Although there are many people involved in the process of assisting a borrower in securing a mortgage for real estate, perhaps the most vital person in the whole mortgage lending operation is the mortgage broker. Usually, the broker is the main bridge of communication with the borrower in the attempt to secure a mortgage for real estate. Therefore, the job of a mortgage loan originator is essential and requires a unique set of skills in order for the job to be properly carried out.
Here are five benefits of becoming a mortgage loan originator:
If you are considering a career in becoming a mortgage advisor or mortgage broker, then you are in luck. These days, Millennials will have entered the housing market and are looking for mortgage lending deals and the Baby Boomers will be nearly out. This will cause an increase in the loan officer job market and a gap for the younger generation to fill. So, if you’re contemplating a career shift, now is the time to do it.
Moreover, the actual need for mortgage professionals tends to oscillate with the state of the economy. Now, years on from the 2008 financial crisis and the economy has started to heal, so more people are looking to purchase homes. Thus, the need for loan officers is set to further increase over the coming years.
Let’s break down the semantics of the job market. Since the need for loan officers is increasing, especially with baby boomers leaving the job market, a great majority of loan companies will provide numerous perks and benefits to their mortgage advisors that go above and beyond the standard origination fee. These perks and benefits include health insurance, payment increases, sales commission, 401k, and mortgage and advertising leads.
In addition, some companies actually add on a few more specific perks for instance, some loan companies offer free gym membership, catered lunches, and extra vacation days. In actuality, the U.S. News & World Report concluded that mortgage brokers were essentially able to establish great and comfortable lives at home and abroad. In all honesty, becoming a broker is downright rewarding, especially in the growing economy.
One of the best advantages of becoming a mortgage advisor is that you get a flexible schedule. What does that mean? You get to choose your own hours—basically whatever suits you. As a matter of fact, you can choose the time you spend in the office and time you spend working remotely. For example, a commercial advisor is prone to spend a lot of time away from the office and more time communicating with their clients on the phone or electronically. However, most advisors have meetings from time to time and other events on weekends and holidays. Still, more often than not, brokers are generally able to determine their own schedule.
According to the U.S. News & World Report, loan officers are ranked as “above average” in categories such as schedule flexibility while maintaining a normal life. Ultimately, this means that many loan officers are able to distinguish a fine line between a comfortable life and work.
The pay grade for a mortgage broker always fluctuates from time to time. Nevertheless, the median salary for a loan officer is $41,000. This amount is fairly good for the average American, but the great part is that loan officers don’t have a set limit of how much they can earn. While the highest percentile of loan officers salaries can reach up to $120,000, the income for this job can grow much higher. For example, many brokers are paid by an additional commission added to their base pay.
The average commission rate is 2%, so if a loan officer completes a mortgage with the amount of $250,000, they will earn $5,000. That is the amount of money some people make in a month. If a mortgage professional successfully completes a mortgage of $250,000 every month, they will earn approximately $48,000 a year. However, most complete anywhere from 18-25 mortgage loans a year.
Perhaps the greatest benefit of becoming a mortgage broker is that you get to help people. It is every young adult’s dream to purchase their first home and by becoming a mortgage broker, you are bringing their dreams closer to reality. More often than not advisors will feel rewarded knowing they are helping someone obtain something. In this sense, a mortgage broker has the job of helping people buy a home and make choices that will follow them for the rest of their lives.
In conclusion, there are many benefits of becoming a mortgage broker. However, these are not the only advantages. If you are truly interested in breaking into this great career field, go ahead and start your own research. You’ll soon find out that the pros definitely outweigh the cons.