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How to Become a Mortgage Broker and Thrive

by David B. Coulter on Jun 23, 2020, 11:21 AM

How to Become a Mortgage Broker and Thrive

Learning how to become a mortgage broker takes time, grit and a willingness to try new things. From developing your marketing skills to forging strong relationships with business partners, the path to success is far from linear. Successful mortgage brokers must be willing to evolve to meet fluctuations in the market and take advantage of innovative tools as these emerge. If the mortgage business sounds like your calling, here is what you should know about the business and the tools you will need to thrive.

What Does a Mortgage Broker Do?

As a mortgage broker, your job is to act as an intermediary between the borrower and the lender. Part of this job is being able to crunch the numbers to figure out what the borrower qualifies for financially and knowing which mortgage products and programs are most appropriate for them. Since mortgage brokers operate independently and don’t work for banks, you must be licensed.

You make money by charging mortgage broker fees for your services, which is a small percentage of the loan amount; generally between 1% and 2%. If you have a knack for numbers, strong attention to detail and a passion for working with people, being a mortgage broker may be the right calling for you.

How to Become a Mortgage Broker 

Before you obtain your mortgage license, you must take a pre-licensure program, a roughly 20-hour class that covers relevant federal and state laws and financial regulations for mortgages, loan officer ethics, loan origination and more. These classes, along with the official licensure test, are administered by the National Mortgage Licensure System (NMLS). Once you complete the class, you will take the NMLS test, which includes a national and state portion. If you pass the test, you are on your way to brokering mortgages.

Tips and Tools for Succeeding as a Mortgage Broker 

While the door to opportunity opens as soon as you obtain your mortgage broker license, it will only remain open if you stay on top of your game. Here are some important factors to consider and tools to try for building a lucrative mortgage broker business in the future.   

Forge Relationships with Business Partners 

A crucial component to becoming a successful mortgage broker is working on your networking skills. Creating and maintaining strong relationships with real estate agents and lenders can be hugely rewarding, because you all have the power to feed each other’s business. You might also forge relationships with financial advisors and accountants, who also work with potential homebuyers.

Market Yourself 

While you can count on your business partners to provide a steady stream of clients, you should also work tirelessly to attract business to yourself with compelling marketing strategies. From social media and content marketing to YouTube videos and podcasts, there are a variety of ways to promote your mortgage business in the digital realms and beyond. Traditional print ads aren’t a bad idea, either, but you should also be knowledgeable about how to beat your competition online. After all, EllieMae reported that 92 percent of borrowers do online research before contacting a lender this past year.

Since the mortgage business is essentially a people business, you must be willing to meet face-to-face with potential borrowers and business partners alike. Show up at industry events, run homebuyer seminars and be an active citizen in your community.

Use Innovative Tools Like ScoreMaster 

With a tool like ScoreMaster, mortgage brokers can help their clients save money while earning their trust. By providing a clear course of action to work toward a better credit score, the gamified system helps borrowers qualify for better-quality loans with lower interest rates. Mortgage brokers can offer ScoreMaster as a free perk to clients and within a minute, those clients can see how many more credit score points are achievable during your loan process. This leads to more qualifications, larger loans and ultimately more revenue. 

Keep Learning 

Aside from required ongoing compliance training to stay on top of new federal rules, successful mortgage brokers should always keep learning and researching new ways to succeed. Industry workshops and trainings help you keep in touch with your peers, stay on top of the latest mortgage trends and improve your overall business strategies. Visit the National Association of Mortgage Brokers (NAMB) for a variety of educational opportunities.

A tool like ScoreMaster can help you learn more about how to find success as a mortgage broker.

*Legal Disclaimer – ScoreMaster is a patent-pending educational feature simulating credit utilization’s effect on credit scores via payments or spending. Your results may vary and are not guaranteed.

References:

  1. https://www.realtor.com/advice/finance/mortgage-brokers-paid/
  2. http://mortgage.nationwidelicensingsystem.org/Pages/default.aspx
  3. https://www.bankbound.com/blog/3-step-strategy-mortgage-marketing
  4. https://namb.org/