Why I Went Into The Mortgage Industry
I just realized last Thursday that I have spent two full years at Better, incidentally on the same day as we announced a $15M round led by Kleiner Perkins. So it was a good point to reflect a bit and think back what the F led me to abandon my role managing the machine learning team at Spotify? To join some random startup in the world’s most boring industry? So here’s my justification why I love being where I am:
Work With A Brokerage Firm
Gain experience in the mortgage industry after securing your license. Consider an internship to network with a local firm as you earn the necessary qualifications. Create contacts by attending training seminars or professional events. If you intern or start a job with a mortgage firm before you complete your introductory coursework and NMLS license, your company may assist in paying the registration and associated fees for testing.
What Not To Say
Dont Focus on Company Perks. Dont just focus on the companys benefits and perks. Maybe their health insurance is good, or they give lots of sick leave. Dont talk about any of those things.
Dont Talk About Salary. Dont talk about salary unless the interviewer brings it up.
Dont Get Personal. Dont start any personal conversation with the interviewer.
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We Offer Several Loan Options For Our Customers How Can You Make Sure You Suggest The Best Loan For Each Person Based On Their Situation
Hiring managers may ask this question to determine how much experience you have working with different loans and if you have the customer’s best interest in mind. Consider sharing how you’ve helped customers select the best loan in the past and how this action benefited them or the company. You may also list several types of loans that you’ve worked with to showcase your expertise.
Example:”Throughout my career as a loan officer, I’ve matched hundreds of customers with the best loans for their situation. I understand different loans work for different people, so I make sure to listen to my customer’s needs and gather as much information as I can to help them make an educated decision. While I’ve worked primarily with FHA loans in the past, I have experience with several other types of loans and I am committed to matching our customers with the loan that works best for them so they continue to refer us to their friends and family members.”
Which Areas Are You Concerned With While Reviewing A Loan
The recruiters test your adeptness at being a potential loan officer by asking you about the most important areas to focus while reviewing a loan. Research about the factors to be most concerned with while approving or rejecting a loan.
Sample Answer
Reviewing a loan means taking into account the risk factor accurately before accepting or rejecting it. For this work, I focus on the credit, capacity, and collateral of the borrower to evaluate the risks involved. I am also concerned with the present debt load of the client and also verify their income sources to understand their ability to pay off the loan and service it.
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Outstanding Research Skills To Uncover Financial Information
Financial records can be complex and broad. As a credit investigator, you need to have good research skills in order to dig into a borrowers financial history and find the qualifications youre looking for. As a good researcher, this shows employers that you can scan several sources of financial information to determine a borrowers creditworthiness. And to help you in your research, financial expertise is a necessity as well because it helps investigators know what to look for.
How To Find Mortgage Loan Officer Jobs
Now that you know how to become a mortgage loan officer, youll need to pitch yourself to employers with a solid resume and cover letter that will maximize your chances of getting hired. While youre writing, make sure to highlight the top qualities that employers are looking for in a mortgage loan officer, including:
- The ability to decide whether to approve a loan based on an applicants financial information
- Keen attention to detail and good judgment
- Strong interpersonal and marketing skills
- The ability to reach out to potential borrowers to promote your financial institution
For more tips, take a look at Monsters sample mortgage loan officer resume.
After your resume and cover letter are in tip-top shape, its time to start searching for mortgage loan officer jobs. According to the Bureau of Labor Statistics , the top five states with the most mortgage loan officer jobs are:
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Now Could Be The Perfect Time For Career Advancement
During a record-breaking year and amid a global pandemic, many mortgage lenders faced unprecedented challenges related to compliance, volume, and quickly-shifting regulations. This ultimately created opportunities for existing employees to level-up their leadership skills and earn greater responsibility. Folks who just started out are now managers just because of the growth weve experienced in the last year, one participant noted.
Other panelists added that career advancement can also be a mechanism for diversifying teams. If youre feeling survivors guilt by advancing your career when others are losing their jobs, look at things differently and see the opportunity to bring others into this industry by growing your team, Paolino said.
Why Do You Particularly Wish To Join Our Financial Institution Instead Of Others
Recruiters would like to hear an honest answer here to see why you are keen on joining them. Research well about the bank and mention positive reasons why you wish to work with them and not just any bank for the sake of money.
Sample Answer
Even though there are quite a lot of financial institutions catering to clients, I would like to be a part of this company because of its great reputation. The selection of loans offered here and the utmost dedication towards customers has made it a renowned and trustworthy institution. It would be an honour to extend my skills and capabilities towards the progress of the company.
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Why Do I Want To Be In The Mortgage Industry And Fha Lending Guidelines
FHA insures owner-occupied residential mortgage loans that meet certain criteria, so why dont mortgage lenders follow those rules?
- If FHA guidelines allow an applicant to have a 580 credit score, why wont some banks?
- It can be very frustrating for those borrowers because they dont understand the overlays that some banks may have
- This is partly why some banks can do certain loans and others simply cannot
- These borrowers are underserved and it ignites a fire within me
- The good news is that there are lenders who will serve the underserved
- I wanted to be a part of that network that helps those borrowers in these types of situations
- I want to be in a position to lift people up and help guide them along the way so that they can see some of their dreams come true
- After all, there is no greater joy than being a part of something that helps someone else
- So, why do I want to be in the mortgage industry?
Simple, I want to help those borrowers that the other banks would not.
Great Organizational Skills For Maintaining Accurate Records
The loan processor is the member of the mortgage team that files mortgages with the correct government entity. To do this, loan processors need to be highly organized to ensure that mortgage documents are filed with the correct parties. Missing this step could result in penalties for the institution, making organization a must-have skill for processors in order to protect the company.
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Choose A Path For Your Future Development
Careers in the mortgage industry are divided into two distinct paths: front-end mortgage origination and mortgage servicing. Each involves its own set of skills as your career develops, but both will reward a competitive mindset.
Front-end and service sides both have opportunities, and youll typically choose a path early in the development of your mortgage career, says Moraros. It gets harder to switch from one to the other later on.
Before striking out either direction, familiarize yourself with the roles, responsibilities and tasks associated with each area to determine if they feel like the right fit.
Tips For Working In The Mortgage Industry
Here are some ideas to help you begin your career:
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Work on your negotiation skills. Learning how to negotiate contracts for clients can help you advance your career and build trust with your customers. The more you practice these abilities, the more you can grow your confidence as a service provider for borrowers.
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Stay organized. Mortgage professionals routinely file and submit key documents for lenders and clients. Ensuring all documents are collected and sent to the right entity is an essential part of the mortgage process.
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Take time to network. Making connections in the industry can help you build a client base and connect you with lenders. Meeting other professionals in your field also allows you to get referrals from friends and key contacts.
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Hone your analytical abilities. Many roles in the mortgage industry use critical thinking skills to assess risk and make predictions in a loan application. Mortgage professionals review credit information and income statements to determine if a loan is acceptable for an organization.
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Learn to ask questions. Working with clients to secure a mortgage involves asking the right questions after carefully listening to the customer’s lending needs. Learning to clarify the specifics of a loan request can help you and a customer navigate the application process successfully.
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How To Be A Mortgage Broker Plus Advantages Of A Career In The Mortgage World
Of course, snagging a comfy salary isnt everything . Is brokering loans rewarding or even fun?
Shayna Rabaiotti, an Arizona mortgage loan officer with Guardian Mortgage, has this to say about it: Its such an amazing feeling when I get to see my clients reactions after they get their keys to their new home.
Rabaiotti also notes that mortgage loan brokering is a good transition career.
After being in the customer service and sales industry for over 15 years, I find that I really enjoy helping people, which is why I was so drawn to this, she says.
Here are the basic steps you need to take to become a licensed broker:
Are You Acquainted With Automated Loan Processing Tools
The interviewer may test your knowledge of IT skills related to finance by asking this question. Mention the software you are acquainted with or the ones you have used in your previous jobs to show that you are capable of working with them.
Sample Answer
Since I have been working in the banking sector, and have a sound knowledge of finance, I have also learnt to work with finance-related software. I am familiar with automated loan processing tools like Desktop Underwriter, Salesforce and Loan Prospector. Moreover, I am also deft in using other software like Microsoft Excel.
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The Pros And Cons Of Starting A Career In Mortgage Lending
Theres never a bad time to move into the mortgage industry. As it turns out, the mortgage industry is fertile ground for those looking to shift into something thats new, lucrative, and actually makes a difference in other peoples lives. With that said, switching careers is never easy, but nothing in life thats worth doing ever is. This guide will help give you an idea of whether or not joining the mortgage industry is a good direction for you.
Follow The Smart People With The Good Ideas
Back in 2008, I joined a then unknown company called Spotify. At the time I had an offer from Google and a couple of other places. Obviously all my friends and family thought I was really dumb. Google is the coolest place in the world to work at! Ball pits!! But what made me join Spotify was I loved their beta product all the smart people from school that I looked up to had joined. So I thought, whatever, I’ll try it. I want to work with these guys.
I ended up staying there for about six years during which this obscure company that started in Stockholm transformed the music industry. Anyway, the lesson I learned was: go work for the smartest people you can find, and with a business idea you believe in. Everything else is secondary. Even the business idea is probably secondary, since smart people often end up making the business work .
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Sometimes It’s Good To Be A Bit Contrarian
One theory I have is that you should take advantage of talent arbitrage. Smart people over the last 20 years have all moved into startups and hedge funds, but indirectly that also means that all other industries will be disproportionally underserved by talent. There is a separate bigger altruistic/utilitarian argument to be made that smart people increasingly went into industries with small or no externalities no bigger benefit to other people. I don’t think high frequency trading or hyper-optimizing ad CTR is necessarily terrible in itself, but what’s bad is it’s the opportunity cost of sucking smart people away from jobs with larger externalities.
But the silver lining is I think this will change as the opportunities pop up for smart people to go into these underdeveloped fields like education, healthcare, and banking. Being the smartest team in a mediocre industry means you have a huge competitive advantage. Interestingly I see a lot of action in New York targeting these industries, but I don’t know if it’s a larger trend .
Why Should We Hire You Instead Of Another Candidate
Interviewers ask this question to determine what sets you apart from other candidates who may have a similar background. Be honest, speak from experience and highlight a skill you have that other loan officers may not. Consider what skills you have that your previous co-workers seemed to struggle with to help you identify your own strengths. Some areas you could focus on include negotiating, decision making and analyzing information.
Example:”In my most recent role, I worked with other loan officers who had a hard time meeting deadlines. My strong time management and organization skills help me ensure I submitted loans for processing on time. Throughout my career as a loan officer, I have never missed a deadline. This is one skill that sets me apart from many other loan officers, and I believe it can help me find success in this role.”
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Describe Briefly About Your Experience
This question is mostly asked in all job interviews. The recruiters want to know whether you are a fresher or an experienced candidate. So, mention your years of experience and the companies you have worked in, or the roles you have handled.
Sample Answer
From my high school and college years, I was dedicated to a career in banking and finance. I took up commerce in school and graduated with a degree in economics and a diploma in banking and finance. I started working in the banking and finance sector, and have handled responsibilities for 2 years in customer service and 3 years in sales. Besides, I have always done a course in operational computer skills, being proficient in Microsoft Office. The exposure and training have developed my strong interpersonal skills and ability to deal with clients.
Describe Your Daily Routine As A Loan Officer
The recruiter asks this question to see how well organized you are, and how you schedule your daily activities at the workplace. Chalk out a plan as your answer, scheduling your daily responsibilities as a loan officer.
Sample Answer
As a loan officer, my first work for the day would be forming a schedule and sticking to it for optimum time management. I would sort out the key accounts and handle them first to pay more attention to them. Before processing each loan, I shall look into the weak areas, if any, proofread for documentation errors and typing mistakes. I must also double-check and organize everything before submitting it to the underwriter.
A certain part of the work hours would also be allotted to meeting new clients, reviewing applications and getting them verified by credit analysts.
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Choosing A Career In Mortgage
It is often those career paths that give back to the community or enrich the lives of others that are the most rewarding. A career in mortgage is one industry that fits the bill.
People in these positions work on a regular basis to help individuals secure foundations for their families or commercial properties for new business opportunities.
To get a leg up in your career, you might look for jobs with better known companies or those that offer more opportunities for specialization. The larger the company, the harder it is to be noticed and move ahead but this can also provide a greater sense of security as these large firms typically have solid financial backing.
On the other hand, smaller firms may not have as much money available but they tend to give their employees more responsibility and room to grow.
Grit And Determination For Digging Into Customer Records
Digging through data is a time-consuming process, but as a credit investigator its a necessary part of the job. Give employers the correct impression that you can be thorough by showcasing your grit and determination. By showing your ability to dig deep into financial data, employers can feel confident that you will leave no stone left unturned, ensuring that every approved borrower is likely to pay back their loan.
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