If you’d like to become a loan officer in Texas, there is a clear path to follow to get your Texas MLO license and begin your career in the mortgage industry. The term mortgage loan originator (MLO), licensed mortgage loan officer are frequently used interchangeably and both reflect the important job of helping home buyers find and secure the right home loan for them.
As a successful loan officer you’ll need both a comprehensive understanding of the mortgage industry and financial regulations as well as good interpersonal and communication skills. To get your mortgage loan originator license you will first learn the national and Texas state-level lending guidelines and then pass an exam to show your mortgage knowledge.
Let’s dive into our step-by-step guide of how to become a TX loan officer. You can also check out our video tutorial on how to become an LO in Texas.
Becoming a mortgage loan officer can be a rewarding career path Mortgage loan officers help connect homebuyers with mortgage loans to purchase real estate They provide guidance on the home buying process and different loan options available,
If you’re interested in a career in finance and enjoy working with clients, being a mortgage loan officer may be a great option to consider. Here is a step-by-step guide on how to become a mortgage loan officer.
Step 1: Earn a Bachelor’s Degree
While it’s possible to become a mortgage loan officer without a bachelor’s degree, having one gives you a significant advantage Majoring in finance, accounting, economics, business administration or a related field will provide useful background knowledge. Coursework in real estate, statistics and communication is also helpful
Many employers prefer candidates with bachelor’s degrees when hiring mortgage loan officers. So earning one will make you more competitive. If you don’t have a bachelor’s degree, consider taking individual courses in banking, finance, marketing and communication at a local community college.
Step 2: Gain Sales Experience
Previous experience in sales, customer service or related fields is extremely valuable for mortgage loan officers. Working in sales teaches you how to build relationships with clients, communicate effectively, negotiate deals and close transactions.
Look for sales jobs at insurance companies, banks, real estate agencies, retail stores or other service-focused businesses. Any role involving sales will help you gain useful skills for originating mortgage loans down the road.
Step 3: Consider Becoming a Loan Officer Assistant
One of the best ways to break into the mortgage industry is by becoming a loan officer assistant (LOA) or loan processor. In this role, you’ll support mortgage loan officers by organizing paperwork, gathering documents from clients and inputting application data.
Working as an LOA allows you to learn the loan origination process from the inside and gain valuable on-the-job training before getting your own license. It’s an excellent path many successful loan officers take early in their careers.
Step 4: Take Mortgage Education Courses
Before applying for your mortgage loan officer license, you’ll need to complete a series of mortgage education courses. Required coursework includes:
- 20 hours of NMLS pre-licensure education
- Specific courses mandated by your state
- Annual continuing education to maintain your license
These mortgage classes cover topics like ethics, lending laws and regulations, loan products, the origination process and more. They ensure loan officers have the proper knowledge before conducting business.
Step 5: Pass the SAFE Mortgage Loan Originator Test
The SAFE (Secure and Fair Enforcement for Mortgage Licensing Act) national test must be passed to become a licensed mortgage loan officer. The 100 question multiple choice exam covers general mortgage knowledge and laws.
A score of at least 75% is required to pass. Test prep courses and practice exams can help you prepare and improve your chances of passing on the first try.
Step 6: Apply for Your Mortgage License
After completing education and passing the SAFE exam, apply for your mortgage loan originator license. This is done through the Nationwide Multistate Licensing System (NMLS). The application process includes:
- Submitting your personal information
- Providing fingerprints for a background check
- Disclosing any past bankruptcies or financial judgements
- Paying required licensing fees
Once approved, you will receive your unique NMLS number identifying you as a licensed loan officer. This license must be renewed annually by completing continuing education.
Step 7: Join a Company or Go Independent
With license in hand, you’re ready to start originating loans. You can either join a bank, credit union or mortgage company as a loan officer employee. This provides structure, training and benefits.
Or you may choose to go independent as a mortgage broker working for yourself. This offers greater flexibility and income potential but also more risk and responsibility. Weigh the pros and cons of each path.
Step 8: Build Your Network and Get Clients
Success as a loan officer depends on having a steady source of client referrals. Focus on networking with real estate agents, financial planners, home builders, insurance agents and other professionals who interact with homebuyers.
Join local associations, attend industry events and leverage social media to build relationships. Strong referral partnerships drive business and help grow your client base.
Step 9: Stay Up-To-Date on Mortgage Trends
The mortgage industry is constantly evolving. As a loan officer, it’s crucial you stay current on the latest mortgage rates, loan programs, regulations and technology trends impacting the business.
Read industry news and take continuing education courses annually. Attend mortgage conferences and network with fellow loan officers. Adapt to changes to better serve your clients.
Step 10: Provide Excellent Customer Service
Satisfied clients are the lifeblood of success as a mortgage loan officer. Build trust by being transparent, responsive and putting the customer’s needs first. Educate clients so they understand their options and the home buying process.
Follow up after closing to address any issues and maintain the relationship. Strong customer service leads to repeat and referred business.
Step 3: Review the Texas mortgage licensing requirements
Check Texas’s state-specific licensing requirements through Texas MLO license requirements on NMLS’s Resource Center. Here, you’ll find the additional steps required to obtain your MLO license in Texas. You will want to complete this step for any additional state you’d like to get licensed in.
Step 4: Complete national and Texas pre-licensing coursework
Complete the required 20 hours of pre-licensing coursework. Pre-licensing classes for becoming a loan officer cover a range of topics from mortgage industry fundamentals and financial regulations to ethics and professional conduct. The Texas Department of Savings and Mortgage Lending also requires 3 additional hours of pre-licensing courses that are dedicated to state-specific laws and regulations.
Morty recommends Oncourse Learning as a pre-licensing coursework provider. If you’d like other recommendations, reach out through our Platform Loan Officer program.
How to Become a Mortgage Loan Officer in 2024! (Step by Step)
FAQ
Is it hard to make money as a mortgage loan officer?
Is it hard to get hired as a loan officer?
How long does it take to get a loan officer license in Texas?
How much does a mortgage loan officer make in Texas?
Why should you become a mortgage loan officer?
When you become a mortgage loan officer, you can help clients along their way to purchasing real estate, which has the potential to be life changing. It means families can buy homes or small business owners can make their dreams become a reality.
How do I become a mortgage loan officer?
Here are the steps you can follow to be an MLO: 1. Meet the basic requirements To become a mortgage loan officer, you need to be at least 18 years old and have a high school diploma or GED. While in school, try to take math- and finance-based classes to start gaining some knowledge and skills needed to be an MLO.
Do you need a mortgage loan officer certification?
While it’s not required, you may want to obtain a mortgage loan officer certification to propel yourself to the top of a prospective employer’s list. Several postsecondary schools and banking associations, such as the American Bankers Association and the Mortgage Bankers Association, offer courses, training programs, and certifications.
How do I become a mortgage loan originator?
Whether you graduate with a bachelor’s degree or go the working route, you must obtain a mortgage loan originator (MLO) license to become a fully qualified mortgage loan officer. To get your MLO, you’ll have to complete 20 hours of pre-licensure education and pass the Nationwide Multistate Licensing System & Registry (NMLS) exam.