How to get your Texas MLO license and start an exciting career

In Texas, the demand for mortgage loan officers continues to grow and the number of job openings for professionals is also on the rise. 

If you want to work in a dynamic, fast-moving, and rewarding industry, consider working in the mortgage lending industry. 

This profession offers high-income potential with numerous opportunities for growing and advancing in your career. 

Since the demand for residential real estate and housing is booming, the need for licensed mortgage loan officers (MLOs) is also increasing. 

Texas offers low interest rates which leads to a surge in demand for mortgage loans by homebuyers. 

Houston, Austin, Dallas-Fort Worth and San Antonio are amongst the most popular and fastest growing real estate markets in the country. 

With strong demand and sustained interest from homebuyers, the Texas’ housing market is showing no signs of slowing down. 

For most first-time homebuyers, getting a mortgage is a crucial step in achieving their home ownership dreams. 

This is where mortgage loan officers can help individuals obtain a mortgage loan and make their purchase more affordable. 

This means you can build a successful career in the long-term by entering the mortgage lending industry as a loan officer. 

You can take advantage of the numerous employment opportunities with financial institutions like banks, credit companies, private lenders and mortgage providers.

Did you know that the experienced loan officers in TX can earn as high as $120K annually as base salary while getting additional opportunities to earn commissions. 

On top of a great pay and rewarding income prospects, you can also enjoy a flexible schedule and a better work-life balance than many conventional nine-to-five jobs.

If you are keen to explore an exciting, fulfilling, and financially lucrative career path, working as a mortgage loan originator in Texas can be a great fit. 

However, to achieve this career goal and start working with clients, you must first obtain a mortgage loan originator license in Texas which is a mandatory requirement. 

Getting a license might seem like a complicated or time-consuming process, but if you take a step-by-step approach, it is straightforward and takes only a few months. 

In this article, we have discussed in detail what it takes to become a licensed MLO in Texas and how you can plan your career to achieve success in this profession. 

Understanding the job of a mortgage loan officer

Like many professions, building a successful career in the mortgage lending industry also requires education, training, and skills. 

Before we dive deeper into what it takes to succeed as a mortgage loan originator, let us take a step back and walk you through the job profile in detail. 

Loan officers work on behalf of lenders to help borrowers achieve their mortgage financing goals with clarity and confidence. 

The role of a mortgage loan officer involves an array of administrative, accounting, analytical, sales, and customer service-oriented tasks and duties such as - 

• Respond to inquiries and queries from potential clients and prospects who are looking to obtain mortgage financing for their needs.

• Meet and discuss the specific needs and loan requirements of individuals who are seeking a mortgage. 

• Collect, obtain, and procure the required financial and credit-related documents from clients and prospects. 

• Evaluate the financial health and assess the creditworthiness of borrowers on the basis of their income, tax reports, credit reports, assets, liabilities, and other factors. 

• Suggest various types of loans, payment plans, and financial solutions to meet the mortgage needs of clients depending on their needs and requirements. 

• Educate clients about mortgage plans, loan terms, interest rates and other financial information in clear, simple to understand terms. 

• Assist clients in completing the various steps for getting a mortgage, right from evaluating loan options to applying for a loan and completing paperwork. 

• Provide customer service by answering questions and clarifying any doubts of your clients related to the mortgage loan plan, interest rates, tenure, and terms. 

• Collaborate with underwriters, loan originators, and brokers to ensure a seamless loan closing process.

• Maintain regulatory compliance with the licensing laws and lending guidelines while ensuring proper documentation and accurate information are processed. 

• Keep yourself up to date on industry trends and key developments in the lending and mortgage industry. 

• Maintain a portfolio of clients and prospects on behalf of your employer and nurture relationships to ensure future success. 

Since loan officers are required to juggle multiple roles and tasks, you must prepare yourself for this role by acquiring some essential skills and training. 

In addition to getting a mortgage license in Texas, you must also gain a strong knowledge of the principles of the mortgage lending industry aligned with licensing laws and regulations. 

Plus, you must gain an understanding of how to work with clients, understand their needs, assist and educate them while ensuring they are making the right financial decisions. 

Since MLOs deal with financial and personal information of varying types, you must have strong attention to detail and excellent time-management skills. 

Having knowledge of sales and marketing will also help you cross-sell and upsell financial products and services to clients and prospects. 

Note that the above-listed tasks and duties are not exhaustive and are indicative of the most commonly performed responsibilities. 

Next, let us talk in detail about the career benefits of working in the mortgage lending industry as a loan officer/originator. 

Why choose the career path of a MLO

Choosing a career is not a simple task and it requires careful consideration, planning and deliberate efforts to pick the most suitable path. 

If you are someone who is good with numbers and likes to work with people, a career in TX as a MLO might just be a great fit for you. 

There are many advantages and benefits of working in this profession and some of the key ones are discussed in detail below. 

• Growing demand for loan officers:

The number of job openings for loan officers in the U.S. are plenty and it is projected that the number will continue to grow in the coming years. 

Industry estimates and job sites reports suggest that MLO has emerged to become one of the top five fastest growing job profiles in the country. 

Due to Texas’ strong housing market and increasing population growth, the demand for mortgage lending has also increased significantly. 

As more consumers look for mortgage financing, there is a growing need for skilled and licensed loan officers who can work for banks and private lenders. 

The high demand for professionals makes this job a good career path for the long run, especially if you are seeking a career where job security is assured. 

• High earning potential: 

The top 10 percentile of loan officers in Texas are able to earn as much as $150K annually as base pay. 

Even the starting base pay for a licensed MLO is a decent $75K for a year in addition to commission opportunities. 

For most professionals, a high paying job is a strong factor for deciding a career and if you too think the same, then working as a loan officer can help you achieve it. 

Imagine earning a six-figure income while being financially free and living a life of comfort and luxury.

You can be a part of a high-paying career by getting your MLO license and working with clients from anywhere in the state. 

• Better work-life balance: 

If you crave a consistent work-life balance and want to enjoy a flexible career, then working as a mortgage loan originator can help you achieve this goal.

In fact, active MLOs have reported work-life flexibility as one of the most valuable benefits in their profession. 

There are numerous remote and hybrid work opportunities for loan officers in the U.S. and you can take advantage of these benefits. 

Loan officers are allowed to work with clients and define their own schedules to meet their targets and goals. 

If you are a busy parent or an independent professional, the added flexibility is a huge boon, especially if you want to build a long-term career. 

• Exciting perks and benefits: 

If you thought the benefits of getting a mortgage originator license in Texas were limited only to a high salary and better work flexibility, the list goes on. 

Mortgage loan officers enjoy valuable perks like health insurance, paid time off, catered meals, and vacations. 

Working in the mortgage lending industry is unlike many conventional nine-to-five jobs and it offers an array of benefits on top of a high salary. 

If you are looking at a well-rounded profession which offers a diverse mix of career opportunities and job perks, working in the mortgage lending industry might be it. 

How to get a Texas MLO license

With bright career prospects and rewarding professional perks, now is a good time to start preparing for a career in the Texas mortgage lending industry. 

It is worthwhile to mention that loan officers are highly specialized professionals who are required by the law to obtain a valid NMLS license. 

The NMLS (Nationwide Multistate Licensing System) is the regulatory authority for issuing and renewing licenses to individuals and firms working in the mortgage lending industry. 

As per the NMLS licensing requirements, every individual must meet the basic statutory requirements for applying for an MLO license. 

• You must be at least 18 years of age or older
• You must be a legal resident of the state of Texas or a lawfully residing alien
• You must have a high school diploma or GED in education 

If you fulfill the above requirements, the next step is to register with the NMLS and create your unique NMLS identification number. 

You can create an account by providing the required information on the NMLS website and once you are a registered member you can proceed to the next step. 

The NMLS licensing requirements state that all applicants must complete a minimum of 23 hours of pre licensing education and training to qualify for a MLO license. 

To obtain a mortgage originator license in Texas, you must complete 20 hours of elective courses and 3 hours of Texas specific courses to learn about the state laws and regulations. 

Some of the mandatory courses you will cover during your pre-licensing education are: 

• Non-Traditional Mortgage Lending
• Federal Law
• Ethics

The purpose of completing pre license education is to gain the required knowledge about industry principles, practices, laws and regulations. 

After completing your education, you can take the MLO licensing test in Texas to prove your competence and skills. 

The exam consists of 120 multiple choice questions based on state and national specific components and to pass the test you must score at least 75 percent or above. 

If you successfully clear the test, you can apply for an MLO license by submitting an electronic scan of your fingerprints along with a credit report for background verification.