Get You A Mortgage Preapproval
A mortgage preapproval is a letter that spells out how much a lender may be willing to lend you to buy a home. To figure out how much that would be, an MLO uses preset financial formulas and standards. The preapproved loan amount which is based on a borrowers income, assets and liabilities is a handy number to keep in mind while youre house hunting because youll already know how much you can borrow.
What Do Mortgage Brokers Do
With a flexible schedule and a myriad of different tasks, Mortgage Brokers get to enjoy something new every day. While their main job responsibility is to find the best mortgage option for their clients, theres more that goes into their everyday duties. Here is a list of some of the responsibilities expected of a Mortgage Broker:
- Attract new clients
- Analyze the market to find the correct mortgage product for the client
- Go through legal disclosures with clients
- Complete lender application forms
- Submit necessary materials to the lender
Can I Be A Real Estate Agent And Mortgage Loan Officer At The Same Time
Both real estate agents and mortgage loan officers play an essential role in the home buying process. From start to finish, homebuyers should work with both professionals to find and finance a home.
Because their services go hand in hand, it is often recommended that independent mortgage professionals build strong relationships with real estate agents to offer a fast and easy experience for their clients and build a referral network. As such, however, it’s also a common misconception that working as both a real estate agent and a mortgage loan officer at the same time is a conflict of interest and not allowed. You can certainly do both, given your state and lender programs allow it along with providing the required disclosures to ensure you are in compliance with regulations.
In states like California and Florida, for example, many real estate agents are also licensed mortgage loan officers. They often choose to extend their services and expertise to streamline the home buying and financing process, ultimately, positioning themselves to also be more competitive in their market and ensure their clients’ overall experiences are the best they can be.
If you are interested in becoming a dual-licensed professional, check with your state to find out more about their specific approach and requirements before moving forward.
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Enjoy Job Security In A Growing Market
One of the major benefits of becoming a MLO is job security. As a mortgage loan originator, you have an in-demand career. According to the Bureau of Labor Statistics, the employment of loan officers is projected to grow by 8% from 2014 to 2024. Imagine never having to worry about not finding another job or losing the one you have.
This kind of job security and growth is seriously enviable! Lucky you!
Mortgage Broker Vs Loan Officer: Whats The Difference
A mortgage broker is a licensed financial service provider that works with multiple lenders to find the best interest rates and loan programs. A broker acts as an intermediary between the borrower and several lenders, but the mortgage brokerage company doesnt actually provide the money for the loan.
A loan officer typically works for one lender, which means they are limited to the products that a particular lender offers. A loan officer may work for a mortgage bank, credit union or institutional bank, and their employer can provide the funds for a home loan directly to a borrower.
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Does A Loan Originator Cost Money
Technically, yes, a loan originator does cost money, but loan origination fees are a standard part of closing costs. The loan origination fee may cover the processing and administrative work done by your loan officer, processor, and underwriter. The interest on your mortgage loan may help cover these fees as well. The disclosure forms you will receive as part of your mortgage application will include information on all the above.
Duties Of Mortgage Originators
Mortgage originators develop relationships with individuals in the real estate industry, such as agents or building contractors, with the objective of fostering and attracting future loan applicants.
Depending on the originators employer, they may need to perform cold calls as a form of telesales. To compile what is known as a loan package, the originator collects the documentation needed from a client for the mortgage application process, reviews the documentation, and processes the application before moving on to the next steps.
Information requested from the potential borrower includes proof of income and employment, bank statements, credit reports, etc.
On top of these duties, a mortgage originator administers the loan application process and estimates the rates and pricing related to the mortgage. They always keep themselves well-informed on the loan products and processes of a company and ensure they maintain a good communication channel with their clients.
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What Is A Mortgage Loan Originator
A mortgage loan originator, or MLO sometimes just known as a loan originator is an individual or entity integral to the mortgage loan origination process, or the initiation of a loan. From making first contact with the originator, to getting preapproved, to applying for a loan and on through to closing, the loan originator will help you move through the process as smoothly as possible.
Mortgage loan originators can work for a big bank, a credit union or other lending institution, large or small. It depends on where they work, but many are compensated based on commission.
Take Your Mortgage Application
When youre ready to start the loan application, the MLO collects all of your paperwork and required financial documents, like pay stubs and tax returns. Once everythings been submitted, the MLO hands your completed application over to the lenders underwriter.
MoneyTermUnderwriter
An underwriter meticulously analyzes your paperwork, finances and credit history, using what they learn to approve or deny loan applications.
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What Is A Typical Mortgage Loan Originator Salary
The answer to this question depends on whether the originator is independent or employed by a lender.
Mortgage brokers are independent of any one lender and work with a variety of products across lenders. They are paid either directly by the client or more commonly on a commission from the lender they give a loan to.
When an MLO is an employee of an individual lender, they work exclusively with that institution’s product offerings. Pay structure is going to be variable depending on company policy, but it’s typically a combination of commission plus an hourly rate or salary.
Top 5 Things To Know About Becoming A Mortgage Loan Officer
Becoming a mortgage loan officer, or MLO, specifically with an independent mortgage broker in the wholesale channel, is a promising career path that offers flexibility, unlimited earning potential, and growth. Mortgage loan officers or mortgage loan originators are representatives of independent mortgage brokerages that evaluate and originate residential home loan approvals for borrowers and often facilitate the process through approval and closing.
Once you know what a mortgage loan officer does, you may have more detailed questions about the path to becoming one. If youre interested in joining the wholesale mortgage industry, read on for answers to some frequently asked questions on becoming and excelling as a mortgage loan officer.
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Now That You Understand The Benefits Of Becoming A Mlo Are You Ready For Your License
If youre ready to get your hands on your MLO license without further delay, youre in the right place.
Because we know what it takes to pass the NMLS exam even if you have NO real estate background and even if its your first attempt.
Put simply. a Mortgage Loan Originator is defined by the SAFE Act as an individual who for compensation or gain, or in expectation of compensation or gain, takes a residential mortgage loan application, or an individual that offers or negotiates terms of a residential mortgage loan.
Did YOU know that you can become an MLO even if you have NO real estate experience? Thats right.
There Is An Endless Amount Of Perks And Benefits
Lets break down the semantics of the job market. Since the job market for mortgage loan officers is growing substantially year by year. Since the need for loan officers is increasing, especially with baby boomers leaving the job market, a great majority of loan companies will provide numerous perks and benefits to their mortgage loan originators that go above and beyond the standard origination fee. These perks and benefits include health insurance, payment increases, sales commission, 401k, and mortgage and advertising leads.
In addition, some companies actually add on a few more specific perks for instance, some loan companies offer free gym membership, catered lunches, and extra vacation days. In actuality, the U.S. News & World Report concluded that loan officers were essentially able to establish great and comfortable lives at home and abroad. In all honesty, becoming a loan officer is downright rewarding, especially in the growing economy. With the constant demand and need for loan officers, more and more loan companies are going to extend valuable perks and benefits in order to stimulate the economy.
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Do You Offer Assistance Programs For Down Payments
Some lenders may offer down payment assistance programs and closing cost assistance programs. If approved for an assistance program, you may be able to move into your new home more quickly, select a 30-year loan at a fixed rate or get discounted private mortgage insurance.
Down payment assistance programs usually come in the form of:
- Loans to be repaid alongside your mortgage
- Loans to be repaid when you sell, move or refinance
- Grants that you dont have to repay
Down payment assistance programs can be a particularly helpful option for first-time homebuyers who have little savings but dont want to delay moving into their dream home until they save a 20% down payment. Since saving enough for a down payment can take years for many would-be borrowers, these assistance programs can make a big difference in your ability to obtain a mortgage for your dream home.
What Is The Best Type Of Mortgage For Me
Make sure to provide the loan officer with plenty of details about your situation and answer the questions they ask you. They may recommend certain loans for you, so ask for those options to be put in writing. This will help you learn about each type of loan and its strengths.
Ask about details you may not completely understand. If a number seems high or surprising, ask the loan officer to explain.
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What Is A Mortgage Loan Officer
A mortgage loan officer is a financial professional who helps families and individuals acquire loans when buying real estate. The role of a mortgage loan officer is to check the credit of clients and determine how much money they are eligible to borrow. For example, a first-time homebuyer will often consult with a mortgage loan officer before submitting an offer on a house.
Whats A Typical Mortgage Loan Originator Salary
The average mortgage loan originator makes just over $63,000 per year, according to the U.S. Bureau of Labor Statistics.
But remember MLOs are typically not salaried, theyre paid on commission. So a mortgage loan officer making a lot of loans in high-priced cities or markets could take home much higher pay.
That said, some newer mortgage companies are doing away with the commission-based pay model for loan officers.
Better Mortgage, for instance, has done away with MLO commissions in a bid to make lending more transparent for borrowers. In Betters estimation, a no-commission model ensures loan officers always have the borrowers best interest in mind.
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You Get A Flexible Schedule
One of the best advantages of becoming a mortgage loan originator is that you get a flexible schedule. What does that mean? You get to choose your own hoursbasically whatever suits you. As a matter of fact, you can choose the time you spend in the office and time you spend working remotely. For example, a commercial loan officer is prone to spend a lot of time away from the office and more time communicating with their clients on the phone or electronically. However, most loan officers have meetings from time to time and other events on weekends and holidays. Still, more often than not, loan officers are generally able to determine their own schedule.
According to the U.S. News & World Report, loan officers are ranked as above average in categories such as schedule flexibility while maintaining a normal life. Ultimately, this means that many loan officers are able to distinguish a fine line between a comfortable life and work.
What Does A Loan Officer Do
A loan officers job description varies from lender to lender. However, most mortgage loan officers are responsible for the following tasks:
Vetting the information on your loan application. The Uniform Residential Loan Application form is divided into nine sections, and its the loan officers responsibility to spot any inconsistencies or missed questions to avoid delays and confusion.
Collecting documents to support your loan request. A good loan officer knows what documents to request whether its tax returns for a self-employed borrower or letters of explanation for credit blemishes to speed up and maximize your odds of approval.
Helping you negotiate the best mortgage program terms based on your finances. An experienced loan officer is well-versed in the guidelines, closing costs and interest rates of a wide variety of loan programs offered by lenders they work for. Theyll answer questions you have about different types of mortgages, and explain why the program theyre recommending is a good fit for you. Theyre also responsible for providing a loan estimate three business days after you apply for a loan, and a closing disclosure three business days before you close.
Tracking deadlines and helping you close your loan. Loan officers track important milestones to ensure you close by your contract closing date when youre buying a home. They also keep an eye on your mortgage rate lock expiration date, so you dont end up paying expensive extension or relock fees.
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Loan Officers Genuinely Help People
Perhaps the greatest benefit of becoming a mortgage loan originator is that you get to help people. It is every young adults dream to purchase their first home and by becoming a loan officer, you are bringing their dreams closer to reality. More often than not loan officers will feel rewarded knowing they are helping someone obtain something. In this sense, a mortgage loan originator has the job of helping people buy a home and make choices that will follow them for the rest of their lives.
In conclusion, there are many benefits of becoming a mortgage loan originator. However, these are not the only advantages. If you are truly interested in breaking into this great career field, go ahead and start your own research into this career. Youll soon find out that the pros definitely outweigh the cons.
What Are The Licensing Requirements For Mortgage Loan Originators
Becoming a mortgage loan originator requires either obtaining a state license or being federally registered as an MLO.
In order to obtain federal registration, the individual has to be an employee of a depository institution , or an employee of an institution overseen by the Farm Credit Administration. MLO federal registrations are recorded in the Nationwide Mortgage Licensing System and Registry . You can visit the NMLS consumer database to confirm your MLOs registration.
State licensing requirements vary slightly, but typically involve providing fingerprints for an FBI criminal history background check, undergoing a credit report check, taking NMLS pre-licensure education courses and then passing an exam.
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What Is A Mortgage Broker
A mortgage broker originates loans for a network of lenders. Because brokers dont work for one particular lender, a broker can show you interest rates and terms from different lenders, making it easier for you to compare. Mortgage brokers can also act as MLOs, helping borrowers complete the loan application and gather paperwork. They also work with the lender on your behalf right up to closing.
Understanding The Difference Between Mortgage Brokers And Loan Originators
With so many different titles and jobs within the mortgage industry, its easy to confuse the responsibilities that each holds. While Mortgage Loan Originators and Mortgage Loan Officers are essentially the same role, they differ largely from a Mortgage Broker. The main difference between these titles is that Mortgage Brokers are employed by a Sponsoring Broker, while Mortgage Loan Originators and Officers are employed by a bank or mortgage company. Both Mortgage Brokers and MLOs are licensed nationally by the Nationwide Multistate Licensing System . This guide will dive deeper into what a Mortgage Broker is and what makes that title different from other mortgage professionals.
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Coordinate With Other Parties
While you work to close an offer on your home, the MLO will be in communication with several parties to ensure the closing process goes smoothly. Diaz says this can include anything from fielding requests from your underwriter, answering questions from your real estate agent, or negotiating fees with the title company.
