How to Become a Mortgage Loan Officer

Mortgage loan officers help people finance the purchase of a home. If you’re interested in becoming a mortgage loan officer, read on to learn about the education and skills you’ll need, as well as the job outlook and salary potential.

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Introduction

A mortgage loan officer is a professional who helps potential home buyers obtain financing to purchase a home. To become a mortgage loan officer, you must complete a mortgage loan originator program and obtain a license from the Nationwide Mortgage Licensing System & Registry (NMLS). In some states, you may also need to complete continuing education courses on an ongoing basis to maintain your license.

The Steps to Becoming a Mortgage Loan Officer

A mortgage loan officer is a professional who helps potential home buyers obtain financing to purchase a home. If you have a passion for helping people achieve their homeownership dreams, then a career as a mortgage loan officer may be perfect for you. But what does it take to become a mortgage loan officer? In this article, we’ll outline the steps you’ll need to take to become a mortgage loan officer and help you decide if this career is right for you.

Research what it takes

Mortgage loan officers typically need at least a bachelor’s degree in finance, economics, or a related field. Coursework in math, accounting, and business also is helpful. Mortgage loan officers must be licensed. Specific education and experience requirements for licensing vary by state but generally include completing prelicensing education and passing an exam.

Most states require mortgage loan officers to complete 20 hours of prelicensing education within the first 6 months of assuming their position. They must also pass the National Mortgage Licensing System (NMLS) exam. The NMLS website provides study materials and resources to help individuals prepare for the exam.

Additionally, many mortgage companies require loan officers to complete continuing education courses on an annual basis to stay up-to-date on industry changes.

Get a degree or take courses

Although a degree is not always necessary, taking courses related to finance, business, and economics can be helpful when you are trying to become a mortgage loan officer. Many community colleges and universities offer these types of courses, and they can often be taken online or at night to accommodate your schedule. If you decide to pursue a degree, look for programs that offer internships or opportunities to gain real-world experience in the mortgage industry.

Get licensed

You will need to take a 20-hour class and pass an exam to get licensed. The test covers federal and state laws, ethics, and other topics related to the mortgage industry. You can find study materials and register for the exam through the Nationwide Mortgage Licensing System & Registry (NMLS).

Find a job

The first step to becoming a mortgage loan officer is finding a job. Typically,mortgage loan officers work for banks, credit unions, and mortgage companies. Some may also work for brokerages. There are many different types of financial institutions that offer positions for mortgage loan officers, so it should not be too difficult to find a job that matches your skill set and experience level.

Once you have found a job, the next step is to complete the necessary training. Most financial institutions will require you to complete some type of training program before you can begin working as a mortgage loan officer. This training will teach you the basics of the mortgage industry and provide you with the skills you need to be successful in this position.

After you have completed your training, you will be ready to start working as a mortgage loan officer. In this role, you will be responsible for helping customers obtain loans to purchase homes. You will work with customers to determine their eligibility for loans and help them through the application process. Once you have helped a customer obtain a loan, you will then be responsible for servicing the loan throughout its lifetime.

The Skills You Need to Succeed

Becoming a mortgage loan officer requires hard work, dedication, and a willingness to obtain the proper education and skills. You must be able to obtain and maintain a mortgage loan originator license from the Nationwide Mortgage Licensing System (NMLS). In order to obtain this license, you must pass a criminal background check, a credit check, and complete 20 hours of mortgage education.

Being good with people

Loan officers must be good with people. They must be able to build relationships with potential borrowers, listen to their needs and goals, and explain complicated loan products in simple terms. They also need to be able to handle rejection, as many loan applications are ultimately unsuccessful.

Knowing the ins and outs of the mortgage industry

As a mortgage loan officer, you will be expected to have a complete understanding of the mortgage industry, from the different types of loans available to the qualifications borrowers need to meet. You will need to be familiar with the entire process, from application to closing, and you will need to have a complete understanding of all the documents involved. In addition, you will need to be able to explain the process and answer any questions borrowers may have.

Being detail oriented

As a mortgage loan officer, you will need to be highly detail oriented. Every mortgage loan is different, and you will need to be able to pay attention to the specific details of each one. You will also need to be able to remember a large volume of information and keep track of multiple deadlines. If you are not detail oriented, this job may not be the right fit for you.

Conclusion

The mortgage loan officer profession is not for everyone, but those who are successful in this field can enjoy a long and prosperous career. To become a mortgage loan officer, you must have strong people skills, excellent math skills, and the ability to think on your feet. You must also be licensed and registered with the NMLS. Continuing education is required to maintain your license, and it is important to keep up with changes in the mortgage industry so that you can best serve your clients.