer big city amenities coupled with warm southern hospitality.

Texas strikes the perfect balance between career opportunity and lifestyle. If you’re considering getting into the mortgage industry, the Lone Star State is a great place to launch your loan officer career.

Next Steps to Becoming a Loan Officer in Texas

We covered a lot of ground here on how to become a licensed mortgage loan originator in Texas. Let’s recap the key steps:

• Get your NMLS ID number
• Complete 20 hours of NMLS courses
• Pass 3 hours of Texas-specific education
• Study and pass the SAFE exam
• Submit fingerprints for your background check
• File your online application in the NMLS system
• Get sponsored by a licensed mortgage company

While it may seem daunting, thousands of people become successful loan officers in Texas every year. Stay focused, be diligent, and you could have an incredibly rewarding 30+ year career helping homebuyers realize their dreams.

Ready to take the next step? Check out mortgage brokerages like Morty that sponsor