Why You Should Consider Joining The Mortgage Lending Industry in Texas

Are you interested in exploring a career in real estate but do not wish to work as an agent or a broker?

In the U.S., skilled loan officers are highly sought after and it is projected that there will be a steady growth in job opportunities in the coming decade.

If you are in Texas and aspire to become part of a financially lucrative profession, a career as a mortgage loan officer might be a great option. This is one of the rapidly growing careers and there is a growing demand for skilled mortgage loan officers.

As a mortgage loan officer, you will find employment with banks, financial institutions and credit unions where you will guide clients to make financial decisions.

Mortgage loan officers are licensed financial professionals who help individuals and businesses secure mortgage financing for purchasing real estate.

As Texas’s real estate market continues to grow steadily and attract homebuyers from around the country, there is a growing need for housing and real estate financing,

Due to the low mortgage interest rates, there is a strong demand for mortgage loans and financing services which is why MLO is one of the rapidly growing careers.

As a result of this, the number of job opportunities for skilled mortgage loan officers and brokers are growing as well, paving the way for an exciting career path.

Working in the mortgage lending industry offers scope for employment growth and high income generation and working as a MLO can be a lucrative way to boost your earnings.

Did you know that you can earn as high as $200K annually as a loan originator and you can work in a job with a stable work-life balance to build a thriving long-term career.

If you are wondering how to become a mortgage loan officer in Texas, we have put together this guide which covers the step by step process in detail. .

Plus, we will walk you through the in-depth qualifying requirements to become a licensed loan officer to help you plan your career.

Who is a Mortgage Loan Officer

To start a career, it is important to learn about the job role, responsibilities and duties and get an understanding of what to expect.

In the mortgage lending industry, loan officers are professionals who work to bridge the gap between lenders and borrowers.

Mortgage loan officers (MLOs) are employed by financial institutions such as banks, private credit companies and lenders to provide mortgage financing to consumers.

MLOs act as enablers and facilitators who work on behalf of lenders to help borrowers to obtain a mortgage for purchasing a new property or refinancing an existing one.

MLOs help their clients navigate through the process of getting a mortgage with confidence and clarity about how to choose the right financial service.

Since MLO license in Texas deal with financial and credit information, they must gain the minimum knowledge and training of the mortgage lending industry.

NMLS (Nationwide Multistate Licensing System) is the regulatory and licensing authority for professionals and firms in the mortgage lending industry.

As per the NMLS, to be legally allowed to assist clients in financial decision making requires one to apply for a mortgage license in Texas.

Loan originators earn money by getting a fixed salary basis and via commissions of around 1 to 3 percent on every deal. As you gain experience and seniority in the role, you may receive additional perks and bonuses from employers for your services and expertise.

The role and responsibilities of a Mortgage Loan Officer

Before we get into the details of how to start a career in the TX mortgage lending industry, it is important to understand what exactly does the job role entails.

A mortgage loan officer is the first point of contact for borrowers who want to apply for a mortgage loan.

From administrative and accounting to sales and customer service, a day in the life of a loan originator comprises various duties and tasks such as:

• Meet and interview with prospective clients who are looking to obtain mortgage financing for their needs.
• Assist in the collection of personal, financial and credit information of individuals interested in obtaining a mortgage loan.
• Understand the specific needs and requirements of prospective clients looking for a mortgage
• Act as a bridge between lenders and borrowers and help to facilitate a transaction beneficial to both the parties.
• Assess the financial health and credit worthiness of prospects on the basis of their income proof, tax stubs, credit reports, assets and other factors.
• Evaluate different mortgage plans, loan options, interest rates and payment terms to meet the needs and requirements of clients.
• Guide clients through the stages of the mortgage process, from completing the loan application to finalizing the mortgage terms and payment plan.
• Negotiate the best interest rates, mortgage plans, terms on behalf of your clients depending on their needs and financial standing.
• Answer client queries and clarify their doubts related to the mortgage plan, payment terms, interest rates and key milestones.
• Liaison with mortgage brokers, underwriters and appraisers to facilitate a seamless loan closing procedure.
• Maintain regulatory compliance with the Texas laws and NMLS guidelines for loan originators for every transaction.

The job of a MLO requires dealing with financial and private information while working in a highly regulated environment.

Getting a mortgage loan license in Texas is a mandatory step since you will be working on behalf of loan originators and credit companies to help clients make financial decisions.

A license is a legal proof of your knowledge, skills and competence and shows that you have acquired the required training to provide financial guidance to clients.

Benefits of working as a MLO in Texas

If you are completely new to a career, you might be wondering whether pursuing it is worth it or not.

Before you apply for a mortgage loan officer license in Texas it is important to consider the benefits of choosing this career path as you will be investing time and effort.

Here are some key advantages of working in TX mortgage lending industry:

High demand for jobs:

The demand for housing has led to an increase in consumers looking for mortgage financing which has led to a rising number of job opportunities in Texas.

As more people seek mortgage financing and assistance, there is a growing need for skilled, licensed mortgage loan officers.

In the last few years, the job opportunity of a loan officer has emerged to become one of the top five fastest growing professions in the country.

If you are seeking a profession where opportunities for growth are abundant, security, then you can choose to work as a mortgage broker.

High earning potential:

Did you know that you can earn as much as $150K to $170K annually as a licensed MLO in Texas after gaining a few years of industry experience?

Even the starting salary for newly licensed loan originators is comfortable and you can choose this profession if you are eager to earn a six figure income annually.

Along with a stable annual income, loan officers can also make additional income in their job. It is no surprise then that many real estate agents choose to work as MLOS to generate additional revenue.

Flexible job profile:

If you are seeking a flexible work-life balance and want to take control of your work schedule, then a career in the mortgage lending industry might just be for you.

Working in the mortgage lending industry can help you achieve a stable work-life balance and this is one of the amazing benefits of choosing this career.

Many MLOs have been fully satisfied with their work-life balance, especially as they can get the opportunity to work remotely in this job.

In addition to the above, a career as a mortgage loan originator or broker can help you grow your professional network and expand your skills and knowledge.

Getting a MLO license in Texas

If you are curious to learn more about how to earn your mortgage broker license in Texas then we have outlined the step-by-step process below.

Step 1: Meet minimum eligibility requirements

The NMLS is the official authority for regulating and issuing licences to mortgage lending professionals and firms.

The NMLS requires every individual to meet the minimum eligibility requirements to become eligible for pursuing a career in Texas’ mortgage lending industry.

Meeting the statutory requirements is the starting point of your licensing journey and here are the requirements:

• You must be at least 18 years of age,
• You must have a valid SSN and proof of residence in the state of Texas
• You must have completed high school diploma or GED equivalent in education

If you meet the statutory requirements, you can visit the NMLS website and register yourself to obtain your unique NMLS identification number.

Step 2: Complete pre licensing education

According to the NMLS license guidelines, you must complete a minimum of 20 hours of NMLS approved pre license education to qualify for a MLO license.

For residents of Texas, you also need to complete 3 hours of additional education covering state specific courses.

The purpose of pre license education is to learn about the mortgage and lending laws, industry principles, practices and the guiding standards for professionals.

Some of the courses you will cover during your pre licensing education are listed below:

• Non-Traditional Mortgage Lending
• Ethics
• Loan Inquiry
• Mortgage Laws and Glossar

Students have the choice to join a classroom based, physical college and enroll in an online course provider to complete NMLS  pre licensing education.

Many students prefer the flexibility of online MLO pre license courses as they can be completed from anywhere.

Step 3: Pass the NMLS licensing test

Passing  the NMLS license test in Texas is mandatory for every student to obtain their MLO license.

The test consists of 120 multiple choice questions based on the courses and topics included in your pre licensing education curriculum. To pass the exam, you must score at least 75 percent or above.

Note that it will cost you $110 to take the test and complete your examination and you can schedule it as per your preferred time and date.

Step 4: Clear background identity verification

Texas requires aspiring loan officers to clear the background verification and criminal history check to obtain their MLO license.

To complete this step, you must submit an electronic copy of your fingerprints along with a credit report to the NMLS.

Step 5: Find employer sponsorship

Once you pass the license exam and clear the background verification check, you will receive your MLO license.

However, to activate your MLO license in Texas, you must submit employer sponsorship documents to the NMLS.