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A Loan Originator Career
Begin a career in mortgage lending
For help obtaining a mortgage or refinancing, consumers often seek out a mortgage professional. They look for someone who is trustworthy and who can effectively secure the best interest rate and terms available.
A loan originator helps to arrange funding and negotiates contracts with actual lenders, but does not fund the loans directly. Loan originators also gather pertinent client information to ensure informed decision-making regarding loan quality and repayment probability.
Find Out if a Career in Mortgage Lending is Right for You
Changing careers can be an emotional rollercoaster – Do I have what it takes? Am I too old? Am I too young? What is it going to cost me?
Experts agree that gaining as much knowledge as you can before taking the plunge will better prepare you to succeed in the long run. Be sure to follow our blog for great articles involving the mortgage industry!
Characteristics of a Successful Loan Originator's Career
Those who excel in the industry tend to be:
A Day in the Life of a Loan Originator
Loan originators guide clients through the loan application process. It begins with a formal meeting or telephone call, during which time basic information is shared about the loan's purpose and available options and credit terms.
Loan originators answer questions about the process and assist clients with filling out the application, on which the lender bases the decision to grant the loan and to define the terms. As a loan originator, you will advise prospective buyers to bring information to verify their income and outstanding debts. You will also describe the property being mortgaged and detail the specific loan amount and repayment terms. Once complete, you will verify the information contained in the application and analyze it to determine your customer's creditworthiness. This process involves electronically accessing the client's financial history and credit score.
At closing, you will meet with the buyer and seller to make the legal exchange of the property and funds. You will likely need to explain closing costs, which usually include discount points, fees, and other items.
Most loan originators work a standard 40-hour week, but many work longer, depending on the number of clients and level of demand. You can work especially long hours because you are free to take on as many clients as you choose. When interest rates are low, a surge in loan applications is triggered, and business can be quite brisk.
In most instances, loan originators act as salespeople. They prospect and develop relationships with commercial and residential real estate agencies for client referrals. Recommendations to homebuyers from real estate agents are critical to success.
Working in the mortgage industry typically involves some travel. You will frequently rely on laptops and cell phones to keep in contact with your office and clients. Loan originators often work out of their home or car, visiting offices or homes of clients while completing loan applications.
Compensation varies, but most are paid a commission based on the value of loans they originate. In this way, commissions are used as motivation to bring in more loans. Some organizations pay only salaries, while others pay a salary plus commission or bonus.
Unlimited Earning Potential
When the economy is on the upswing or when interest rates decline dramatically, a surge in real estate sales and mortgage refinancing often occurs. Plus, the hiring of loan originators rapidly increases.
The opportunity to increase your earnings peaks when demand is high and you are willing to put in the extra effort. Six-figure incomes are common in this industry. It's simple – the harder you work, the more you make. The sky's the limit!