Vital Tips Toward Becoming a Loan 0riginator / Loan Officer From Our Experts!
Becoming a mortgage loan officer is a rewarding career that combines financial expertise with the satisfaction of helping individuals secure their dream homes. However, this profession requires more than just a general understanding of mortgages. To succeed, aspiring loan officers must meet specific education requirements, complete licensing exams, and develop a solid grasp of the real estate and financial markets. In addition, staying up-to-date with regulations, compliance standards, and lending practices is crucial to building a reputable career in the industry.
Navigating the path to becoming a mortgage loan officer can seem challenging, but with the right guidance and preparation, it’s a highly achievable goal. In this article, we’ll explore expert tips that will help you stand out from the competition, from earning the necessary qualifications and passing the NMLS (Nationwide Multistate Licensing System) exam to honing essential skills like communication and financial analysis. Whether you’re just starting or looking to enhance your current expertise, these insights will set you on the path to success.
First things first; have some cash reserves
- Some but few companies offer any type of salaries to new rookie loan originators. So plan on having 2 to 3 months cash reserves
- Remember that it takes 3 to 6 weeks for loans to close and you don’t get a commission check until your loan closes.
Be prepared to work full-time in your new career.
- Branch managers look dimly on hiring individuals who want to start off as part-time.
- If your not willing to make a commitment; neither will they!
Education Requirements:
We get this question all the time and it can be confusing depending on who you’re planning to work for.
If you’re planning on working for a mortgage Broker or mortgage Lender then you’re required to complete at a minimum the NMLS 20 hour Comprehensive PE course and pass the school’s final test.
- If you’re planning on working for a bank, savings and loan or credit union as a loan originator, you are not required to take any NMLS courses or test.
Registering and Getting Your Personal NMLS Identification Number
Before selecting an approved school to take your 20 hour Comprehensive PE course you’ll need to go to the NMLS Resources website and register yourself and obtain your free NMLS ID NUMBER. This number is used by the NMLS to track your progression through your training and testing and future continuing education requirements.
Your school must have your NMLS ID # so they can report your progress as passing to the NMLS database.
Easiest Way to Obtain Your NMLS ID Number
- CLICK HERE to Visit the NMLS Resources website
- Now that you’re on their website call their national call center at 1-855-665-7123. They are greatest call center ever created.
They will guide you through establishing your new user name and password and getting your ID number.
What should I do after passing my NMLS 20-hour Comprehensive PE course?
You completed your NMLS Pre-Licensing Course. Now its your job to review and study as much as you can of what was cover in your lessons.
- Plan on spending 15 to 20 hours of review before taking your NMLS national test.
- It is your responsibility to purchase and schedule your NMLS national test. The longer you delay in scheduling your national test the higher your probability of failing.
Where do I schedule and pay for my national test?
You will need to login into your NMLS account with your username and password. We suggest after logging into the NMLS resource center you call their national call center again at 1-855-665-7123. Just ask their staff to assist and guide you to where you can pay and schedule your national test. NMLS only accepts VISA & Mastercard for payments.
Additional Training Over & Above the NMLS National Test.
Some States require additional training over and above the NMLS 20 hour. Typically, this is an additional 2 to 4 hours course concentrated on that State laws and only pertain to that State.
We recommend you wait to take any additional state specific courses until:
- Pass your NMLS national test
- Get a job offer first.
How do I apply for my loan originator license?
Once you have obtained a job offer from a licensed broker or lender; now you can apply through the NMLS resource center website for your state specific license. Call the NMLS help desk for all assistance at 1-855-665-7123.
- If you have any type of felony arrest showing on your record; your need to contact your State’s Dept of Banking & Finance before paying for any training. Regardless of, if it’s a first time offender or any other type of plea deal you need to contact your respective State agency.
What other documents and forms should I have ready prior to applying for my license?
FAQ
Do I need a license to become a mortgage loan officer?
Yes, all mortgage loan officers must obtain an NMLS (Nationwide Multistate Licensing System) license. This involves completing a pre-licensing course, passing the SAFE Mortgage Loan Originator Test, and undergoing a background check.
How long does it take to become a licensed mortgage loan officer?
The timeline varies depending on the state and your schedule, but typically it takes a few weeks to a few months to complete the pre-licensing education and pass the licensing exam.
What skills are important for success as a mortgage loan officer?
Strong communication skills, financial analysis, attention to detail, and the ability to build relationships with clients are essential for success. Staying updated on industry regulations is also key.
How do I find clients once I’m a licensed mortgage loan officer?
Networking, building relationships with real estate agents, leveraging social media, and offering excellent customer service can help you establish a client base. Many loan officers also rely on referrals from satisfied clients.
What ongoing training is required for mortgage loan officers?
Licensed mortgage loan officers must complete annual continuing education courses to maintain their license and stay informed about regulatory changes and industry trends.
