Sunday, 2 August 2020

How To Become A Mortgage Loan Officer For Beginners

Are you considering becoming a mortgage loan officer or mortgage loan originator? The opportunity is definitely a great one because you don't have to have any kind of advanced degree. No college, no master's degree, none of that. Anybody can test for the license and become a mortgage loan officer, it's really simple to do, though, that doesn't mean easy. I also love this opportunity because it doesn't matter your gender, doesn't matter your race, doesn't matter who you are, you can enter into a professional career where you're doing significant work for people, helping them get into a home, get into a lifetime goal, and dream in some respects. I also love it because it's for anybody who's willing to work hard, who likes to set goals, and push forward, and accomplish things. The mortgage loan officer role might be just for you. And then finally, I love it because the income opportunity is great, it's way beyond a typical hourly wage, and the opportunity and room for advancement is up to you, it's all based on the amount of hustle that you want to put into it.

I want to walk you through how to become a mortgage loan officer, step-by-step, as I said, it's simple, but it's not easy.

Step 1. Register To Take The NMLS SAFE Exam (the required licensing test

You need to register to take the nmls safe exam, which is the required licensing test to become a mortgage loan officer. Now, there are a few things about this you need to know, once you register, you're allowed no more than 90 days before you have to take your test. So you register one day the clock starts ticking, and within 90 days you have to had that test completed. As of 2020, only 59% of people passed the test the first time. That tells you something about how difficult the test is, it's when you really have to study for and be prepared for. And if you fail it, you have to wait 30 days to retake the test, and you have to pay the testing fee again. So my advice is that you study effectively so that you pass the test the first time.

Step 2. Find And Take A Required 20 Hour Pre-licensing Course

Understand, this is required, you have to take this 20-hour course which costs you right around $350 depending on the provider, and you have to do that in order to get your license. You don't have to do it in order to take the test, but you do have to do it to finally get licensed. But I suggest you register for that test, and then you go choose a course that fits. I have a course listing, provided by the nmls which is the government branch that oversees all this testing 

It's their list of all their approved course providers. I would suggest you sign up, and you get started with that course after you've registered to take your test. That way, you'll have that 90-day window ticking, you'll be able to study in the meantime, and bone up on everything you need to learn. My advice is to be careful when you choose this course because not all courses are created equal. 

Step 3. Submit To A Background Check

The nmls requires this for all mortgage loan officer candidates, so you can't get around this, it's going to include setting an appointment, going to get your fingerprints done, all that sort of stuff. As of 2020, the cost for that is $36.25, and you'll be able to set that up and pay for it through the nmls website. 

Step 4. Submit Your Personal History And Experience

A lot of people get confused by this one, this does not mean you have to have mortgage loan officer experience, it's not required that you've done this sort of work before. They're just wanting to see your work history and your experience. My advice is that you include this with step 3, and do them all at the same time

Step 5. Submit To Independent Credit Report & Administrative And Civil/Criminal Findings

You're going to do all this through the nmls website. You do not have to have perfect credit to become a mortgage loan officer. The things that they're worried about, and most concerned about are bankruptcies and abusive credit. So they're going to be looking at those things. If you have bad credit because of medical debt or some other thing, those things will be taken into consideration it's usually not a problem. Each state is going to be a little different so depending which state you're filing for a license in, there may be additional considerations on this. And again, do steps 3 4, and 5, all at the same time.

Step 6. (Not Really A Step)

If you have had any mortgage loan officer license in the past, and it's been revoked by any government jurisdiction, you're not going to be able to get a license most likely. There may be exceptions you'd have to check with the nmls to find out what those are, but just know that could be a hurdle for some people 

Step 7. (Not Really A Step)

You must not have been convicted of, or have pled guilty to a felony that involves fraud, dishonesty, breach of trust, or money laundering. That's because the mortgage loan industry is a very important, and professional industry. You're going to be dealing with people's financial information, social security numbers, credit reports, all kinds of things. They want to make sure people who are serving people in that capacity are honest. and trustworthy. So that's why this requirement is in there.


Becoming a loan officer is a great opportunity as I talked about at the beginning of this article, you have an opportunity to sit across the table from real people, everyday people, and help them figure out how to get into the home of their dreams, or starter home or something that will help them start to build investments for the future. And it's a great way to build a life and a career for yourself as well

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