The easiest way to become a mortgage loan officer license in Texas

Do you want to work in a high-growth profession where you can make a living helping people and enjoying a stable work-life balance?

If you are aiming for a well-paying career where you can achieve financial independence and earn a six figure income, then working as a mortgage loan officer can be an ideal career.

Did you know that loan officers and mortgage brokers in TX can make as high as $120K in a year, plus they enjoy flexible timings, paid vacations and insurance benefits as well.

A mortgage loan officer (MLO) is a licensed professional who works as an intermediary between lenders and borrowers, helping parties connect and do business with each other.

If you are excited to learn more about this career and profession, keep on reading as this post will dive deep into how to become a mortgage loan originator in Texas from scratch.

Texas’ real estate market is making new waves, thanks to the unprecedented demand for housing and residential real estate.

The Lone Star state is amongst the fastest growing real estate markets, making it an ideal opportunity landscape for aspiring loan officers and mortgage brokers.

As more migrants and homebuyers move to Texas, the demand for mortgage loans and financial services continues to grow. As a result of this, the professional prospects for MLOs in TX are poised to grow in the coming years.

To work in the mortgage lending industry, you must obtain and earn a mortgage loan officer license in Texas as it is a foundational step and an essential career milestone.

In Texas, only licensed professionals are legally allowed to find employment as loan officers or mortgage brokers and assist consumers and clients.

Getting your license might seem complicated or overwhelming, especially if you are a beginner, but in reality, it is a straightforward process which can be completed easily.

All you need is the right information and guidance on how to approach the process of becoming a licensed loan officer in TX and this post will give you all the details.

If you are ready to explore the what’s, why’s and how’s of working as a MLO in TX, keep on reading till the end as we answer all your questions.

Who is a Mortgage Loan Officer

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.

A Mortgage Loan Officer or a MLO is a professional who works with lenders such as credit companies, financial institutions and loan providers to provide financing to consumers.

MLOs act as enablers and you will work on behalf of lenders to assist borrowers in achieving  their mortgage financing goals with clarity and confidence.

The core job duty of a loan officer is to act as an intermediary between lenders and borrowers, while being the go-to-person for everything related to mortgage loans.m

MLOs help borrowers navigate through the process with ease and confidence by working with borrowers throughout the financing journey.

The career path of a loan officer and mortgage broker is both rewarding and fulfilling - The top 10 percentile of loan officers in Texas are able to earn as much as $150K annually.

Even the starting annual base pay for a licensed loan officer is around $70K to $80K.

On top of a good earning prospects, the growing demand for licensed mortgage brokers and loan officers makes this job a good career path in terms of job security and future prospects.

If you are seeking better work-life balance, higher financial freedom and an opportunity to help people, then working as a mortgage loan originator can help you achieve this goal.

In the coming sections, you will learn more about how to become a mortgage broker in Texas in a step-by-step way.

What does a Mortgage Loan Officer do

Loan officers act as an intermediary between the lenders and the borrowers and your job responsibilities and duties will reflect that.

Here are the most common tasks and responsibilities you will be handling in this role:

• 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 report, 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.
• Determine and suggest the most suitable mortgage plans, terms and interest rates.
• Provide financial assistance and guidance in choosing from various mortgage plans.
• Assist in the collection and submission of required paperwork for loan application.
• 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 and loan originators and brokers to ensure a seamless loan closing process.
• Negotiate the best mortgage terms, rates and payment plans on behalf of your clients and help them make informed financial decisions.
• Keep yourself up to date on industry trends and latest developments in the lending and mortgage industry.

Clearly, there is not going to be a dull moment if you are working as a MLO in Texas, and since you will be working as the go-to-person for your clients, it is important to prepare.

Working as a mortgage broker is unlike a conventional nine-to-five job as it offers a dynamic job profile with a diverse range of duties.

This is another reason why getting a mortgage broker license Texas is an essential step in building a thriving, successful career with a solid foundation.

Another important reason why you need a license is the fact that the mortgage lending industry is highly regulated and governed by a set of laws and standards.

Since MLOs deal with financial and personal information of consumers and institutions, it is important to obtain regulatory and legal compliance.

If you are keen to pursue a career in this profession, you must be prepared to apply for a license and complete all the mandatory requirements.

Having a valid mortgage loan officer license in Texas is a legal proof that you have the required skills and training to provide financial guidance and assistance to your clients.

Qualifying requirements to become a Loan Officer

Now that you have learned about the job role and duties of working as a loan officer, you might be wondering how do I become a mortgage broker in Texas easily.

The process of getting licensed requires completion of various state and federal requirements, as established by the NMLS (Nationwide Multistate Licensing System).

The NMLS is the regulatory authority responsible for issuing and renewing licenses to mortgage lending professionals and firms.

NMLS is the country’s largest database and centralized authority for all licensed mortgage brokers, loan officers and financial services providers.

As per the NMLS, aspiring MLOs must meet the minimum eligibility criteria to qualify for a career in the mortgage lending industry which is:

• Be at least 18 years of age or older.
• Be a legal resident of the United States or a lawfully admitted alien.
• Have a high school diploma or GED equivalent in education

Meeting the basic statutory requirements is mandatory to apply for a mortgage loan officer license in Texas and start your career.

If you fulfill the above requirements, the next step is to register with the NMLS, create your profile and obtain your unique NMLS identification number which will come in handy.

Education requirements to become a MLO in Texas

Are you thinking about how to become a mortgage loan officer in Texas and start a rewarding and exciting career journey?

The NMLS requires every applicant to complete the mandatory 20 hours of pre-licensing education to equip themselves with the knowledge and understanding of the mortgage and financing industry.

It is important to demonstrate financial knowledge and understanding of industry regulations as a licensed professional and get your license.

To obtain a mortgage loan officer 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.

The 20 hours pre licensing curriculum covers fundamental topics and courses such as:

• Federal Laws and Regulations (2 hours)
• Fair practices, fraud protection and ethics in  mortgage lending (3 hours)
• Lending standards and principles (2 hours)
• General Electives (12 hours)

To obtain a license, you must complete an additional 3 hours of Texas specific courses covering state laws and regulations for professionals.

One important aspect to keep in mind before pursuing education is that you must choose a NMLS approved education provider only to learn from an up to date, accurate curriculum.

WIth that said, you are completely free to choose your preferred medium of learning i.e. you can choose between in-person classroom learning or enroll in an online pre license course.

The significance of pre license courses go beyond just fulfilling a mandatory license requirement - they are the foundation which will help you learn about the mortgage and lending industry, its principles and practices.

Completing courses will give you an understanding of how to work with clients, understand their needs and offer assistance as a trained professional to help them make the right financial decisions.

Most importantly, completing pre license education will help you prepare better for the next crucial step in your license journey.

The SAFE MLO exam requirements for mortgage brokers

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

Taking and clearing the SAFE test is mandatory for applicants who want to get their mortgage loan officer license in Texas.

The test consists of a total of 115 multiple choice questions covering both state and national specific portions. You will get 180 minutes to complete the test.

The test will assess your knowledge and understanding of the various laws, regulations and industry practices and to pass the test you must score at least 75 percent or above.

The level of the difficulty of the test varies on your preparation and how familiar you are with the topics and courses taught in your pre license training.

Complete the NMLS background and identity verification check

Since you will be dealing with and managing financial and sensitive data, it is important to prove good moral conduct to obtain your mortgage loan officer license in Texas.

The NMLS requires aspiring professionals to submit an electronic scan of their fingerprints along with their credit report for background and criminal history verification purposes.

You can submit your application along with the required documents and an individual form (MU4) on the NMLS website.

Once you have proved that you have no history of felony or criminal or unlawful activity, you will receive your license within a few weeks.

Find sponsorship and activate your license.

Congratulations on making this far and completing the long and rewarding journey of getting licensed as a mortgage industry professional.

However, there’s one more important step remaining and that is to activate your MLO license in Texas.

To do so, you must submit a proof of employer sponsorship to the NMLS by finding a state licensed firm or senior broker who will be willing to give you employment.

As per the NMLS license guidelines, newly licensed professionals must work under the supervision and guidance of senior professionals in Texas.

This step is crucial to activate your license and start working as a licensed mortgage broker or loan officer in TX.