Step One: Take the pre-licensure class
If you are interested in how to become a mortgage broker, here is some important information you need to know.
All mortgage brokers have to be licensed in order to practice within the industry, and new brokers have to complete a what is called a “pre-licensure program.”
They have to complete a twenty hour class that covers important state and federal laws. The class also covers some topics like financial regulations around mortgages, loan officer ethics and mortgage origination.
The classes as well as the official test are run by a group known as National Mortgage Licensure System. If you are wondering ‘how to become a mortgage broker’, check their website for a local in-person or online class in your area.
Step Two: Pass the NMLS test
You are going to have to pass the SAFE Mortgage Loan Originator Test. Everyone who is trying to become a mortgage broker takes the same national test, but there’s also a state portion unique to your own region. For example, if you live in California you will take the test specific to that state. If you live in Michigan, you will take the test specific to that state, and so on.
It’s important to note that you are able to take the exam whenever you decide. You don’t have to wait for a certain time of the year, which people find very helpful. Once you successfully pass the test, you’re in and can start brokering mortgages. Hooray! But please don’t be fooled… this is now when the hard work actually begins.
Step Three: Now get to work
Becoming a successful mortgage broker is not easy. It takes hard work and dedication. In addition, you are going to need a lot of clients. Some new mortgage brokers may choose to get their first jobs at established brokerage companies with existing client relationships in place. It’s a good idea to research the local market you are interested in before you start the licensure process. Get to know who the big mortgage brokerage companies are and understand what sort of competition you will have in the marketplace. In addition to that research, it is also a very good idea to know what the average price of homes in your area is. This is important information to know because the value of the home often will determine how much a mortgage broker gets paid. More specifically, it is the value of mortgage being taken out on that property that has a direct impact on the pay that the mortgage broker receives.
Step Four: Continuing education on mortgage lending
Once you have figured out how to become a mortgage broker, you have some more hard work ahead of you. After you have your mortgage broker license, it’s part of your job to keep up to date on the latest developments on mortgage lending in your region.
You will have to take a number of hours of continuing education courses each year in order to maintain your status as a mortgage broker. It is kind of similar to what accountants, doctors, and lawyers have to do. It ensures that you can do your job correctly and will give your client base the most up to date mortgage information available.