Would you like to work in the real estate industry but rather not be an agent? Or would you like to offer mortgage loan services in addition to real estate services to your clients? Become a mortgage broker and be an essential part of the homeownership process. What is a mortgage broker, and what do they do? Keep reading to find the answers to these important questions—and the average salary of a mortgage broker in the U.S.
What Does a Mortgage Broker Do?
A mortgage broker acts as an intermediary between borrowers and lenders. They help clients find and secure mortgage loans by assessing their financial situations, comparing loan options, and negotiating terms with lenders. Brokers streamline the application process, offer advice on loan products, and ensure compliance with legal requirements, ultimately facilitating the best possible mortgage deal for their clients.
Mortgage brokers work with multiple lenders to find the best mortgage for their clients. A mortgage loan officer, on the other hand, works for a single lender, such as a bank or credit union, and is limited to offering their employer’s mortgage products.
As of 2024, dual licensing as a real estate agent and a mortgage loan officer (MLO) is allowed in 45 states and Washington, D.C., broadening opportunities for real estate professionals to diversify their services. Are you already a real estate agent in your state? Consider earning your license to become a mortgage broker as well!
Related Article: Homebuyer’s Home Guide: 7 Types of Mortgage Home Loans
Steps to Become a Mortgage Broker in the United States
Whether you want to work as a mortgage broker or offer mortgage brokerage services to your real estate clients, here are the necessary steps to enter the field.
Step 1. Obtain the necessary education.
Obtain a high school diploma or equivalent. To gain foundational knowledge, consider pursuing higher education in finance, business, or economics. While a college degree is not required to become a mortgage broker, you need to be licensed.
To become licensed, you must complete pre-licensing education from an approved school. This typically involves at least 20 hours of coursework covering federal laws, ethics, and lending standards. Consider taking pre-licensing courses with OnCourse Learning.
Step 2: Pass the National Mortgage Licensing System (NMLS) Exam.
The next step to becoming a mortgage broker is passing the NMLS Exam, also known as the SAFE MLO Test. The 120-question test covers mortgage-related laws and ethics and costs $110.
Step 3: Obtain your NMLS license.
Once you’ve passed the national and any applicable state-required tests, you can apply for your mortgage loan originator state license on the NMLS website. This license has fees associated with it. You must also pay for a criminal background check and credit report.
Average Salary for a Mortgage Broker in the United States
According to Indeed, the average base salary for a mortgage broker in the U.S. is $171,185, plus many mortgage brokers earn commissions.
Dual Licensing: Offering Real Estate and Mortgage Broker Services
Dual licensing, combining real estate and mortgage broker services, enhances your value to clients by providing a seamless, comprehensive home-buying experience. It simplifies transactions, streamlines communication, and can save clients time and money, positioning you as a versatile, one-stop professional in the competitive real estate market.
Are you already licensed as a real estate agent in your state? Consider working with OnCourse Learning to earn your mortgage broker license and Colibri Real Estate School for all your real estate pre-licensing, continuing education, and broker licensing needs.
Key Takeaways
- To become a mortgage broker, you must have a high school diploma and complete at least 20 hours of pre-licensing education covering federal laws, ethics, and lending standards.
- Pass the SAFE Mortgage Loan Originator Test (NMLS Exam), which includes a national and state component.
- You can apply for a state mortgage broker license through the NMLS and pay fees for the application, background check, and credit report.
- Having both your real estate and mortgage broker licenses enhances your service offerings by combining real estate and mortgage brokerage, providing clients with a seamless, comprehensive experience.
