The job entails originating loans, marketing the company and most importantly yourself. You’ll do a ton of training and cold calling on real estate offices trying to convince the realtors why they should go with you and not one of the thousands of other loan officers asking for business.
The other parts of your day are spent cold calling former clients to refinance, checking rates, keeping in contact with current clients and monitoring the progress of current loans.
Make sure you really want to become a loan officer as it certainly is not for everyone.
Q: How can you get started?
Many will tell you to get a college degree, but the truth is having a head on your shoulders and being honest or much more important. Although you will have to cold call brokers and find one willing to break in a newbie without college, this sounds much harder than it really is.
It’s much harder to be honest in this industry, the dishonest companies simply lie to the borrowers and then take them to the cleaners.
The honest loan officer has to compete against loan rates that ARE to good to be true from the dishonest loan officers and still make money and build relationships.
Treat your customers like gold and not one time cash machines and you’ll end up much better off in the long run.
Q: What “should” be the best parts about being a loan officer?
Helping people fulfill their dreams.
Q: What are some of the challenges?
Some of the challenges are originating loans, the real estate market, finding a lender that best fits the clients needs and finding good honest realtors that are not looking for the fast buck, but looking to build long lasting business relationships.
Q: What skills are required to perform the job?
Some would include being professional, good at sales, knowing and staying current with the 100’s of available products, personable, being persistent and excelling at math are a must.
Q: What are the educational and licensing requirements?
Requirements differ by state, but it is generally a small fee and test. Although some states do not require testing and if you work for a bank instead of a mortgage broker you can generally bypass the state licensing.
Q: What compensation can someone expect to earn annually?
Frequently a commission job with no salary, unless you’re working for a bank. Income can range from $25,000 to $250,000+ a year with the average making $40,000 or less.
Q: What advice would you give someone looking to pursue this career?
A: Find a great mentor and learn the entire mortgage process. Most loan officers have no clue how to process the loans, they only know how to originate and close loans.
Learning how to process the loans as good as any loan processor will only help you throughout your career. If your looking to become a loan officer for easy money you might as well forget it, it takes extremely hard work and determination to succeed over the long run.