To be successful as a mortgage broker in the United States, you must do the hard work and keep learning. Here are seven ways to succeed in this profession
A career as a mortgage broker in the United States can be as challenging as it is rewarding. Success as a mortgage broker is based on a ton of things like strict legal compliance and good relationships with clients. It is also beneficial to foster partnerships with trusted financial institutions.
Being committed to one’s continuous improvement is also key to becoming successful in this career. Each of these factors is important if you want to be ahead of the competition. To help you reach your full potential, Mortgage Professional America has listed seven ways on how to become a successful mortgage broker. We will also answer why one should choose this profession and its advantages.
How to become a successful mortgage broker in the US
If you want to be a successful mortgage broker in the US, the journey is not going to be easy. But that doesn’t mean it's not achievable. With dedication and perseverance, new and hopeful brokers can thrive in the industry. Building trust between you and your clients will also give you the upper hand, especially in the long run.
There are many tips in advancing your career as a broker. We chose seven ways that are guaranteed to help you succeed:
- observe a complete legal compliance
- always be prepared to offer multiple options
- be transparent about broker fees and closing costs
- continue attending workshops and courses
- show proof of your success
- market yourself and nurture your network
- build resilience from rejection
Let’s explore each of them below:
1. Observe complete legal compliance
As a mortgage broker, you are the financial link between home buyers and potential lenders like banks and wholesale mortgage lenders. In turn, you must comply with federal rules and your state’s licensing requirements.
For example, you need to pass a written qualifying exam and submit fingerprints for a background investigation under the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE).
Getting a mortgage broker license
No matter how good a mortgage broker becomes, it is futile if they do not have a license. Aspiring brokers should obtain a license before they work in any state. Not only does it provide confidence for their prospective clients, but it’s also a legal necessity.
To get a US mortgage broker license, follow these six steps:
- get your high school diploma or GED
- take pre-licensing training
- pass the NMLS exam
- establish or register your mortgage brokerage
- meet your state’s mortgage broker license requirements
- maintain license, undergo more brokerage training
Find out more about getting a license and how to become a mortgage broker in this article.
There are also other requirements to complete legal compliance, such as:
- mortgage surety bond agreement
- proof of continuing education
Visit the National Mortgage Licensing System (NMLS) resource center for reference.
2. Always be prepared to offer multiple options
Clients have different housing needs and specific financial situations. To become a successful mortgage broker, you should be able to:
- answer their questions
- explain the different types of home loans
- provide options depending on their incomes and debts
Ask your clients if they want to apply for an FHA loan or VA loan. You can also recommend that they check if they qualify for government assistance. In any case, you must do your research and qualify potential customers for multiple mortgage options.
Aside from FHA loans and VA loans, there are other loans available for home buyers. Explore these options in the 7 most popular types of mortgage loans for home buyers.
Run the numbers and try matching clients to the best products based on their credit scores and housing requirements. Do not push for a particular option but provide thorough guidance instead. Allow them to make the final decision.
3. Be transparent about broker fees and closing costs
Learn to manage the client’s expectations and handle tough conversations. After all, borrowing a huge sum of money can be terrifying and not everyone will be happy with the options you provide.
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 helps to speak in a professional, calm, and reassuring tone.
Most importantly, you should remember to completely disclose any fees that can impact your buyer. For example, talk in advance about closing costs, how much they are, and who pays. Transparency is essential to building a positive, lasting relationship with clients.
Provide a complete breakdown of the charges due to the closing of a real estate transaction and fees related to the following:
- loan origination
- appraisal and survey
- property tax
- title insurance
4. Continue attending workshops and courses
Mortgage brokers must complete at least eight hours of continuing education within the same year of receiving an approved license status. These hours must include courses in an elective that the state may require and other subjects like:
- ethics
- federal law
- non-traditional mortgage lending
Also, according to the SAFE Act, you need to satisfy mandatory federal education requirements for license renewal. You can check the NMLS resource center and state-specific required education charts for more details.
You should make time to attend industry workshops and optional courses. These will help you stay updated on the best business practices, newest trends, and compliance standards.
5. Show proof of your success
Easing the minds of your overwhelmed clients is an essential part of your job as a mortgage broker. Build their confidence in you by providing testimonials from previous customers and letting them know about your qualifications.
Display your awards and certifications in your office. You can also use your website or LinkedIn profile for mortgage lead generation and to show your achievements. Gather written endorsements from your connections, especially previous clients, and display them on your page.
6. Market yourself and nurture your network
Remembering personal details about your clients can go a long way. Making them feel that you care will put them more at ease. And do not forget your previous customers as well. If you helped them, they would likely come to you when it is time to renew their mortgage terms.
Establishing connections with financial institutions and real estate brokers is just as important. Go online, polish your profile, and reach out to prospective contacts.
To be successful, “brokers need to be able to market themselves and work as self-starters,” said Kimber White, former president of the National Association of Mortgage Brokers (NAMB).
“It is one thing to do big volume on refis and leads generated by your company’s marketing department, it’s another to develop a wide community network and the means of generating leads on your own.”
7. Build resilience from rejection
Resilience and passion are underrated qualities of successful mortgage brokers. You will experience rejection and anxiety many times, especially if you are new to the industry. Keeping a professional mindset and not taking rejections personally are vital to the job.
“On a daily basis, you'll face rejection from potential clients, the banks, and even solicitors and real estate agents as you try to line up settlement,” said Otto Dargan, founder of Home Loan Experts in Australia. “Sometimes it's simply a matter of accepting your defeats and moving on.”
For more on how to become a successful mortgage broker, watch this video:
Looking for role models in the mortgage industry? Visit our Best in Mortgage page for a list of the most successful mortgage brokers in the US and elsewhere.
Is it hard to start as a mortgage broker?
Just like any other profession, starting as a mortgage broker can be difficult. This career is ideal for those who want to be independent and have a desire to carve their own path in life. One must ask themselves if they would remain in the industry even when hardships come.
For mortgage brokers who have established themselves in the business, there are many advantages waiting for them. Some examples are:
- good compensation in terms of commissions
- building a network with big banks and mortgage lenders
- lifelong learning and intellectual stimulation
Do mortgage brokers need to be good at math?
Mortgage brokers don’t have to be good at math. If a broker is not good in this area, it does not mean that they are at a disadvantage. Mastery in numbers can prove to be helpful but it does not define whether a broker will flourish or not.
What is the success rate of a mortgage broker?
There are varying reports on the success rates of mortgage brokers. These rates are calculated based on the commission fees that brokers charge their clients. Ultimately, it depends on many considerations such as skills, perseverance, and experience.
Becoming a successful mortgage broker
Overall, there is no shortcut to becoming successful in the mortgage brokerage industry. You must put in the work and be passionate about what you are doing. You should also take criticisms openly. Humility can go a long way in creating long-lasting relationships with your clients, lenders, and real estate agents.
As you move forward with your career, take everything with a grain of salt. Learn from both your achievements and failures. Combining these and applying them can push you closer to becoming a successful mortgage broker in the country.
Did you find these tips on how to become a successful mortgage broker helpful? Tell us what you think in the comment section below.
