Changing Your Career to Mortgage Lending
After multiple years of falling, the median income of a Realtor is at long last on the way up, climbing 2.3 percent in 2011 to $34,900, which is the latest full year obtainable. It used to be that just 5-10% made all the money, but statistics show that 17 percent earn over six figures. Even better are the numbers for licensed brokers, who earn on average $48,400 per year. With the housing market getting even stronger, expect earnings to continue rising for real estate agents and mortgage originators.
So, is it a good time to make the career switch? Although licensing requirements vary by state, becoming a licensed mortgage originator requires a 20-hour NMLS class and national exam. (To learn more, go to the National Licensing Mortgage Registry.) Outside of licensing, a particular set of skills are necessary to make the transition a success. You’ll need the ability to…
- Be willing to work long hours. You may have to work 60 to 70 hours a week, including weekends and evenings. to accommodate realtors and borrowers. Whie you may work hard and long hours, there’s also a considerable amount of freedom too (unless your work for a national bank). As a top producing originator, it is not uncommon to to take extended vacations during the year.
Whether you’re headed to the doctor, need to attend your child’s school performance scheduling appointments with borrowers are easily worked around a frantically paced day. As long as you pull your weight in closed transactions, you’ll also be able to take time off whenever you feel the need arises.
2. It is not all sales either. While mortgage lending is basically a sales job, just 15 percent of those who changed careers claim they had a background in sales prior to making the switch. It’s a lot more crucial to be relaxed interacting professionally with new clients, and genuinely listening to their objectives.
3. There’s No Ceiling On How Much You Can Make. If you work for yourself, as many loan originators do, or you’re employed by a large company, you’ll usually be regarded to as an independent contractor. While that means there’s no paycheck when you’re not closing, it also means that there isn’t a maximum amount of how much you can earn each year.
4. Growth Can Be Unlimited. If you become a top producer in the mortgage business, you can become a branch manager and grow your business to 5, 10, 50 or over 100 employees, whatever you desire. There are not many business owners who have that capability.
No matter if you decide to continue with a one-man operation or hire other originators is really your call once your business starts doing very well