How to Become a Mortgage Broker

Mortgage brokers help borrowers allocate funds for the purchase of real estate. Usually, they begin by examining the financial picture of a client and determine if a client is qualified to purchase a home. In order to do this, they have the clients fill out an application and then collect supporting documents such as bank info, assets and liabilities. The broker then sends this information out to banks to see which one will lend the money and see what the interest rates are.

Job description

Once the broker receives the supporting financial paperwork, they then call the client and discuss which options are available to them. They also explain the different types of offers and help their clients decide which option is best for them. Mortgage brokers break down the interest rates and compare them to give various monthly payment options and terms.

Mortgage brokers can work in mortgage companies, working either independently or in partnerships. On a typical day, a broker will be on the phone and and will have constant contact with people including clients, real estate agents, lawyers, appraisers, banks and insurance companies. This is not a 9 to 5 job, you must be available to clients and most people worked throughout the day. Most brokers make appointment after work which means you usually have to work evenings and on weekends. They also tend to work longer in the summer because people like to buy homes in the summer.

Education and training

Mortgage brokers are licensed by the state. Exact educational requirements will vary from state to state. Some states require brokers to complete college or university level courses in real estate and finance. Mortgage broker education programs provide instructions in areas such as regulation, laws, ownership, appraisal and credit. In addition, students will learn about the day-to-day operations of the mortgage broker and the real estate business.

Also, most states will have course training programs and a state process for the broker. Many require at least two years of courses in order to be eligible for testing. The tests are conducted on the state level and there are background checks that are also required. Usually the state checks for government fraud or other types of fraud.

Earnings

The money that mortgage broker's earn can come from various sources. The central source of income for a mortgage broker is commission they obtain from the lender for bringing them a buyer's business. Lenders also sometimes pay arrangement fees to brokers and they earn some money this way. Some brokers also charge for each mortgage they negotiate while others may receive money from insurers for the life insurance and general insurance they arrange for buyers. Most who start out in this field can make around $40,000 per year, while those who have loads of experience can make close to $100,000 per year.

Suggested qualifications

A broker should have good people skills. Negotiating with banks and trust companies is also common straight going to have to have some good business skills and not be shy about stating your opinion. You must also have constant communication skills and be very organized in order to be successful in this career at times it can get stressful, like any job.