Are you wondering what the job of a mortgage broker consists of? Working in this field requires extensive knowledge about the process of financing real estate as well as customer service and sales skills.
Understanding the Job of a Mortgage Broker
Mortgage brokers work with clients who are interested in borrowing money to purchase real estate or who are seeking opportunities to refinance property that they already own. Brokers function as intermediaries between lenders and consumers who are seeking real estate financing.
Marketing is an important part of what the job of a mortgage broker consists of. Because brokers work on commission, building a clientele is an essential component of success in this business. Successful brokers spend a good bit of time marketing their services directly to prospective home buyers and building relationships with Realtors and home builders who may be in a position to refer clients to them.
Some brokers offer free credit classes and home buyers seminars as a community service and as a means of building relationships with individuals who are looking to purchase real estate. Additionally, many brokers become involved in a variety of business networking groups, like the Chamber of Commerce and Business Network International, and professional associations such as the Board of Realtors and Home Builders Association, as a way of build their businesses. Successful brokers also keep in touch with past clients, recognizing that satisfied customers are often the best resource for referring new business and that people often seek multiple mortgage loans throughout their lifetimes.
Providing Information to Consumers
Because brokers are able to represent multiple lenders, they are able to work with clients to find the best financing option for their particular situation. When meeting with an individual who is interested in taking out a mortgage loan, mortgage brokers are responsible for providing information about the various types of loan programs that are available based on relevant factors including, but not limited to:
- The individuals credit history
- Down payment availability
- Property location and value
Brokers also educate customers about what to expect throughout the loan process, including details about guidelines for loan programs, interest rates, and the fees and expenses associated with taking out a mortgage loan. It's important to provide prospective customers with all of the facts necessary so they can make a wise decision regarding the best real estate financing option to pursue.
Once a client has decided to apply for a mortgage loan, the broker will work closely with the individuals to secure all documentation necessary to complete the financing process. This starts with the process of getting the client started with completing the initial mortgage application to securing information needed to prepare for closing through the actual closing process. Brokers provide their clients with a list of the information that will be needed in order for the lender to give preliminary approval for the loan, then often work closely with the real estate and closing agents to ensure that the survey, appraisal, termite inspection, title search, and other important details are handled in a timely manner.
Becoming a Mortgage Broker
The requirements for working as a mortgage broker vary from one state to another. Most states required individuals who work in this occupation to become licensed and to engage in continuing education activities in order to remain licensed. Occupational licensure and training requirements for brokers are typically established by the state agency that regulates banking. The rules for working as a mortgage broker are typically different than those that apply to individuals who work as loan officers in banks. To find details specific to the state where you plan to work, visit the state specific career information available on the Mortgage News Daily website.
Going Beyond the Basic Requirements
Many mortgage brokers seek professional certification beyond the minimum licensure requirements mandated by the states where they work through the National Association of Mortgage Brokers. Details about what is involved in advanced certification can be found at NAMB.org.