Guide To A Mortgage Loan Broker Career Path
Mortgage loan brokers are finance professionals who source the best loans to fit their clients’ needs. A career path to being a mortgage loan broker requires many interpersonal skills such as customer service, communication, and being able to balance between client and finance institutions.
What does a mortgage loan broker do?
A mortgage loan broker counsels clients on selecting loans from various lenders. They are also expected to process loan applications and have an in-depth understanding of regulations concerning real estate financing.
Mortgage loan brokers generally work traditional business hours, though client management and communication may occur after office hours. New mortgage loan brokers usually start their career path off with realtors and businesses to find clients early on in their professional life. Meanwhile, many successful mortgage loan brokers may have managed to take their careers on more lucrative paths by finding jobs in multinational companies or becoming independent mortgage loan brokers.
Becoming self-employed is a popular career path for mortgage brokers. But, it pays to gain experience with more established firms in the real estate or finance industry first.
Responsibilities of a mortgage loan broker
Mortgage loan brokers are also in charge of processing the relevant paperwork for the client and passing it on to the lender for underwriting and approval.
Since the mortgage brokerage industry is still relatively new to Malaysia, mortgage loan brokers in Malaysia do not need to obtain a license to process applications.
In Malaysia, mortgage loan brokers receive an origination fee from the lender when the loan transaction is successful. An origination fee, or discount fee/point, is a payment for originating a loan. It is usually between 1% to 2% of the loan amount.
Salary Range
The average salary of a mortgage loan broker is RM 34,439 per annum, according to Payscale. Years of expertise, good interpersonal relationships, and commission rates are key factors that contribute to the salary of a mortgage loan officer.
What is the career path of a mortgage loan broker?
Gaining more experience as a mortgage loan broker can lead to the right opportunity and is the key to a fulfilling and lucrative career path.
Junior Level (1-3 years experience)
Mid Level (4-8 years experience)
Senior Level (8 years or more)
Mortgage loan brokers tend to have multiple roles that can help drive a career forward. Gaining more experience in multiple aspects is needed to be an effective mortgage loan broker. Experience in the following positions would be valuable.
- Mortgage Underwriter
A mortgage underwriter usually works directly for the bank or credit union. They make sure a borrower has correctly represented their financial profile on an application and often evaluate loan applications for both legal compliance and accuracy.
- Loan Officer
A loan officer works directly for a specific financial institution. They can only obtain loans from their own company. Loan officers also review documents, suggest mortgage options, and originate loans on behalf of the financial institution they work for.
- Mortgage Originator
Anyone who originates a home loan could be considered a mortgage originator, which means both mortgage loan brokers and loan officers fall under this category.
(Read more: This Downloadable Career Development Planner Will Be Your Work North Star)
What requirements do you need to become a mortgage loan broker?
Required skills
Establishing and maintaining relationships with both buyers and lenders are very important. Soft skills needed to become an effective mortgage loan broker include:
Customer service
Customer service skills are vital to any mortgage loan broker. Good relationships between clients and lenders are essential to generate business.
Critical thinking
Mortgage brokers need to juggle several different issues at the same time and often gather information and statistics for their clients. Good critical thinking and organisation skills are very useful.
Communication skills
Mortgage loan brokers deal with multiple requirements and questions from both clients and institutions. It is very helpful for brokers to be able to explain any details — whether in writing or verbally — in a clear, concise way.
Attention to detail
Mortgage loan brokers create relationships between lenders and borrowers that could last years. Attention to detail keeps negotiation skills sharp.
Educational Background
Anyone wishing to embark on a career path to becoming a mortgage loan broker needs at least a high school diploma. While a college degree is not necessary to become a mortgage loan broker, a degree in a finance-related field may be required by some employers. Other fields of study that can help set the path to a career as a mortgage loan broker include business and economics.
Opportunities for Continuous Education
- Take online or in-person courses to keep up to date with real estate management and compliance laws.
- Explore and study other specialisations within the field of Loan Brokerage, to widen your career path.
- Consider finding a mentor to help build good business practices and form new relationships with prospective clients.
(Read more: 10 FutureLearn Courses To Boost Your Skills)
How to Write a Resume for a Mortgage Loan Broker
FULL NAME Home Address | Mobile Number | Email Address Professional SummaryMortgage Broker with 10 years of career experience and outstanding communication and analytical skills. Possess in-depth knowledge of mortgage products and services. Has exceptional skill in up-sales and marketing. A strong cultivator of lasting business relationships with outstanding communication and analytical skills. Energetic and client-focused.Core Qualifications
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Download our free mortgage loan broker resume template here
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