How to Become a Mortgage Loan Originator in 10 Steps

A mortgage loan originator, also known as a mortgage broker or loan officer, helps connect home buyers with mortgage lenders to obtain financing It’s a growing field that offers the satisfaction of assisting people in purchasing homes. If you’re interested in becoming a mortgage broker, follow these 10 key steps

1. Make Sure You Meet the Basic Requirements

To become a mortgage loan originator. there are a few basic requirements you need to meet

• Be at least 18 years old
• Have a high school diploma or equivalent
• Be eligible to work in the United States
• Have a valid Social Security number
• Pass a background check

Studying math, finance, economics, or business in high school or college can help give you the foundation of knowledge needed for the job.

2. Earn Your Mortgage License

You’ll need to earn a mortgage loan originator license in the state where you plan to work. Each state has its own licensing program, which involves:

• Completing 20 hours of NMLS-approved pre-licensing education courses
• Passing the National Mortgage Licensing System’s (NMLS) SAFE Mortgage Test
• Submitting license application forms and paying licensing fees to your state regulator
• Providing fingerprints for an FBI background check

The pre-licensing courses cover topics like ethics, regulations, credit evaluation, and the loan process. Visit the NMLS website to find approved course providers.

3. Choose Your Path

You have a few options when starting your career as a mortgage loan originator:

• Work for a bank – stable, but lower pay potential
• Work for a mortgage brokerage – higher pay through commissions
• Be self-employed – set your own hours, but less structure

Many new loan originators start at a bank or brokerage to gain experience before going independent.

4. Look for a Mentor

A mentor in the mortgage industry can teach you the ins and outs of the job. Seek out an experienced loan originator at your company or in your network who can provide advice and guidance. Shadowing a mentor is one of the best ways to learn.

5. Master Loan Options

Get to know the wide variety of mortgage loans and programs available, including:

• Conventional loans
• FHA loans
• VA loans
• Jumbo loans
• Adjustable-rate mortgages (ARMs)
• Fixed-rate mortgages

Understand the features, requirements, and pros/cons of each loan type. This knowledge will help you guide borrowers.

6. Build Your Network

Networking is crucial for mortgage loan originators. Get to know real estate agents, attorneys, home inspectors, appraisers, insurance agents, and other professionals who make up the homebuying ecosystem. Building relationships leads to referrals.

7. Get Sales Experience

hone your sales abilities. As a mortgage loan originator, you’ll need sales skills to promote your services, convince borrowers to work with you, negotiate rates/fees, and close deals. Any experience in sales, marketing, or client service will help.

8. Learn Time Management

Balancing multiple client cases at once takes strong time management skills. You’ll need to juggle sales, paperwork, follow-ups, and keeping deals on track. Get organized and find a system that works for you.

9. Continue Your Education

Ongoing mortgage education is required to renew your loan originator license each year. Completing additional training also makes you more knowledgeable and better positioned for success.

10. Join a Professional Association

Industry groups like the National Association of Mortgage Brokers provide networking, training programs, mentorship opportunities, and more. Membership can help advance your career.

With the right dedication and persistence, you can build a rewarding career helping homebuyers get financing and achieve their dreams of homeownership.