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.
A loan officer license allows you to originate mortgages and help homebuyers secure financing to purchase real estate. Becoming a licensed loan officer can be a rewarding career that offers flexibility, unlimited earning potential, and the satisfaction of helping clients realize their dreams of homeownership.
If you’re interested in getting your loan officer license, this comprehensive guide will walk you through the step-by-step process
Step 1: Request an NMLS Account
The first step is to request an account on the Nationwide Multistate Licensing System (NMLS). This system allows you to apply for licenses in multiple states through a single platform. Go to the NMLS website and click “Create an Account” to get started.
Once your account is created, you’ll receive an individual NMLS identification number. Make note of this number, as you’ll need it throughout the licensing process.
Step 2: Complete Pre-Licensure Education
Most states require loan officer license candidates to complete 20 hours of NMLS-approved pre-licensure education. These courses cover important topics like ethics, lending laws, loan products, and more.
When researching course providers, look for options that are approved in the states you want to be licensed in OnCourse Learning and Mortgage Educators are two reputable providers.
Step 3: Pass the SAFE Loan Officer Test
After completing your pre-licensure education, the next step is to pass the SAFE Mortgage Loan Originator test This national test is administered by the NMLS and consists of 125 multiple choice questions.
You can schedule the test through your NMLS account. The exam fee is $110 and you’ll have over 3 hours to complete it. Be sure to thoroughly study beforehand using SAFE test prep materials.
A passing score is 75% or higher. If you don’t pass on the first try, you must wait 30 days before retaking the exam.
Step 4: Submit Fingerprints for Background Check
Loan officer license applicants must undergo a criminal background check. You’ll submit fingerprints electronically through the NMLS system.
When logged into your account, click the “Criminal Background Check” section and follow the prompts to schedule a fingerprinting appointment at an approved site.
The background check fee is currently $36.25. Some states may require additional background checks.
Step 5: Submit Your License Application
After passing the SAFE exam and completing the background check, it’s time to officially apply for your loan officer license through the NMLS system. This involves:
- Completing the Individual Form (MU4) with your employment history, disclosures, etc.
- Paying the license application fee. This includes a $30 NMLS fee plus a state-specific fee (usually around $100-$500).
- Submitting any required supplemental documents for your state.
- Authorizing an NMLS credit report ($15 fee).
Step 6: Get Sponsorship from a Company
The final step is to get sponsored by a mortgage company or lender. This sponsoring employer will submit information to NMLS verifying they are hiring you as a W-2 loan officer.
Once approved, your license will be activated and you can begin originating mortgages under their authority. Independent loan officers can apply for sponsorship with a mortgage broker.
And that covers the main steps for getting your loan officer license! While the process involves some time and upfront costs, it’s an investment that can pay off exponentially if you work hard to build a successful mortgage origination career.
The key is finding a solid sponsoring employer who will provide the support, resources, and opportunities you need to thrive as a loan officer. Do your research to find the right fit.
With determination and commitment, you can obtain your loan officer license and start helping borrowers get financing to purchase their dream homes.
Step 6: Pass the national SAFE exam
The SAFE exam is 190 minutes long, and costs $110. Schedule your SAFE test when you feel ready. To get your mlo license, you’ll need to pass the NMLS’s SAFE Mortgage Loan Originator Test with a score of 75% or higher. If you do not pass the SAFE exam, you can wait 30 days and take it again.
Step 5: Prepare for the national mortgage SAFE Test
After you’ve completed your 20 hours pre license course and the additional 3 hours of Texas specific education, it’s time to study for your Secure and Fair Enforcement (SAFE) exam. The SAFE exam was instituted by Congress as part of the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) of 2008.
Purchase your SAFE test prep materials and practice tests to begin studying.
How to Become a Mortgage Loan Officer in 2024! (Step by Step)
FAQ
Is it hard to make it as a loan officer?
How do I become a US loan officer?
How much does MLO make in Texas?
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Annual Salary
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Monthly Pay
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Top Earners
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$116,922
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$9,743
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75th Percentile
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$93,200
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$7,766
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Average
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$79,019
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$6,584
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25th Percentile
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$48,400
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$4,033
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How do I become a mortgage loan originator?
Large companies hire mortgage loan originators (MLOs) who have completed a degree at a college or university, because extra knowledge of law, business, and financial procedures makes you a greater asset to the company. Look for a job. Identify loan origination opportunities in your area. Look both on and offline.
How long does it take to become a mortgage loan officer?
If you are able, though, you can complete your mortgage loan officer training in just two days. Loan Officer School does not have some of the same resources as the other mortgage loan officer schools. They are a much more bare bones type of school that is focused primarily on getting your required hours finished.
How do I apply for a mortgage license?
The application process for companies and individuals is handled by the Nationwide Mortgage Licensing System (NMLS). NMLS allows entities and loan originators to apply or renew a license or registration online.