In this article, I’m going to explain to you how to get your mortgage loan originator license and work as a loan officer. This is a very lucrative career and I recommend it to anyone who wants to help homeowners or future home buyers as well as have an uncapped income
It is one of the best licenses to get. It is also one of the best careers as well. So, basically, I’ll walk you through what the job entails, how to get your license step by step and pass the state exam and then how to actually start getting business in the field.
Let’s start off with what a mortgage loan originator is.
Who is a loan officer?
Also known as a loan officer or a mortgage broker, a mortgage loan officer helps people get a mortgage when they are buying or refinancing a house. You will be working directly with home buyers to evaluate the kind of house that they can afford based on their income, bank statements, credit score and a lot more things. For homeowners that already have a mortgage, you can help them refinance to a new term or to a lower rate.
A loan officer helps customers with loan applications. They help you determine the appropriate loans as per your income and needs. These professionals are usually specialized in consumer, mortgage and commercial loans. They work for commercial banks, credit unions and mortgage companies.
The US Bureau of Labor Statistics report of 2015 states that the average annual salary for loan officers was $75,170.
What are the qualifications for becoming a loan officer?
Some employers will look for Bachelor’s degree in economics, finance, business and other related fields when hiring a new professional. The minimum qualification required is a high school diploma.
Mortgage loan officers do require licenses. You can also get certifications done, which are absolutely optional.
What are the experiences and skills requirements for the job?
When it comes to experience, most employers look for individuals with 2 to 5 years of experience.
Other requirements for the job are good communication skills and interpersonal decision-making skills.
Having good knowledge of mortgage, loans and financial institution policies and procedures are preferred.
Here are the steps required for becoming a loan officer:
Step 1. Earn a Bachelor’s degree
Loan officers need to have a minimum qualification of having a high school diploma. However, the preferred qualification for this job is a Bachelor’s degree in economics, business, and other related fields. Having expertise in subjects such as mathematics, accounting and finance make it more convenient to gain a good position in this field.
Step 2. Get enough work experience
Experience is one of the most important factors when it comes to getting a job as a loan officer. When you are seeking employment right out of high school, it is your experience that sets you aside from the competition.
Step 3. On-The-Job-Training
Taking part in on-the-job-training is a must-do for a loan officer irrespective of the degrees one has. The training received can be a mix of formal and informal training.
Step 4. Get a mortgage loan officer license
To become a Mortgage loan officer, you will need a mortgage loan originator license. You can get this by passing an exam and completing 20 hours of coursework and getting background checks done.
Step 5. Get certified
Getting certifications done on time may improve the chances of employment. The Mortgage Bankers Association and the American Bankers Association offer certification opportunities for various courses and help you get certified.