Are you considering a change in careers? Looking for a career that’s entrepreneurial, lucrative and flexible? A new career in Mortgage lending may be right for you! A home purchase is one of the biggest financial considerations most people ever make, and as a Mortgage Loan Originator (MLO), your job is to educate and guide borrowers through the process from application to closing. It is a fulfilling way to earn a living and help others at the same time!
What does a typical day look like?
A Mortgage Loan Originator guides clients through the loan application process. It begins with a formal meeting or telephone call, during which time basic information is shared about the loan’s purpose and available options and credit terms. You will explain the loan process, interest rates and assist clients with filling out the application, for which the lender bases the decision to grant the loan and define the terms.
You will advise prospective buyers to bring information to verify their income and outstanding debts, and detail the specific loan amount and repayment terms. Once complete, you will verify the information contained in the application and analyze it to determine your customer’s creditworthiness. This process involves electronically accessing the client’s financial history and credit score.
At closing, you will meet with the buyer and seller to make the legal exchange of the property and funds. You will likely need to explain closing costs, which usually include discount points, fees, and other items. When interest rates are low, a surge in loan applications is triggered, and business can pick up significantly.
Starting Out
In most instances, mortgage loan originators act as salespeople. They prospect and develop relationships with commercial and residential real estate agencies for client referrals. Recommendations to home buyers from real estate agents are critical to success. Working in the mortgage industry typically involves some travel. You will frequently rely on laptops and cell phones to keep in contact with your office and clients. Loan originators often work out of their home or car, visiting offices or homes of clients while completing loan applications.
Compensation varies, but most are paid a commission based on the value of loans they originate. In this way, commissions are used as motivation to bring in more loans. Some organizations pay only salaries, while others pay a salary plus commission or bonus.
Unlimited Earning Potential
When the economy is on the upswing or when interest rates decline dramatically, a surge in real estate sales and mortgage refinancing often occurs. Plus, the hiring of loan originators rapidly increases. The opportunity to increase your earnings peaks when demand is high and you are willing to put in the extra effort. Six-figure incomes are common in this industry. It’s simple – the harder you work, the more you make. The sky’s the limit!
Federal law requires new mortgage loan originators to complete at least 20 hours of education approved by the NMLS, including instruction on federal mortgage-related laws, ethics (including fraud, consumer protection, and fair lending), and lending standards for nontraditional mortgage products.
Ready to get stated?
Here’s what you need to do:
Step 1: Complete the exam preparation course best suited to your experience
Step 2: Complete your pre-licensing course(s) required by your state
Step 3: Complete the NMLS mortgage exam
Step 4: Get started in your new career!
Start New. Start Now.
Visit OnCourse Learning to find live and online classes to kickstart your career.
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