6 Benefits of Becoming a Mortgage Originator
Purchasing a home in California, whether it’s your very first time or you’re a seasoned pro, is an nerve racking journey form viewing homes online to all the home showings with your real estate agent. But before all that looking around, it is a wise move to have your home loan arranged.
Many people apply for a mortgage loan with their local bank or credit union. However, more popular than banks are local and regional mortgage companies. In either of these types of companies, you can help borrowers obtain financing as a mortgage originator.
As a mortgage originator you are finding the right loan product for them. You do all the hustle work for them by proposing mortgage products based on their needs. You need to get licensed in the state you do business in order to quote interest rates and discuss terms.
You Choose Professionals to Network with
Your referral network can help bring in business for years to come. Potential partners include real estate agents, tax accounts, former work colleagues and more for consumer business.
Additionally, as a loan originator, you’ll have a multitude of lenders to pick mortgage programs from ranging from government loans, conventional mortgages, and sometimes even commercial programs. You will cultivate relationships with mortgage lenders which may include banks, credit unions, and others.
A few of these connections, may offer special rates or discounted fee promotions to spur more clients. Co-workers were fun to work with.
Flexible Schedule
The amount of time you spend working out of or in the office depends on the type of loan officer you are. In most cases, loan officers do generally have more control over their schedule and added freedom as opposed to colleagues in other careers. The U.S. News & World Report agrees with that assertion and claims a loan officer is rated as “above average” in having the option of a non-traditional work schedule while sustaining a balance between life and work.
The average work commute is 25 minutes or more than 200 hours a year! How many more loans could you close with 200 extra hours? [1]
Enjoy Job Security in a Growing Market
With housing in constant demand, your career will be in high demand as well. Based on data from the Bureau of Labor Statistics, the employment for loan officers is forecasted to increase by 8% up through 2024. That is great job security for the next six years.
The Best Clients are from your Referrals
Once you begin to close loans for agents and your network, you’ll soon realize that your best borrowers are the ones who were referred. The reason is you don’t have to constantly be reselling yourself. It is likely you will also get a name of someone needing a mortgage from the referred person as well. Sounds like a fun gig when everything becomes aligned the right way.
Income Can Be Increased Quickly
Basically, the harder you work the more you will get paid, assuming you have a decent comp plan. Working harder may range from making 50 more phone calls a week to increasing your advertising to prospects. With all the flexibility and freedom to schedule when to work, perhaps you want to put in some overtime to crank out a high income for a few years.
Helping People
You have the chance to help people accomplish their goals of homeownership. This can include originating a reverse mortgage to help senior citizens remain in their home, helping an active duty military or veteran purchase a home with zero down financing, or educating a first time homebuyer with their home. As expected, the best part of the job is speaking to very excited and happy clients once the loan closes.
In conclusion, the mortgage business has to be one of the most highly regulated in the US besides the EPA. What this means for you is serious compliance. One of the keys is to join a company that has a great culture. Otherwise, you may feel very lost and frustrated after becoming a loan officer.
[1] 2006-2011 U.S. Census