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How To Become A Mortgage Broker In 4 Steps | CC

How to Become a Mortgage Broker in Texas

Amanda Byford
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How to Become a Mortgage Broker

Are you considering becoming a mortgage broker or a mortgage originator? The opportunity is a great one because you don’t have to have any kind of advanced degree. 

Anybody can test for the license and become a mortgage broker or a mortgage originator. 

It is very simple to become a mortgage broker, however, that doesn’t mean it is easy. 

This provides an opportunity for all people irrespective of their gender or race to get into a professional career where you are doing significant work for people helping them get into a home. 

In this post, we will understand how to become a mortgage broker in Texas.

What is a Mortgage Broker?

When you are looking for a mortgage you have two choices, one, you can go to the lender directly, and two, you can use a mortgage broker

A broker is a middle person between you and the lender whose sole purpose is to get the best mortgage or refinance deals for you from the list of lenders the broker is associated with.

Steps Required to Become a Mortgage Broker

If you have just thought about becoming a mortgage broker, you might be surrounded by many queries about how to get success in becoming a top-class mortgage broker. 

You may need to know the requirement to become a licensed mortgage broker to start your business. 

Let’s jump into the step by step guide on how to be a mortgage broker in Texas.

Step 1: Attend a Mortgage Broker Class Before Acquiring the License

No matter which state you are planning to start your mortgage brokerage, your mortgage broker firm needs to be licensed. 

Before applying for the license you are required to complete a pre-licensure program

This 20-hour program will help you learn about federal and state laws along with financial regulations in regards to mortgages, loan officers’ behaviors, and more. 

These programs are administrated by the National Mortgage Licensure System (NMLS). 

You can also visit their website to get more information on the licensure program at your location.

Step 2: Pass the National Mortgage License System (NMLS) test

Once you complete your pre-licensure program, you must attend and pass the SAFE Mortgage Loan Originator Test. 

This is a nationalized test common for all the applicants and is administered by NMLS. 

This test will test your knowledge and understanding of mortgage practices and state-specific guidelines and regulations. 

To get a license as a mortgage broker you need to pass both federal and state portions with a minimum score of 75%.

Step 3: Establish and Register your Mortgage Brokerage Firm

Once you complete and pass your test, you now need to register your mortgage brokerage firm. 

The requirement for registering your firm may depend on the state that you are planning to start your business. 

They may require your business name, employer identification number (EIN), and your type of business. For example, LLC, C or S Corporation, Or Partnership. 

Your state licensing authority will help you register your business using these details. 

Pick your location for business and establish your clients and lenders accordingly. 

If you don’t have any references you may want to start working at a brokerage firm and then make your way into the business as an independent mortgage broker gradually.

Step 4: Build Relationships with Lenders, Realtors, and Other Partners

Once you are all set for business, you now have to get partners on board to ensure you never miss a business opportunity and you never run out of clients. 

You may need to build relationships with local real estate agents, title companies, lenders, insurance agents, etc. 

It is beneficial for you to have these partners as you can help them grow their business along with yours. 

With the Title companies and insurance agent, you can provide alternatives to your clients and help them do a fair comparison in the market as these are services that the borrower can usually shop for during a refinance or a home purchase.

Conclusion

Being a mortgage broker in Texas can help you achieve your financial goal as you can gain wealth if you follow the right path. 

As a mortgage consultant, you get to help people to process the loan from start to end. The cost of becoming a mortgage broker is not high. 

The time is great for the mortgage industry, and if you are selecting a mortgage broker as a career path, this might just be the right time for you.

Amanda Byford

Amanda Byford has bought and sold many houses in the past fifteen years and is actively managing an income property portfolio consisting of multi-family properties. During the buying and selling of these properties, she has gone through several different mortgage loan transactions. This experience and knowledge have helped her develop an avenue to guide consumers to their best available option by comparing lenders through the Compare Closing business.

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