Learning how to become a mortgage loan officer in Michigan is crucial for those who want to see if this profession matches their career goals. Read on for more
Becoming a mortgage loan officer in Michigan can be a rewarding profession if you are committed to succeed. Aside from the additional earnings that you can get, it can also provide flexibility and professional growth. You can also gain personal satisfaction from working as a mortgage loan officer since you will be able to help people achieve their dream of homeownership.
In this article, Mortgage Professional America will talk about how to become a mortgage loan officer in Michigan. We will uncover the steps on how to become a mortgage loan officer in Michigan and answer how much you can earn when you become one. Want to learn about some essentials skills to have and develop as a mortgage loan officer in Michigan? Keep reading to know more.
Steps on how to become a mortgage loan officer in Michigan
To become a mortgage loan officer in Michigan, you need to complete six steps. This involves connecting with various institutions that oversee pre-licensure education, exams, and other requirements imposed by Michigan. Most of these qualifications are also needed by would-be mortgage loan officers in other US states.
Below are the steps on how to become a mortgage loan officer in Michigan:
- request an NMLS account
- complete NMLS-approved pre-licensure education
- pass the SAFE mortgage loan officer test
- allow the state and FBI to conduct criminal background checks
- finish NMLS application
- get employer sponsorship
Here is an in-depth discussion of the six steps on how to become a mortgage loan officer in Michigan:
1. Request an NMLS account
The initial step to becoming a mortgage loan officer in Michigan is to request an account with the Nationwide Multistate Licensing System and Registry (NMLS) on the NMLS Resource Center website. The NMLS is a local database where all mortgage loan officers in Michigan and other states must register.
Once you create your account, expect to get a personal number from the NMLS. You will use this for the entire duration of your career as a mortgage loan officer.
2. Complete NMLS-approved pre-licensure education
After creating your NMLS account, you must go through 20 hours of coursework in the form of a pre-licensure education program approved by the NMLS. In Michigan, you need to finish these courses:
- 3 hours of ethics
- 3 hours of federal law
- 10 hours of general electives
- 2 hours of Michigan-specific course
- 2 hours of non-traditional mortgage lending
3. Pass Secure and Fair Enforcement Act (SAFE) mortgage loan officer test
The third requirement is to complete the Secure and Fair Enforcement Act (SAFE) Mortgage Loan Officer Test. This exam will review your knowledge of the pre-licensure courses. You must get 75% correct answers on this test to pass.
4. Allow the state and FBI to conduct criminal background checks
After passing the SAFE test, you must give your consent to allow the state and the Federal Bureau of Investigation (FBI) to run criminal background checks on your profile. This is necessary for them to analyze your profile and see if you have been involved in any criminal activity.
5. Finish NMLS application
Once the state and FBI criminal background checks cleared your name, you can now finish the NMLS application. This is a necessary step to combine all your important data, submitted requirements, and other details in a single location. After this, you can start looking for the right mortgage lender that will sponsor you.
6. Get employer sponsorship
Your Michigan mortgage loan officer license will stay in pending status until your employer sponsorship is verified by the NMLS. This verification is done through the NMLS portal. Once your potential employer (i.e. bank or mortgage lender) gets the verification request, they can approve your sponsorship. After receiving their approval, you will be officially licensed to work as a mortgage loan officer in Michigan.
If you are not residing in this state, you can still become a mortgage loan officer with these ten steps. For more specific locations, take a look at our other guides:
- How to become a mortgage loan officer in California
- How to become a mortgage loan officer in Florida
- How to become a mortgage loan officer in Georgia
- How to become a mortgage loan officer in Texas
How much do mortgage loan officers make in Michigan?
As for the monetary rewards, mortgage loan officers in Michigan can earn up to $178,540 annually. You also have the benefit of getting an average commission of up to $35,500 per year, according to Indeed.
Becoming a mortgage loan officer in Michigan is suitable for those who want to work under a home loan provider or commercial bank. Having an employer-lender can provide an extra layer of security, especially if you are working for the ten biggest banks in the US. If this sounds a lot like you, give this profession a go.
On the other hand, for those who have a desire to carve their own path as a professional, working as a mortgage broker might be the better option. This career can give one a sense of independence because you don’t need to be employed by a mortgage provider. You can work on your own and get clients to build your brand.
Curious to know more about how mortgage loan officers differ from mortgage brokers? Watch this video:
For those who might be interested in taking the alternative route, here's how to become a mortgage broker in the country.
What skills do you need as a mortgage loan officer in Michigan?
To thrive as a mortgage loan officer in Michigan, you need to develop a set of skills. These will come in handy even before you start looking for prospects. Here are some essential skills for mortgage loan officers who want to make it to the top:
- financial wisdom
- negotiation skills
- interpersonal skills
- market awareness
Let’s look more closely at each essential skill to have and develop as a mortgage loan officer in Michigan:
1. Financial wisdom
Mortgage loan officers in Michigan must have financial wisdom especially when dealing with monetary figures related to mortgage transactions. Assessing interest rates is also an integral part of working as a mortgage loan officer. These rates will be one of the bases of your employer-lender with regard to the mortgage products that they will ask you to present to potential borrowers.
To help you learn about the US mortgage market’s everchanging figures, here is everything you need to know about the average mortgage rates in the country.
2. Negotiation skills
Mortgage loan officers in Michigan must be good at negotiating property loan terms. This can involve searching for the lowest possible interest rates from your employer-lender while thinking about your clients’ interest. The same is true for negotiating the repayment schedules.
Having good negotiation skills can lead to better deals for your clients as well as approved applications from your employer-lender. As such, you will earn both parties’ trust and your credibility as a mortgage loan officer will increase.
3. Interpersonal skills
Creating a strong connection with your employer-lender, your clients, and other professionals in the mortgage sector is important. Relationships founded on integrity can result in referrals and repeat business. Improving your interpersonal skills is also critical when building a network of contacts in the mortgage industry.
Connecting with real estate agents and credit professionals can lead to valuable referrals as well.
4. Market awareness
Understanding property values and being aware of economic conditions in the country helps mortgage loan officers in Michigan advise clients more effectively. Staying updated is always helpful in this line of work when mortgage rates reflect changes and when the US inflation rate is unstable.
Managing clients’ expectations as a mortgage loan officer
Mortgage loan officers in Michigan should learn how to manage the client’s expectations and handle tough conversations. After all, borrowing a large sum of money is a serious matter. Not everyone might be happy with the options that you will present from your employer-lender.
You can make it less intimidating for your clients by sticking to the facts and laying down all the critical information that they need to know. It will also help if you can speak in a professional, calm, and reassuring tone.
Becoming a successful mortgage loan officer in Michigan
There is no shortcut to becoming successful in the mortgage industry. You have to put in the work and be passionate about what you are doing. You must also keep pressing on and be able to take criticisms openly. Humility can go a long way in creating long-lasting relationships with your clients, employer-lenders, and other mortgage professionals.
As you move forward with your career as a mortgage loan officer, approach the advice and tips from others with caution. Try learning the lessons from both your setbacks and wins. Improving these strategies and applying them can push you closer to becoming a successful mortgage loan officer in Michigan.
Do you agree that becoming a mortgage loan officer can be a fulfilling career? Share your thoughts in the comments section below.
