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Become Mortgage Broker - How to Become a Mortgage Broker - Qualities Needed to Become a Mortgage Broker

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Although it seems they’ve been around forever, mortgage brokers are a relatively new phenomenon in the world of lending. Many people confuse mortgage brokers with loan officers, but there is one important difference between the two – loan officers work directly for a lender, while mortgage brokers work as an independent intermediary between a lender and a borrower. A single mortgage broker deals with multiple lenders and goes with the one that provides the borrower the best deal in their specific situation.

The requirements to become a mortgage broker are very similar to those of a loan officer, except that mortgage brokers must be licensed by the state. Loan officers usually work under the license of their employer. The expected growth rate of the industry is only slightly higher than that of loan officers. Growth rate of loan officers is 10 percent, while the growth rate of mortgage brokers is 11 percent. The median annual salary of mortgage brokers is $60,500, and can rise to over $100,000 with experience.

Qualities Needed to Become a Mortgage Broker

At their heart, mortgage brokers are specialized salespeople. Many of the same qualities that make salespeople successful will help to make mortgage brokers successful. Some desirable qualities in becoming a mortgage broker include the following:

• Multi-tasking – Mortgage brokers must be handle to handle several clients in various stages of the loan process. Some brokers work with up to 50 clients at the same time.
• Mortgage brokers must be able to work independently and handle all the needs of a client without support.
• You must have a good working knowledge of mathematics, marketing, finance, and the economy.
• People skills – Mortgage brokers must be personable and social.
• Effective communication is important. You must be able to write and speak well.
• Flexibility – Mortgage brokers must be able to work odd hours and be on-call for clients.

Educational Requirements to Become a Mortgage Broker

There are no strict educational requirements to become a mortgage broker. Classes in Sales, marketing, finance, and economy will help mortgage brokers to be successful, but no degree is necessary. Because of this, many mortgage broker training courses are available from both accredited and non-accredited institutions. These courses are available in both traditional and virtual classroom settings. In addition, the National Association of Mortgage Brokers (NAMB) offers additional training and educational resources.

Licensing and Certification to Become a Mortgage Broker

Currently, 45 of the 50 states require mortgage brokers to be licensed. Although the licensing requirements vary by state, they have a few elements in common. Licenses require a fee and usually a set of credentials that can include passing a background check (felons are restricted from many forms of state licensure), passing a credit check, providing letters of recommendation, submitting a resume with educational and professional experience, and passing an exam on mortgage and lending laws.

In addition to state licensure, NAMB offers three levels of certification that are not necessary but can help with establishing credibility with prospective clients. Level of certification depends on formal education, self-education, and experience. The levels are as follows:

  1. General Mortgage Associate
  2. Certified Residential Mortgage Specialist
  3. Certified Mortgage Consultant
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