A mortgage loan broker serves as an intermediary between borrowers and lenders to help clients obtain home financing If you enjoy working with people, have strong sales skills, and want to build a career in the mortgage industry, a job as a mortgage broker may be right for you.
In this comprehensive guide, we’ll cover everything you need to know about mortgage broker jobs, including:
- What does a mortgage broker do?
- Key duties and responsibilities
- Important skills and qualifications
- Salary and compensation
- How to become a mortgage broker
- Licensing and education requirements
- Finding job openings and getting hired
- Pros and cons of being a mortgage broker
- And more…
Whether you’re looking to switch careers or just starting out in the working world, read on to find out if being a mortgage loan originator could be a good fit.
What Does a Mortgage Broker Do?
A mortgage broker, also known as a loan officer or mortgage originator, helps home buyers find and obtain financing to purchase real estate. The primary role involves connecting clients in need of a mortgage with various wholesale lenders that offer loan products and rates.
Typical job duties and responsibilities of a mortgage broker include:
- Meeting with prospective homebuyers to understand their financial situation and goals
- Collecting documentation and paperwork from borrowers
- Prequalifying clients to determine affordability and lending options
- Educating clients on different loan programs and terms
- Submitting loan applications and supporting documents to various wholesale lenders
- Negotiating interest rates and loan options on the client’s behalf
- Comparing loan offers to find the best fit for each customer’s needs
- Guiding clients through the lending process until close
- Ensuring all requirements are met leading up to closing
- Maintaining strong relationships with realtors and lenders
Essentially, a mortgage broker shops the mortgage market and lending sources to find the right loan program and rate for each customer. They handle the loan process from application to closing.
Key Skills and Qualifications for Mortgage Brokers
To succeed as a mortgage loan officer, certain soft skills and inherent abilities are helpful, including:
- Strong communication and listening skills
- Ability to explain complex financial information clearly
- Confident and helpful telephone presence
- Outgoing and engaging personality
- Organizational skills with strong attention to detail
- Customer service and relationship building skills
- Motivation to meet sales and performance goals
- Competitive drive
In terms of hard skills and qualifications, mortgage brokers typically need:
- High school diploma or equivalent
- 2+ years of sales, banking, or real estate experience
- Familiarity with loan products, credit, mortgages, and regulations
- Strong math, analytical, and financial skills
- Proficiency using CRM and loan origination software
- Ability to multi-task in a fast-paced environment
- Willingness to work evenings and weekends as needed
- Clean background check and drug screening
Many employers also prefer candidates have a bachelor’s degree, preferably in a relevant field like finance, economics, or real estate.
Overall, mortgage brokers need to be ambitious, client-focused, and comfortable working on commission.
Salary and Compensation for Mortgage Brokers
Most mortgage brokers earn money through a commission-based structure, receiving a percentage of each funded loan they close. This means compensation is heavily dependent on sales volume.
According to the Bureau of Labor Statistics, the median annual salary for loan officers and mortgage brokers in the U.S. is $63,000. However, first year earnings often fall below $40,000. Commission potential rises once brokers build a client base and consistent pipeline.
On average, mortgage brokers earn 0.5% to 2.5% of each funded loan amount. With commissions based on loan volume, six-figure incomes above $100,000 are possible for high performers.
Many brokers also receive employee benefits like health insurance, retirement plans, and mileage reimbursement.
How to Become a Mortgage Broker
Starting a career as a mortgage loan officer involves following these key steps:
Complete Educational Requirements
Most mortgage brokers have at least a high school diploma or GED, although more and more employers want candidates with a bachelor’s degree in a field like finance, business, marketing, or real estate. Coursework in accounting, economics, statistics, and writing is helpful.
Many brokers pursue industry certifications such as the NMLS license (see below) along with designations like Certified Mortgage Planner (CMP) or Certified Mortgage Banker (CMB) through the Mortgage Bankers Association.
Obtain Your NMLS License
You must hold a license through the Nationwide Multistate Licensing System (NMLS) to originate mortgages. This involves submitting an application, paying fees, passing background checks, and taking 20 hours of NMLS-approved education courses followed by passing the National Test and State Test.
Licensing requirements can vary by state so check your state’s guidelines. Renewing an existing NMLS license also requires taking annual continuing education courses.
Apply for Mortgage Broker Positions
Look for open mortgage broker jobs on sites like Indeed, Monster, LendingTree, and ZipRecruiter. Local real estate offices, banks, and credit unions also frequently hire loan officers.
You may start as a junior broker or loan officer trainee to gain experience before progressing to a full broker or senior position. Be prepared to interview and showcase your abilities.
Build Your Client Base
Make contacts and establish relationships with local real estate agents who can refer clients. Use social media and digital marketing to expand your network. Attend networking events to meet potential borrowers.
It takes time to build a strong referral pipeline, so patience and perseverance are crucial when starting out. Stay motivated and keep learning from senior brokers at your company.
Pros and Cons of Being a Mortgage Broker
Pros
- Unlimited earning potential through commissions
- Flexible work schedule
- Fast paced and dynamic work in real estate
- Opportunity to help people buy homes
- Ability to be your own boss if self-employed
Cons
- Commission-only pay may be unstable
- High pressure sales environment
- Achieving sales goals takes much cold calling and door knocking
- Job security tied directly to loan volume
- Potentially long hours and weekends
- High turnover industry
The mortgage broker career path isn’t for everyone. But if you love sales, thrive under pressure, and want to manage your own book of business, it can be extremely rewarding. Just know that it takes hustle and determination to achieve a high income.
Finding Mortgage Broker Jobs
The first step is getting your NMLS license which shows lenders you can legally originate mortgages in your state. After licensing, look for job openings by:
- Browsing mortgage lender job boards and company career pages
- Applying with banks, credit unions, and mortgage companies
- Searching for loan officer openings on Indeed, Monster, LendingTree, etc.
- Looking for trainee or junior broker positions to start out
- Attending job fairs and recruiting events
- Talking to your network and contacting companies directly
Once you have experience under your belt, more broker opportunities will open up. Create a polished resume highlighting your lending abilities. Prepare for interviews by practicing your pitching and communication skills.
Present yourself as a motivated, client-focused, trustworthy finance professional. Emphasize your drive to start a long-term career in the mortgage industry.
Many loan officers start out at a retail branch or corporate office. But after you build some expertise, you can look into flexible remote work arrangements or even starting your own mortgage brokerage.
Ready to Start Your Career as a Mortgage Broker?
Becoming a successful mortgage loan officer requires determination, phenomenal people skills, and a tireless work ethic. But helping clients secure loans to buy their dream homes can also be extremely worthwhile and lucrative for the right individuals.
Now that you know more about what mortgage brokers do and how to get into the field, you can make an informed decision about whether it’s the right move for you. Use the guidance above to take the next steps in launching your mortgage career. The housing market needs more talented, passionate brokers to keep serving the needs of homebuyers across the country.