Guide: How to become a Mortgage Broker
Being a mortgage broker can be a very lucrative career. Mortgage brokers who have been in the business for a few years and who are very good at their jobs are more than capable of earning a 6-figure income.
When learning about how to become a mortgage broker it is important to realize that this is a job where performance matters. Your compensation is directly affected by it. Therefore, the path that you take to becoming a mortgage broker is very important, because it plays a part in how well you will ultimately perform in your career.
These 6 tips should not only help you learn how to become a mortgage broker, but how to become a successful one.
#1 – Find a Mentor
When learning how to become a mortgage broker, this might be the most important, and the least performed, step. Go into a couple of mortgage brokers and see if anyone would be interested in chatting with you about the career a little bit. It is too easy to look at a commission based career like this and not realize how much hard work goes into creating a successful business.
Image Source: How to Become a Mortgage Broker
Ask a broker to talk you through all of the things he or she does to ensure a successful business. There is a lot of networking, paying your dues and hard work involved. In addition, you may find that much more of your earnings will need to be reinvested in things like advertising and marketing when you first start in this career than you originally anticipated. A good mentor can help walk you through these things, which will help you decide if this career is really for you.
#2 – Research The State Requirements
Every state sets the requirements that you must fulfill in order to get your license to work as a mortgage broker. In addition to getting the requisite education, you may also need to provide several other pieces of information. This can include fingerprints, a criminal record check and a credit report, among others. If you investigate this before you start your education, you can start gathering this data so you can obtain your license as soon as possible after completing your course.
#3 – Take A Mortgage Broker Course
In order to pass the exams that grant you your license, you need to take a course that will teach you everything you need to know about entering this career. You also need to complete a course in order to qualify to write the exams in most jurisdictions.
When learning how to become a mortgage broker this is the step that will actually give you the hard knowledge that you need in order to operate in this industry. In a given state, there may be several different courses that teach you the required information. There may also be a mixture of online and in class study options, so you can find one that works for you.
#4 – Pass Your Licensing Exams
In order to actually work as a mortgage broker, you have to pass a licensing exam as well. Taking the time to prepare well for this exam can help get you into the working world quicker.
You will have to pass both a federal and state exam. In some states, there may be multiple parts of the exams required. The NMLS, (National Mortgage Licensing System) has a complete list of the testing requirements by state. Visit www.nationwidelicensingsystem.org to find the testing requirements for your state.
#5 – Join a Professional Organization
Joining a professional organization as soon as you're able is a great tip for those looking to learn how to become a mortgage broker. A professional organization gives you access to great contacts and resources within the mortgage broker industry. In addition, it gives you a certain amount of credibility, which will be important as someone looking to break into the industry and gain the trust of new clients.
The primary national mortgage broker professional organizations is NAMB, or the National Association of Mortgage Brokers. Joining this body is highly recommended and beneficial for new mortgage brokers. There are also state associations you should also join.
#6 – Get Ongoing Education
Ongoing education is a critical part of learning how to become a mortgage broker. The professional organizations such as NAMB offer many ongoing educational opportunities. Ongoing education helps ensure that you're always at the top of your profession. It also helps keep you working within the confines of the law, as laws and regulations regarding financial industries like mortgages change frequently, and it is very important that you stay up to date on these at all times.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.