How to Become a Mortgage Loan Officer: A Step-by-Step Guide

A mortgage loan officer plays a critical role in helping homebuyers navigate the complex process of obtaining home financing. As a mortgage loan officer, you get the opportunity to guide clients through one of the most important financial decisions of their lives – buying a home.

If you’re interested in a career that allows you to build relationships with clients and help families achieve their dreams, becoming a mortgage loan officer may be a great path for you. This comprehensive guide outlines all the key steps you need to take to get started in this rewarding field

Step 1: Make Sure You Have the Right Skills and Traits

To be successful as a mortgage loan officer, certain skills and personality traits are very helpful:

• Strong communication and listening abilities – You’ll need to clearly explain mortgage options and regulations to clients and understand their unique needs and goals.

• Comfort with sales and negotiations – Much of the job involves presenting loan products rates and fees and finding the best solutions for borrowers.

• Highly organized and detail-oriented – Following mortgage lending regulations precisely is crucial.

• Problem-solving skills – You’ll need to find solutions when loan application issues arise.

• Personable and trustworthy – Clients are trusting you with an immense financial decision, so they need to feel comfortable working with you.

• Motivated and driven – Loan officers are often paid on commission, so you need to be motivated to produce consistent business.

Assess if this aligns with your natural abilities. If so, a career as a loan officer may be a great idea for you.

Step 2: Earn a College Degree (Optional but Recommended)

A college degree is not absolutely required to become a mortgage loan officer. However, having a bachelor’s degree in a relevant field like finance, accounting, economics or business can be very helpful in building your knowledge base and credibility with future employers.

Coursework in these majors will teach you useful skills like financial analysis, marketing, communication, management and more. Any college-level experience and a degree on your resume can give you an advantage.

Step 3: Consider Getting Experience in Banking or Finance

Gaining some work experience in the financial services industry prior to becoming a mortgage loan officer is not strictly required, but it can be tremendously helpful.

Look for entry-level roles in areas like:

• Bank branch office/customer service
• Mortgage company support staff
• Loan servicing/loan processing
• Credit analyst
• Account representative at investment or financial services firm

These positions will help you start gaining valuable knowledge about mortgage lending, underwriting, credit analysis, loan processing and other facets important to the loan officer role. Any exposure you can get to the financial world early in your career pays dividends.

Step 4: Enroll in Mortgage Loan Originator Pre-Licensing Education

To become licensed as a mortgage loan originator (the official name for a loan officer), you need to complete pre-licensing education. This involves 20 hours of coursework covering topics like ethics, lending regulations, the loan process and more.

Many state-approved education providers offer online or in-person pre-licensing courses for $200-300 on average. Providers like Mortgage Educators and Training Inc. or 360training offer approved courses.

Some states like California require 1-2 additional hours covering state-specific material. Ensure you meet your state’s specific course requirements.

Step 5: Pass the National SAFE Mortgage Loan Originator Test

After completing pre-licensing education, the next step is passing the National SAFE Mortgage Loan Originator Test, administered by the Nationwide Multistate Licensing System (NMLS).

This national exam consists of 125 multiple choice questions covering general mortgage knowledge. You must score at least 75% to pass. Study materials and practice tests are available to help prepare.

The exam currently costs $110 and you can schedule it at approved testing centers nationwide. If you don’t pass on the first try, you must wait at least 30 days before re-taking it.

Step 6: Submit Fingerprints and Undergo a Background Check

All mortgage loan originator license applicants must submit fingerprints and complete an FBI background check showing no felony convictions or misdemeanors related to the mortgage/financial industry.

Reach out to your state regulator or the NMLS to learn the approved fingerprinting process in your state. There is generally a $35-50 fee.

Any concerning findings on your background check could impact your loan originator application. Check with your state regulators if needed.

Step 7: Apply for Your Mortgage License

Now you’re ready to formally apply for your mortgage loan originator license through the NMLS. You’ll need to:

• Submit your license application online
• Pay license application fees (varies by state, $300-$500 on average)
• Ensure your pre-licensing and SAFE exam results are on file
• Submit required attestations

Once submitted, your state regulator will review and make a licensing determination. If approved, you’ll be granted your mortgage loan originator license!

Step 8: Join a Mortgage Lender or Brokerage Firm

As a loan officer, you need to work under the license of a mortgage lender or broker company that sponsors your license. Reach out to companies and branches in your state and interview for loan officer positions.

When hired, submit your sponsorship request through NMLS and pay sponsor transfer fees. Once approved, you can begin originating loans under that license.

Alternatively, experienced loan officers can explore starting their own independent mortgage brokerage. This has higher startup costs but provides increased income potential.

Step 9: Build Your Skills and Grow Your Mortgage Business

Once licensed and sponsored, focus on building your skills on the job and establishing your book of business. As you gain experience:

• Observe other successful loan officers in your office
• Learn your company’s specific mortgage products and underwriting guidelines
• Build out your referral network by networking in the community
• Create your unique loan officer branding and marketing materials
• Stay up-to-date on the latest mortgage and real estate trends

Continuously look for ways to polish your customer service, sales and marketing abilities. Over time, you can grow a thriving loan origination business as you help more homebuyers get financing.

Joining Morty as a Loan Officer

Morty is a licensed mortgage brokerage that would love to have you join our team of loan officers. We provide the licensing, training and back-office support you need to succeed as a loan officer in today’s mortgage industry.

Our loan officers get competitive compensation plus an array of technology tools to enhance efficiency and best serve homebuyers.

Visit our Loan Officer page to learn more and apply to start the sponsoring process.

Keep Up with Continuing Mortgage Education

Once licensed, all mortgage loan originators must complete at least 8 hours of continuing education each year to maintain their license.

These annual CE courses help you stay current on changing regulations, mortgage products, and lending practices. They are usually completed online.

Meeting these ongoing CE requirements is essential to remaining an active loan originator. Don’t let your license lapse by keeping up with education.

Enjoy the Benefits and Rewards of Being a Loan Officer

A career as a mortgage loan officer provides nice benefits like:

• The ability to earn a high, performance-based income
• Flexible work schedule with the freedom of an independent contractor
• Opportunity to continually expand your mortgage business
• Helping clients realize the dream of homeownership

It’s a role where you can make a difference in people’s lives while also earning an excellent living if you put in the hard work.

While becoming a loan officer does take dedication and effort, it opens the door to a stable, fulfilling career path in finance. If you have the motivation and desire to succeed, follow the steps outlined here and you’ll be well on your way to an exciting career as a mortgage loan originator.