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How to Become a Mortgage Broker

Some of us have a secret passion for real estate. You spend hours searching through houses online, looking at different zip codes and districts trying to find the perfect home- even if you have no actual intention of moving. The real estate industry is constantly growing and changing, making it an exciting field to get into. People will always need to buy homes, but buying a home is a lengthy and complicated process. If you have always had a keen interest in real estate, but don’t want to become a real estate agent, a mortgage broker might just be the perfect job for you. You have to be good with both numbers and people as a mortgage broker. You will have to communicate with customers and handle their finances to ensure they do not make any mistakes in the mortgage process. A mortgage broker is a crucial position in the home buying process, and becoming one is a lengthy journey. If this sounds like the job for you, here is how to become a mortgage broker:

1. You Must Pass the NMLS Test

First things first, to become a mortgage broker, you must first pass the NMLS test. But in order to pass the test, you have to complete a pre-licensure program. This requirement is the same for every state. It is a 20-hour long program that covers the federal and state laws about mortgages, in addition to financial regulations, loan officer ethics, and much more. Once you take the mandatory pre-licensure class, then you have to take the NMLS test. It will test you on your knowledge of mortgage practices, in addition to specific guidelines in your state. Make sure you receive the proper mortgage training to ensure you will pass the NMLS test on the first attempt so that you can start on your career. You must pass the exam with at least a 75% score.

2. Start Working

Once you pass the NMLS test, then you can actually start working and establishing your mortgage brokerage. You may get your initial job at an already established brokerage firm, or you can start your own mortgage broker business, which requires a business structure, business name, and more. The requirements for registering a business differ for each state. You then will need to decide if you want your business to be in person or online. A physical business will require renting an office for customers to access, while an online business is a more affordable option as you can just have a home office. However, having an online business is not allowed in certain states, so make sure you do some research before deciding.

3. Get Your Mortgage Broker License and Mortgage Broker Bond

Once you have completed the above two steps, you will want to get your mortgage broker license. The requirements to get this license differ for each state, but you will likely need to pass your exam, get the correct bond, and pay a licensing fee. Then, you can submit the application. Getting your mortgage broker bond is also important as it will cover your clients in case you make a mistake working as a broker. The amount of brokerage bond you will need depends on the state, but it is an important step in establishing credibility with customers.

4. Continue Your Training and Education

Accomplishing all these steps is important in becoming a successful mortgage broker. You will want to continue your education by taking courses throughout your career. The real estate industry is constantly changing, so to improve your career and stay on top of any developments, you will want to take various online courses. You will also want to communicate with other mortgage brokers to further your experience and knowledge in the field.

Becoming a mortgage broker is a lengthy, yet valuable process. A mortgage broker is a central aspect of someone’s home buying experience, so having the proper training is necessary. Follow these steps and you will be on your way to working in real estate in no time.

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