Steps to Becoming a Mortgage Loan Officer

When it comes to finding a side hustle or part time gig, there are plenty of options out there for you. One in particular that has the potential to generate a respectable income is a mortgage loan officer (MLO). The role of a loan officer is to help interested home buyers  obtain a mortgage to purchase their new home.  If you know anything about real estate, or like the idea of jumping into that industry, this could be a good fit.

Job Description

The job description of a mortgage loan officer varies greatly.  Mostly, it depends on the company you end up working for. There are financial institutions, such as Eagle Home Mortgage as well as banks and housing agencies, that advertise a need for MLO’s. In general, there are two types of mortgage loan officers,   residential and commercial.  In principle, both loan officers carry out the same responsibilities for different types of properties.

A residential loan officer helps with acquiring  and/or refinancing home mortgages.  A commercial loan officer, on the other hand, helps businesses purchase commercial real estate.     This might include shopping malls, office buildings, and warehouses.

The location you work in will also vary by the company you end up working for. There are some companies that prefer their MLOs to report to the office daily.   Other companies manage a remote workforce as their MLOs spend a bulk of their day marketing and advertising their services to customers. In a nutshell, the responsibilities could include the following:

•  Market, advertise, and network to find potential borrowers
•  Assist borrowers with selecting the right loan option for their financial circumstances.
•  Collecting loan applications along with pertinent data necessary
•  Communicating with real estate brokers, loan underwriters, escrow officers, attorneys, appraisers, and more.

Minimum Requirements to Become a Mortgage Loan Officer

There are several minimum requirements you’ll need to meet in order to be hired as a mortgage loan officer. In compliance with the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act), the government requires all Mortgage Loan Officers to be licensed and registered. Below is a list of what is required.

•  Criminal Background check – You’ll have to be fingerprinted and have this information sent to the NMLS for a criminal background check. Essentially you’ll be dealing with a lot of personal and confidential information and it’s important to ensure that the borrower’s information is in safe hands.
•  Education – While you don’t have to have a college degree, you will need to complete the pre-licensing education courses in your state.
•  Testing – After taking a few courses for licensing, you will need to take and pass the National and State, SAFE Mortgage Loan Officer Test.
•  Credit rating – Your credit history will be obtained and run through NMLS. Obviously, they’ll want to ensure that you can provide customers with the best advice as it pertains to credit and handling mortgages so having a decent credit history is ideal.

Once you’ve accomplished all of the above, the next step will be to find a company that suits your interests and supports your desire to succeed. From there, making  huge commission checks comes down to being able to adequately advertise, connect with clients, and assist them in purchasing a home. It’s a great side hustle that can lead to even bigger career opportunities down the road.

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