A mortgage broker is a middleman between the home buyer and the mortgage lender. They work directly with the consumer and the bank to help borrowers in qualifying for a home loan or a refinance. In essence, a mortgage broker's job is to search for an appropriate loan with the desired features at a reasonable rate. Every state requires that mortgage broker companies be licensed. At least one employee or principal qualify as a registered or designated mortgage broker. One needs to go through the process of taking continuing education classes, pass the tests, be fingerprinted, pay your application fees, and conclusively, be granted the privilege of helping your clients to obtain their needed mortgage financing. To become a licensed mortgage broker, one needs to follow these steps such as –
Steps 1 – One needs to get a high school diploma or GED. All states require that mortgage brokers need to have at least a high school-equivalent level education to get a license.
Step 2 – One need to apply for entry-level positions at licensed mortgage brokers in your area. One needs to have at least two years of professional experience to become a licensed, registered, or designated mortgage broker.
Step 3 – Need to complete the application to become a registered or licensed mortgage broker after you have met the experience requirements. A mortgage broker licensing application is feasible through the financial institution regulatory agency in most states. One needs to take and pass the required exam to become a licensed or registered mortgage broker in your state.
Step 4 – One needs to complete the application for a mortgage broker business license when you are a registered mortgage broker. Most of the states require that mortgage broker companies require posting a surety bond of around $20,000 and require filing a business plan and organizational chart along with the application fee.
Why does one need to have a mortgage broker license?
One needs to have a mortgage broker license as this is a legal requirement to become a mortgage broker. Without this, you will be breaking the law, and therefore subject to fines or various other penalties, if you were discovered. Apart from this, the licensure process teaches you the most decisive information that you will need to know. For example, the pre-licensure course is one of the outstanding ways to ensure you thoroughly understand the state and federal regulations and laws regarding lending or selling of real estate property.