When you choose a career in finance and want to become a mortgage broker, you need a basic understanding of this career. This career can prove very rewarding; not only helping your clients achieve their home goals, but the income that accompanies this type of career can be very high. If this is something that is appealing to you, you likely have questions as to how best to go about doing this. Here is the step-by-step guide to becoming a mortgage broker.
Here is how you should start with a mortgage broker career:
Step 1: Get the required education
The first step to follow before finishing your high school education or getting a degree certificate is to do so.
Certain employers do not mind if you are college-educated, and it will open up more opportunities. It gives you at least an elementary knowledge of finance and the rules that go with it if you get your associate's or bachelor's in finance, business administration or accounting.
Step 2: Complete Pre-Licensing Training
Last, one has to pass pre-licensing education through the Nationwide Mortgage Licensing System and Registry.
The latter is usually completed in 20 hours in a course that offers fundamental topics, including federal and state mortgage laws, professional ethics, and finance.
This education is important as it offers information that would help him to pass the licensing examination as a mortgage broker and, in addition offers the basic information that you would require as a mortgage broker.
Step 3: Pass the NMLS Licensing Exam
After completing your pre-licensing education, you will take the NMLS licensing exam. You will pass the exam if you score at least 75% on both the state and federal parts of the exam.
The exam will assess your knowledge of mortgage laws and practices, so preparation is important.
Step 4: Register Your Business
Once you have passed the exam, you will have to register your mortgage brokerage as a legal business entity. You will have to follow the state's guidelines on business registration.
This may involve choosing a business structure, such as an LLC or corporation, and securing any permits or licenses required by your state.
Step 5: Apply for Your Mortgage Broker License
Once you have registered your business, the next step is to apply for your mortgage broker license. This process mostly involves sending in your licensing application and all the relevant fees, if any, this is through.
Further, you may require a mortgage broker bond, whereby the holder is shielded in case you offend the law in your acting capacity as a broker.
Step 6: Gain Experience
It would also be highly possible to venture directly into building a brokerage yourself. However, the majority of newly licensed brokers begin by trading for established brokerages to earn valuable experience.
Through this action, you shall understand the firm and subsequently develop a long chain of connected relationships that prove valuable as time passes.
Step 7: Continue Education
The mortgage industry is constantly changing, and thus, continuous education is the key to success.
Many states require continuing education courses to maintain your license.
Keeping up with the latest trends and regulations in the industry will not only keep you compliant but also increase your credibility with clients.
Fulfil Your Career With This Step-by-Step Guide!
Becoming a mortgage broker requires some steps, starting from getting the necessary education to gaining practical experience in the field. This guide on how to become a mortgage broker will set you up for success in this dynamic profession. With dedication and hard work, you will be well on your way to helping clients achieve their homeownership dreams while building a fulfilling career for yourself.
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