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How To Get A Job In Mortgage Lending

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Get Paid Well Then Get Paid More

Getting a Mortgage With a New Job

Mortgage lenders generally make good money. Though some are on a flat salary, most make the bulk of their income on commissions. The low end hovers around $35,000 annually, while median pay is about $60,000. Skilled lenders can take home $300,000 or more per year. Its a job that rewards hard work, too. Because lenders are usually paid on commission, the difference between the low and high earners has more to do with how much time and effort they put into the job. If youre tired of jobs that pay based on seniority over quality of work, you might find being a lender is more rewarding.

Mortgage lending requires a certain kind of personality. Not everyone will thrive in the role. But its the perfect option for an extrovert with great communication skills and a strong desire make an intimidating process more enjoyable for everyone involved. If you have the right temperament for the job, mortgage lending can be an incredibly rewarding career path.

Now, potential mortgage lenders simply need to know where to start to get into the space! Ready to start your career in mortgage lending? Were always looking for great new talent to join the First Option Mortgage team. And dont forget to join us on and too!

How To Impress A Lender

First, enroll in a pre-purchase home buyer education workshop offered by a HUD-approved housing counseling agency in your area. “Your proactivity will make you an attractive candidate for mortgage financing,” says Levar Haffoney, managing principal of Vedere, which offers financial planning and wealth management services.

Next, “Be mortgage ready,” says Lynnette Khalfani-Cox, known as The Money Coach, a personal finance expert and author of “Your First Home.”

Being “mortgage ready” means understanding the reasons mortgages are denied and addressing any potential issues before you approach a lender to the best of your ability. The LendingTree study included an analysis of factors that contributed to loan denial debt and credit history are the biggest barriers.

Mortgage Loan Underwriter Skills

A mortgage underwriter is the person that makes the decision to approve or deny your loan application. In considering your application, they look at a variety of factors, including your credit history, income and any outstanding debts.Underwriters serves as an financial expert who takes a look at your finances and determines how much of a risk a lender will take on if they decide to give you a loan.

Also Check: What To Expect When Applying For A Mortgage Loan

New Job And New Industry

Using the example from above, the teacher that turned accountant needs to show that he or she can succeed in the new position. Without a 2-year history, that can be hard. But there are ways. If you can show that you received the proper training or education to succeed in the job, it can help. Lenders need proof of official education and/or training that show your likelihood of succeeding at the job.

You may have to jump through a few more hoops or wait until you are at the job a little longer to use a new job in a new industry. It is possible to get approval without waiting two years, though. Just make sure you have ample proof of your ability to succeed at the job.

So You Want To Be A Loan Officer

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If youre interested in career opportunities in the mortgage lending industry, loan officers are in high demand.

Loan officers are the point of contact between the financial institution and the borrower through the application process. According to the U.S. Bureau of Labor Statistics, the average salary for a loan officer is $63,270 per year. However, compensation can vary depending on your level of experience, state of residence, employer, and whether or not you get a commission originating a loan.

When hiring for this position, most companies look for candidates that have a bachelors degree, ideally in finance, business, or economics. For high school graduates, companies like to see at least two years of experience in the field. There are talented people from other walks of life that can transition to this field well, said Richardson.

That being said, its not a walk in the park. Those interested in becoming mortgage loan officers must first be licensed as mortgage loan originators through the NMLS. While most companies fund the cost of attendance, licenses can be anywhere from $300 to $900 and are renewed on an annual basis. In some cases, training can extend for up to 4 months. Some states have some rigorous, not only pre-education requirements but also post-education, adds Richardson. This role is an investment of time, and you have to prepare for continuing education every single year.

Read Also: What Banks Look For When Applying For A Mortgage

What Sets You Apart From Other Loan Officers

This is another way of employers asking why they should hire you. Be honest and be compelling. Share a quality or experience you possess that other candidates wont bring to the table. Explain what makes you a rare candidate.

  • Other loan officers Ive worked with in the past struggle to meet their deadlines. With strong organizational and time management skills, Ive never missed a deadline and can submit loans for processing on time.

You Can Use Your Retirement Accounts Hardship Withdrawal But Avoid It If Possible

Many retirement accounts offer individuals whats called a hardship withdrawal, where individuals under financial distress can tap into their accounts for immediate cash. Congress third coronavirus bill also included measures allowing affected individuals to withdraw up to $100,000 penalty-free from their 401 or IRA, though theyd still have to pay income taxes on it.

If you utilize an employer 401, you can take advantage of a self-funded loan if your employer will allow it, Hamrick says. Tapping into the self-administered Roth IRA if you have one is also on the table.

But while its always an option, experts say it should be a last resort. It sets back your retirement savings significantly, while also leaving you susceptible to piling penalties and fees if you arent careful.

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Do You Need A Degree To Become A Mortgage Loan Officer

A person seeking to become a mortgage broker must be at least 18 years old. A bachelor’s degree and some experience in finance and sales is helpful to becoming a mortgage loan officer, but is not required. … All state-licensed loan originators must pass a national exam – required under the SAFE Act.

Why The Mortgage Industry Is Hiring

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Industry experts say that the spike in job postings is due to record low interest rates, which are driving a surge in applications for purchase and refinance loans. In turn, mortgage lenders need to expand mortgage banking, operations, and customer service teams to meet demand. Earlier this spring, mortgage lenders were struggling to keep up with the increase in refinancing demand. As a result, companies like JP Morgan Chase raised requirements to qualify for a mortgage, while others stopped accepting applications overnight.

Interest rates have really influenced our hiring practices, and there are huge growth opportunities on the operations side right now, said Van Richardson, chief executive officer at FILO Mortgage, a Pennsylvania-based mortgage company that launched in January.

Big players such as Quicken Loans, one of the largest originators of home mortgages in the U.S., have hired more than 1,500 people since the coronavirus pandemic began. According to reports, the company plans to hire an additional 1,500 over the next two months, including over 600 interns.

Similarly, California-based loanDepot announced plans to hire 3,000 new employees by the end of this year. The company hosted a virtual job fair on LinkedIn in the spring, and nearly 500 applicants attended the event.

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Are Licensure Or Certifications Needed

The licensure and certification requirements for loan officers can vary by state. Typically a Mortgage Loan Originator license is required for processing mortgage loans. The American Bankers Association offers certifications that will need to be renewed every three years. Common loan certifications to obtain are as follows.

  • Certified Financial Marketing Professional
  • Certified Lender Business Banker
  • Certified Trust and Financial Advisor

What Are Todays Rates

Mortgage applicants are getting approved at the highest levels this decade. Even if you think you cant receive an approval, its worth checking your home mortgage eligibility.

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What Is A Mortgage Preapproval

When youre shopping for a mortgage, you can compare options offered by different lenders.

Mortgage lenders have a process which may allow you to:

  • know the maximum amount of a mortgage you could qualify for
  • estimate your mortgage payments
  • lock in an interest rate for 60 to 130 days, depending on the lender

The mortgage preapproval process may be divided in various steps. It may also be called mortgage prequalification or mortgage preauthorization. Different lenders have different definitions and criteria for each step they offer.

During this process, the lender looks at your finances to find out the maximum amount they may lend you and at what interest rate. They ask for your personal information, various documents and they likely run a credit check.

This process does not guarantee your approval for a mortgage.

Mortgage Loan Originator Skills

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Mortgage loan originators gather important client financial information to review if they are eligible for granting mortgage loans. Next, they complete mortgage loan applications based on national and local financial standards and review their progress. This often includes meeting with mortgage loan borrowers on the phone and in person, advising and guiding them throughout the entire loan process.

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What Do You Know About Our Company

To see if candidates have done their research or are interested in the company, interviewers will often ask candidates what they know about the business. Answer this question by sharing what youve discovered about the company in your research. Definitely touch on what the company does as a whole, but also on what makes them unique. Is there a niche focus area they highlight on their websites About Us page? Has something theyve done recently been in the news? If so, call that out in your answer and share why it aligns with why you want to work there.

  • I know that XYZ Financial is focused on providing simple, helpful financial tools to their clients, allowing them to save, borrow, and transact finances with confidence. I think that vision aligns well with my skills and experience.

The Numbers That Matter More

Lenders are more interested in your three-digit credit score, which shows how well you’ve paid your bills and handled credit in the past, and your debt-to-income ratio. This ratio measures how much of your gross monthly income is gobbled up by your monthly debt obligations.

Lenders want your total monthly debts, including your estimated new mortgage payment, to equal no more than 43 percent of your gross monthly income. If your ratio is higher than that, you’ll struggle to qualify for a loan. Lenders also view three-digit FICO credit scores of 740 or higher to be excellent scores. Scores in the 700 range will generally net lower mortgage rates and easier approvals.

If these two numbers are strong, that two-year job history isn’t as important. As long as you have enough income to support your monthly payments, most lenders will overlook the fact that you took a new job three weeks ago.

“The two-year job history is a myth,” said Bob Gordon, real estate agent with Berkshire Hathaway in Boulder, Colorado.

Gordon pointed to the two recent college graduates, both with no work history, whom he helped buy homes in the Boulder area. The two buyers hadn’t even started the new jobs they accepted, presenting lenders only with a letter of intent from their new employers. The two also had short credit histories, but they were good histories, with no missed or late payments on their records.

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Why Cash Reserves Are Important If Youre Changing Jobs

Cash reserves are funds that can be converted into cash quickly, such as the balance in a checking or savings account. In order to qualify for a mortgage before youve received a pay stub at your new job, youll have to show you have enough reserves to cover your mortgage payments and other monthly liabilities in the meantime. Conventional lenders also request an extra one-month payment cushion.

How To Get A Mortgage Without A Two

How to get a mortgage without a 2-year job history

October 7, 2019 By JMcHood

Youve likely heard that you need a two-year employment history to get a mortgage. Many people take this literally and assume if theyve been at their job less than two years they cant get a mortgage. Thats not the case today.

Lenders look at the big picture. They want to know how likely you are to default on a loan. If you are at your job for less than two years, it doesnt automatically mean youll default on your loan. So what exactly do lenders look for when qualifying you for a loan? Keep reading to find out more.

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How Long Do I Need To Be In My Current Job Before I Can Apply For A Home Loan

Different lenders each have their own criteria for employment, but there are general guidelines to be aware of.

Many Australians currently find themselves in new jobs due to Coronavirus and other reasons. As of January 2021, mortgage interest rates are at all-time lows, with some lenders offering rates of under 2.00%. Read on to understand how to get a home loan when you’re in a new job.

The nature of your work can have a big impact on whether you secure a home loan.

Its not uncommon, for instance, for home buyers to be knocked back for a loan even by the bank theyve always used, just because of their employment status.

This highlights how being an established customer of a bank is no guarantee that youll be offered a home loan.

What matters is the length of time youve been in your current job the longer, the better. Heres what you need to know.

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If youve lost your job during the coronavirus pandemic, youre not alone.

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Do I Need To Wait To Apply For A Mortgage

If youve just started a new job, some lenders will tell you that you need to wait at least six months before you can apply for a mortgage, but others will consider approving your application after just three, or even less. If you cant wait that long, the good news is that there are lenders with no minimum timeframe for this, but keep in mind that you might need a mortgage broker to find them.

It will certainly help your cause if youve been in continuous employment before starting your new role, as some lenders will expect 2-3 years worth of income proof before theyll even consider your application. Other lenders might be happy with less than that, and a minority are known to have no minimum requirement on this but, at the very least, youll need evidence of your employment and affordability, and may be subjected to extra underwriter scrutiny.

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