How to Become a Mortgage Broker

Career as an Agent in the Lending Industry

Aug 15, 2009 Fleur Hupston

Now more than ever, consumers want qualified brokers to give objective and professional advice. A career as a mortgage broker can be both rewarding and lucrative.

The mortgage loan industry has tightened up over the last couple of decades on a global scale. In previous years, the mortgage market was under-regulated. The increased controls mean that mortgage brokers need to be well qualified and very professional.

Mortgage Broker Job Description

Marketing to attract clients
Assessment of the borrower's circumstances. This may mean an appraisal of their credit records and an assessment of their affordability
Scouring the market to find a mortgage product best fitted to the client's needs
Applying for a lenders agreement in principle (pre-approval)
Compiling all necessary documents (pay-slips, bank statements and all other relevant documentation)
Completing a lender application form
Explaining the legal terms and conditions to the client
Submitting all material to the lender
Following through and making sure the deal is closed

Qualifications and Licensing Requirements

When hiring mortgage brokers, lenders typically look for individuals with strong sales skills, a college degree or equivalent, strong computer skills and the ability to work flexible hours.

Each country has different laws and requirements that must be met. In the UK, rigorous training must be undertaken and exams must be written. In the US, every state has different laws, and different requirements that must be met – in some states, a mortgage broker is the same as a loan officer, in others it is totally different. An online search will reveal what qualifications are necessary in the applicant's country or area of residence.

The same applies to licensing – the industry is far more rigorously regulated than in the past on a global scale so an online search is the best way to find out about licensing requirements in a particular area.

Before embarking on this career, potential mortgage brokers should ask themselves if they enjoy dealing with people and helping them with their finances and if they have the commitment and drive to follow through with the required training. The work may be demanding with the possibility of evening and weekend work time.

Bear in mind that certain situations can be challenging, such as when a client has a bad credit history and needs to re-mortgage his or her property, or when clients are first-time buyers and have affordability issues.

How Much can a Broker Expect to Earn?

According to Payscale, salaries for mortgage brokers average $60,500 annually. This ranges from around $30,000 earned in the first year to over $100,000 annually with additional experience. Mortgage brokers' earnings are commission-based and vary a great deal. As with any sales position, much depends on hard work, dedication and the broker's ability to close deals.

People will always be buying, selling re-mortgaging their properties. In times of financial crisis, there is even more of a demand for expert advice and the services of qualified mortgage brokers.

Sources:

Payscale.com

"Mortgage Broker License Requirements", Mortgage News Daily.com

How to Become a Mortgage Broker

Career as an Agent in the Lending Industry

Mortgage Broker Job Description

Qualifications and Licensing Requirements

How Much can a Broker Expect to Earn?

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