Things To Know if You Want to Pursue a Career as a Mortgage Broker
If you want to be engaged in the real estate industry and you’re interested in what it’s like to work in the field, you might want to consider being a mortgage broker. So, what exactly is this job role?
Basically, mortgage brokers are professionals who assist people in buying a real estate property through a loan. People often seek their professional services to get advice and gain access to the best deals and rates around their area.
People often think that these professions are just the same. Well, there’s really a big difference between the two when it comes to their duties. Real estate agents assist buyers in finding or selling a property, while mortgage brokers help the buyer in financing to buy a particular property. Another kind are the va construction loan lenders, who help military members get special deals for their loans.
That will be your main job if you want to pursue this career. However, there are still many things that you should consider before deciding to be one. Here are some facts that you should know about being a mortgage broker;
A certain level of education is required.
There’s no specific course to be a mortgage broker. However, one should have a bachelor’s degree. Educational requirements are a must. Earning a background in finance, accounting, or business administration background is an advantage to qualify for this position.
You need to obtain a license to be an eligible mortgage broker.
Although obtaining a degree in the said courses is a significant factor, passing the licensure exam or National Mortgage License system test is part of the process. There will be a 20-hour pre-licensure program you need to attend before you can take the exam.
Mortgage brokers do not receive a regular salary.
This type of job is commission-based, wherein the salary of a mortgage broker depends on the sales they were able to make. They will only get their upfront commission once the mortgage has been funded, which is usually 1% of the loan amount.
However, there’s another payment method called a trailer. The mortgage broker won’t get the one-time commission, but instead, they will receive partial amounts monthly. Some brokers prefer this method to obtain a steady income.
There will be different work environments.
You can choose the way you want to work. You can work independently as long as you have connections. Or, you can be in a firm with the other mortgage brokers and professionals under the same company.
Either of the two, every mortgage broker follows the same work conditions and guidelines. You will assist a client, provide your recommended deals, and communicate with a lender.
Mortgage brokers are different from real estate agents.
People often think that these professions are just the same. Well, there’s really a big difference between the two when it comes to their duties. Real estate agents assist buyers in finding or selling a property, while mortgage brokers help the buyer in financing to buy a particular property.
Before deciding to pursue a career of being a mortgage broker, always do your research about this profession. Check if you are qualified based on the requirements needed. Review the methods of how you are getting paid since it’s not the same with most regular jobs. Lastly, try to assess if your personality suits the job.