How to Become a Mortgage Broker

A mortgage broker is a person who works as an intermediary between an individual or firm wishing to obtain a mortgage to buy property. The broker takes the information from the applicant and then searches for banks and other financial institutions that are willing to approve the mortgage application. This means that anyone applying for a mortgage in one state could actually obtain the mortgage from a bank in another state. By using the services of a broker, one can obtain different kinds of mortgages at varying interest rates. Some of these brokers specialize in residential mortgages, others specialize in just commercial mortgages, and there are some who take all kinds of mortgage applications. This position is similar in a way to that of a loans officer in a bank, but in the broker position you do not work for just one financial institution.

To become a mortgage broker in the United States, you must be licensed by the state in which you work. Each state has its own set of regulations for licensing, so you do need to make sure you become familiar with these regulations in order to meet the requirements. The following is a sample of the various requirements for licensing in each of the fifty states.

• Alabama – anyone operating as a mortgage broker must have a license and can deal in both first and second mortgages.
  
  
  
  
• Arizona – you must have a physical office and pass a state exam to obtain the license.
  
  
• Arkansas – you will only need a licensed if you are working on your own.
  
  
• California – there are two approaches you can take to obtaining a license in this state – one dealing with real estate and the other dealing with finance lending.
  
  
• Connecticut – you will need a license for first mortgages and another for second mortgages when you practice in this state.

The licensing regulations are more complicates in some states than they are in others. There are also states that do not require you to hold a license at all, such as Alaska and Colorado. Brokers with experience dealing with mortgages can gain national certification through the National Association of Mortgage Brokers. There are certifications for those with three and five years of experience, but there is also a certification for the entry-level of this profession. You are responsible for finding the criteria needed for each certificate and for studying on your own before you write the exam. This institution does not have any specific coursework that you must complete.

There is a difference between the job of mortgage broker and loans officer, even though the work of both positions is similar. As a mortgage broker, you are personally responsible for the ethics of handling the process of gaining approval for the loan. A loans officer has the umbrella of the financial institution to protect him/her in such a situation. Working as a broker you can make more money than by working with a specific institution and the fees you get paid depend on the amount of each loan. The borrower pays these fees, which are often added to the original loan amount so that there is no money out of pocket.