How Do You Become a Mortgage Loan Officer?
If you’re interested in a career in the mortgage industry, you may be wondering how to become a mortgage loan officer. In this blog post, we’ll outline the steps you need to take to begin a successful career in this field.
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A mortgage loan officers is a professional who helps potential home buyers obtain financing for their home purchase. Mortgage loan officers typically work for banks, credit unions, and other financial institutions. They are responsible for assessing a borrower’s financial situation and determining whether or not they qualify for a home loan.
In order to become a mortgage loan officer, you must first complete a mortgage training program. These programs are typically offered by banks, credit unions, and other financial institutions. After completing a mortgage training program, you will then need to obtain a license from the state in which you wish to practice. Once you have obtained your license, you will be able to began working as a mortgage loan officer.
The Mortgage Loan Officer Job
Mortgage loan officers typically need at least a bachelor’s degree in a field such as finance, business administration, or economics. Some Mortgage loan officers may also choose to get a master’s degree in business administration (MBA) with a concentration in finance.
In order to become a mortgage loan officer, you will need to complete 20 hours of pre-license education. At the completion of your pre-license education, you will then need to pass the National Mortgage Licensing System (NMLS) exam. After you have passed your exam, you will be officially licensed as a mortgage loan officer!
You can become a loan officer in one of two ways: through on-the-job training or through completing an accredited education program. Many loan officers start their careers as tellers or customer service representatives in banks or credit unions and then move into loan officer positions. Some may have taken courses offered by their employer to prepare them for the job.
On-the-job training might be enough if you’re natural salesperson with good math skills and some knowledge of accounting. If you don’t have these skills, or if you’d like to learn more about the mortgage industry, consider completing an accredited education program.
accredited by the National Mortgage Licensing System (NMLS). Although requirements vary by state, most successful completion of an accredited education program will satisfy the federal SAFE Act requirements for licensing.
Most mortgage loan officers need to be licensed. Though requirements vary by state, most states require mortgage loan officers to take pre-licensing education courses and pass a state exam. Check with your state’s regulator to determine the specific requirements for licensure in your state. Some states accept certain coursework in lieu of the pre-licensing education requirement. A few states have “grandfathered” loan officers who are not required to take pre-licensing education courses.
In addition to taking pre-licensing courses, most states also require mortgage loan officers to complete continuing education courses on an ongoing basis to renew their licenses. Some states require licensed loan officers to complete as many as 20 hours of continuing education every year.
The Mortgage Loan Officer Salary
A Mortgage Loan Officer helps people obtain loans to purchase property. The average salary for a Mortgage Loan Officer is $33,000. There are many Mortgage Loan Officer positions available, and the salary can vary depending on experience and location.
The average salary for a Mortgage Loan Officer is $33,674 per year in the United States. Salary estimates are based on 2,720 salaries submitted anonymously to Indeed by Mortgage Loan Officer employees, users, and collected from past and present job advertisements on Indeed in the past 36 months. The typical tenure for a Mortgage Loan Officer is 1-3 years.
Salary by State
The average salary for a mortgage loan officer (MLO) in the United States is $64,650 per year or $3,110 per week. The salary range for mortgage loan officers runs from $32,000 to $129,000 annually. Mortgage loan officers typically work for banks and credit unions, although some may be employed by mortgage companies. The highest-paid MLOs work in California, New York, Florida, Illinois and Texas.
Salary by City
Salary ranges for a Mortgage Loan Officer can vary widely, depending on the city and several other factors including education, certifications, additional skills, and the number of years you have spent in your profession.
As of May 2020, the average annual salary for a Mortgage Loan Officer in the United States was $73,760. However, salaries ranged from $43,360 at the 25th percentile to $98,400 at the 75th percentile. This means that for every 100 Mortgage Loan Officers working in the United States, 25 were earning less than $43,360 per year while 75 were earning more than $98,400 per year.
Here is a list of average annual salaries for Mortgage Loan Officers in selected cities as of May 2020:
-New York City: $85,520
-Los Angeles: $80,370
-San Antonio: $66,040
Mortgage Loan Officer Job Outlook
Employment of mortgage loan officers is projected to grow 11 percent from 2019 to 2029, much faster than the average for all occupations. A tighter housing market and the continued popularity of fixed-rate mortgages are expected to lead to strong employment growth.
Mortgage loan officers must have a bachelor’s degree, although some employers may prefer candidates with a master’s degree or higher in business administration or finance. Mortgage loan officers also must be licensed.
In order to become a mortgage loan officer, you will need to complete a few steps. First, you will need to obtain a bachelor’s degree in finance or a related field. Next, you will need to obtain state licensure. Finally, you will need to complete on-the-job training.