Becoming a Mortgage Loan Officer in 2021

If you’re interested in becoming a mortgage loan officer, you probably already know at least a bit about the position. In short, you should know that it can be demanding, challenging, even stressful, and there’s a host of general business skills that benefit or can be critical to long-term and significant success.

Many skills can be learned on the job. Others, such as being a “people person” or being unafraid of “working” a room or holding your own in the company of attorneys or financial planners, are not critical, yet will help when it comes to generating referral business in some of the more traditional fashions.

Still interested in becoming a mortgage loan officer? Good!

For many, it’s an amazing opportunity and one that can be very financially rewarding. This is especially true vs. so many other career paths that young business-minded individuals can take. It can even be a great “second” career for someone looking for a change or returning to the workforce after an absence.

Being a loan officer is not just a starting position, as you can climb the corporate ladder in some banks and mortgage companies. That’s even actually pretty common for accomplished mortgage loan originators. Stepping up to sales or branch manager positions, then regional management can be typical.

Suppose you’re interested in a career path that rewards you immediately and commensurately to how hard, long, or skillful you are willing or able to work; even a first step position can be a great choice.

Want to know how to become a loan officer? Let’s get started.

After the credit crisis of 2008, things changed. No longer could you merely survive an interview, get a little training, have business cards printed the next day and be shooed out the door to sink or swim with a slap on the back and a hardy “now go out and get some deals.”

It’s best to know where you might like to work as a mortgage loan originator. There are many different lending institutions—banks, mortgage banks, mortgage brokers, credit unions, etc.

Some may offer only traditional mortgage loan products such as conventional fixed and adjustable-rate loans. Others may specialize in government loans such as FHA or Veterans Administration (VA) products. Still, others may offer or at least provide access to almost everything, including much less common home loan options like construction financing or even reverse mortgages.

As well, depending on the area price ranges and demographics, having options for “jumbo” and “superjumbo” loan amounts can be vital if you want to target the high-end and high-net-worth borrowers.

Having a friend in the industry, or getting to know a couple of mortgage loan originators or mortgage brokers, can be extremely helpful in learning how to become a loan officer and pick the right company for you. Getting a feel for different styles is helpful, too, so always ask if a mortgage company is oriented to doing business online through lead generation or more through client and business referral partners, such as real estate agents, builders, attorneys, CPAs and financial planners.

Chances are that if you don’t already have a few mortgage industry friends or followers in your social media accounts, you can ask your contacts if they have any who can give you good advice on how to become a loan officer. Most good originators should be happy to help you and may even set you up to speak with a manager for an initial conversation.

And once you reach that point of starting to talk with those looking for new hires, today, there will be a few phone and face-to-face interviews. You may be asked about certain aptitudes, and you’ll need to study and take a test (the NMLS SAFE Act MLO Exam). There will undoubtedly be both general and employer-specific mortgage loan origination software training to take. And before being licensed, you’ll need to have your fingerprints taken and pass a background and credit check.