Step By Step Guide About A Mortgage Loan Officer In 2021
Introduction Of Step By Step Guide About A Mortgage Loan Officer In 2021
Step By Step Guide About A Mortgage Loan Officer In 2021. How get your mortgage loan originator license and work as a loan officer 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 I’ve been in the field since 2013 and I think that it’s one of the best licenses to get not only that but I think it’s one of the best careers as well so I’ll walk you through what the job entails how to get your license step by step and pass.
How to start getting business in the field so let’s start with what a mortgage loan originator
The state exam and then how to start getting business in the field so let’s start with what a mortgage loan originator is aka a loan officer or a mortgage broker what you’re doing is you’re going to be helping people get a mortgage when they are buying or refinancing a house for home buyers you are working directly with them to see how much 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 a lower rate what this means is that there are a lot of prospective clients out there way more potentials at a given time than.
Those who would work with a real estate agent and that’s why I do think that becoming a loan officer is better than becoming a real estate agent now there is a common misconception and that is for most you’re not loaning out your own money to your clients rather you’re acting as an intermediary who builds a client’s loan application finds the right lender for them and then submits that application to actual lenders like united wholesale mortgage quicken loans problem funding new res there are a lot more some moss will actually work directly for a lender and will only submit loans to that company.
But others act as a middleman bringing clients to different lenders and receiving a commission and the latter is the one that I do you can choose later on which type of company you want to work for as this guide will apply to working with any type of mortgage broker or lender so now let’s go through the job responsibilities it’s your job to figure out the best mortgage for a client based on their income their savings their profession and a lot more, for example, you might decide whether or not your client should do a 30-year fixed loan a 7-1 adjustable-rate mortgage or a 15-year fixed as well as.
Which lender will be the best choice in terms of their interest rate and other factors you
Which lender will be the best choice in terms of their interest rate and other factors you’ll then work to build an application on behalf of your clients and then work with the underwriters to get that loan fully approved and funded which is no easy task so here are some of the qualities of a successful loan officer or loan originator you’ll need to be detail-oriented as you’ll be handling a lot of sensitive information from multiple clients that you need to keep track of you also need to know a lot about the real estate industry as well as the loan industry as these fields are constantly evolving you have to be good at talking to people and you have to be good at customer service because really with this.
The job you are working intimately with people and a lot of how happy they are working with you is going to be how easy you are to work with now when you work with one person and it goes well this is going to lead to a lot of referral business which is how most loan originators build their business so now let’s talk about these steps that you need to take to get your license and start working and the great news is that it does not take very long this is probably one of the quickest licenses to get out there with really an uncapped income and that’s why I think.
It’s so good to get so the first step is that you need to create an account with the nmls this stands for the nationwide multi-state licensing system and registry so what you’ll do is you’ll visit the nmls registration portal select the individual option enter the security code and then you will fill out the info and submit the application this is very fast it’ll probably take you a few minutes but it’s required for all 50 sites the second step is your education and this is going to vary a bit from state to state but overall the process is relatively unchanged the main thing you do to get your license is to go through 20 hours of mortgage education from an MLS approved school.
Where I took my course to get my license they have a lot of really great high-quality courses
So this is called the MLS safe course and it’s quite easy to go through now as far as which education company to go through I recommend going through learn mortgage and actually where I took my course to get my license they have a lot of really great high-quality courses and they also have a lot of study prep which I think is mandatory for passing the national exam they’ll also have continuing education which you will have to do once every year and yeah I recommend this and I’ll leave a link to it in the description below so now I’m going to take you guys through the learn mortgage platform and show you exactly.
What you need to do to start taking your classes so here I am at the learn mortgage site I’ll have a link to it in the description below but basically, you’re going to come here and you’re going to browse the state and nationally approve courses and you’re going to select your subjects so I’m going to click here and I’m going to click pre-licensing education now you’ll notice that they also have the compucram test prep they have continuing education they have late continuing education and a bunch of other stuff but if you’re trying to get your license right now click on pre-licensing education then you’ll want to select your state so this depends on what state you want to get your license in so I’m going to go here and I’m going to click California because that’s where I then click view courses.
So this will bring me to the whole pre-licensing education section and basically what I’m going to do here is I’m going to look at these California packages now you’ll notice that there are two options for California there’s the California dream and there are the California dpi if you’re not from California you can skip the next 30 seconds but if you are from California listen to this because it is a little bit confusing so let’s start with the dre the are basic issues mlo endorsements to people with real estate licenses so to select this option you’ll need to maintain a real estate license which makes it a bit harder to get and to maintain do not select this one.
I think for most of you guys you’ll probably want to select this one so now on the site you can see that
If you don’t have your real estate license right now or you don’t plan on getting your real estate license now for the dpi one you’ll want to select this one if you don’t currently have a real estate license or you don’t plan on getting one this one is a lot easier to get since you don’t need to get that whole real estate license and I think for most of you guys you’ll probably want to select this one so now on the site you can see that here we can see the dpi options right here and you have a 20-hour course and they also come in 14-day packages or seven-day packages now there has been some confusion about this and basically what this means is for the 14-day package this means that you cannot finish the course in under 14 days so if you don’t think you have too much time in the next two weeks to work on this class then.
This might be a better option for you but if you have free time in the next week and you want to get this license and finish this education then the seven-day package is probably gonna be better for you now these up here come with the compucram exam prep and if you guys want to pass the exam that you’ll be taking to get your license I recommend getting some type of exam prep you’ll learn from the class but where you’ll do most of your learning I think is from that exam prep and that’s going through all those practice questions so definitely highly recommend these top two right here or if you already have your real estate license and you want to get your lo endorsement then.
You’ll choose one of these two now if you don’t want to get exam prep or you want to find your exam prep elsewhere then you can click on these down here so if you’re doing the dpi option you can choose the 14-day package or the seven-day package or if you already have your real estate license you’ll choose one of these two okay so the third step is to pass the MLS mortgage licensing exam now to pass this test you can’t just go through that 20-hour course and expect to pass it you’ll need to do a lot of studying and what I recommend like I sort of showed you guys before is to use compucram it’s gonna have a ton of different practice exam questions and for me, that’s really.
Why I passed my exam on the first try and just to give you guys an idea
Why I passed my exam on the first try and just to give you guys an idea of what’s going to be on the test you can see that as of April 5th, 2021 here are the main content areas and the percentage of the tests that they’re going to be so you have federal mortgage-related laws and that’s going to be 24 of the test you’re going to have general mortgage knowledge that’s me 20 of the test mortgage loan origination activities 27 ethics that’s going to be 18 and uniform state content is 11 as far as the structure of the course it’s going to be 120 questions five of which are unscored pretest questions and for the time limit you will have 190 minutes for the test and as of right now.
You can do it online which is amazing you don’t need to drive anywhere and sit down to take the test now the test itself is not too hard but I do recommend putting in a good amount of work to study those exam questions if you do fail it you’ll have to wait 30 days before taking it again so yeah if you want to get your license as fast as possible just spend those few extra hours studying those questions and you should be good to go on the test now once you’re done studying you’ll need to schedule an appointment on the MLS website which is where you’re going to be paying the testing fee.
The steps for the application here in California they’re going to require fingerprints a background
Which will open the test enrollment for you then you’re gonna have 180 days to schedule the testing appointment and take the test now I do have some tips for you guys um there are gonna be a lot of questions and you definitely will need to be prepared that being said it’s not too hard like I said earlier the main thing is that you want to learn your key terms sleep well and just have gone through all those practice questions so step four after you’ve passed the test is you’re going to apply for your MLS license on the MLS website you’re going to go to the filing tab click individual and then you’ll click request new update if you already have an employer then they may be able to help you with paying these fees but yeah if you don’t have an employer yet don’t worry about.
That it’s just going to take you through the steps for the application here in California they’re going to require fingerprints a background check as well as a credit report and you’ll have to pay your filing fees and submit step 5 is to find an employer so the last step before you can start working and be fully licensed is to get sponsored by your employer just like with a real estate license you need to put your license under a broker you’ll want to find a local mortgage broker in your area and see if they’re looking to hire new loan originators you’re going to need a lot of training so the thing is that some mortgage brokers they aren’t going to be looking for new hires.