The pros and cons of being a mortgage broker are that it's easy to get into, there is potential to advance, and help others, but at the cost of a volatile market, finding leads and cold calling, and high burnout rates.
Working as a mortgage broker is a great job for someone who wants to hit the floor running, is highly motivated and good with people, and who is willing to do their research and stay up-to-date on market trends.
Each state does have its own requirements for becoming a mortgage broker. In most states, it is required to complete a 20-hour course and pass the Mortgage Loan Officer License exam. If you already have a bachelor's degree, then in many cases, you are exempt from having to take the Mortgage Loan Officer License exam.
Getting into mortgage broking can open the door to a variety of career paths and advancement opportunities. It is not uncommon, for example, to start as an Underwriter and later advance into a Mortgage Loan Officer position. The good thing about this industry is that there is always room for those willing to put in the extra mile.
A successful mortgage broker must also be a "people person." A majority of their day is spent helping clients through mortgage pre-qualification, pre-approval, and closing on loans. Not only does it require interacting with clients, but also spending time working with Underwriters, Mortgage Brokers, and other Mortgage Loan Officers. At the end of the day, helping a family to fulfill their dreams of homeownership is arguably the best part of the job.
The mortgage industry is a fast-paced, ever-changing business, as seen in recent years with the constant fluctuations in mortgage rates and housing prices. When rates are low, business is good, but when they start to creep higher, their income stream may suffer.
It takes a real "people-person" to keep new clients coming in and those existing still interested in the services, even when rates are high.
To accomplish this, mortgage brokers are expected to spend a considerable amount of time cold-calling and generating new leads. It's important to introduce yourself to your local real estate actions. Being able to network plays a big part in bringing in new clients.
This constant need to find new buyers can be exhausting, which is one reason there is a high burnout rate among mortgage brokers.
Another advantage of being a mortgage broker is the flexibility it offers. As a mortgage broker, you often have the ability to set your own hours and work from home. This can be especially beneficial for those with families or other commitments that require a flexible schedule. You're not tied to the typical 9-5 office hours, giving you more control over your work-life balance.
In addition, the earning potential in this field can be quite high. The more loans you close, the more commission you make. So if you're good at sales and are driven, this can be a lucrative career.
However, it's important to consider that this is a commission-based role. Your income may fluctuate based on the market condition and number of loans you close in any given period. This lack of financial stability can be stressful for some people.
The job can also be very demanding at times. During busy periods like peak buying seasons, you might find yourself working long hours to close deals and meet targets. On top of that, dealing with loan rejections can also be challenging, especially when they negatively impact your commission.
