Your Guide to How to Become a Mortgage Loan Officer in Texas Easily
Texas is witnessing strong demand for real estate as more buyers and homeowners are migrating to the state due to its attractive valuation, strong economy, and diverse culture.
Due to the growing population and steady influx of migrants from across the country, the Texas real estate market has been growing steadily in the last few years.
As a result of the rising interest and investment from homebuyers, the mortgage lending industry in Texas is also witnessing a galore of opportunities.
The positive trends and sustained demand indicate that the prospects for the mortgage and lending industry in TX are looking brighter than ever.
If you are interested in pursuing a financially rewarding career path where you can be of value to others, working as a mortgage loan officer might just be a great choice for you.
Loan officers work for financial institutions such as banks, credit companies, and private loan providers to offer mortgage loans to borrowers.
Since the demand for mortgage loans is growing, the employment opportunities for loan officers are also rising to support the needs of aspiring homebuyers and borrowers.
As a mortgage loan officer in Texas, your estimated pay will be between $80K to $120K and if you reach the top percentile of professionals, you can make as high as $150K to $170K.
Your income and earning potential will be high in this profession, plus you will also enjoy rewarding job perks like paid time off, catered meals, and the ability to work remotely.
Even the entry-level salary for an MLO is around $75K which means within a few years of work experience, you will be able to earn a six-figure income annually.
To achieve this professional goal and unlock a myriad of lucrative career opportunities, you need to first obtain a Texas MLO license.
Getting licensed is an essential step in starting your career, whether you are a complete beginner or someone interested in switching careers.
The good part is that you can easily complete the Texas MLO license requirements within a few months and obtain your license to begin with.
If you are seeking the answer to the question of how to become a mortgage loan officer in Texas from scratch, this post will answer all your questions in one place.
From the basic eligibility criteria to the state-specific education requirements, you will learn everything you need to know to start a career as a licensed loan officer in Texas.
The job profile of a Mortgage loan officer
Mortgage loan officers in Texas are expected to perform a range of tasks and duties as part of their job profile.
The main job responsibility of a loan officer is to streamline the process of obtaining a mortgage loan and assist homebuyers in the loan process.m
You will work as the first point of contact for people who want to apply for a loan and you will represent the lender which is generally a financial institution like a bank or a credit company.
Loan officers act as an intermediary or a bridge between loan originators and underwriters, and perform a range of duties such as:
● Meeting and interviewing prospects and potential clients to understand their specific needs and requirements.
● Collecting the required documents and gathering the paperwork to create a profile of prospects and clients.
● Assessing the creditworthiness and financial health of the loan applicants to pre-qualify them.
● Educating borrowers about the various types of loan products, financial services, and mortgage plans.
● Suggesting the most suitable mortgage plans and interest rates to meet the requirements of borrowers.
● Maintaining regulatory compliance with the state and federal laws and ensuring all the documents are accurate.
● Assisting your clients in completing the loan application and submitting the necessary documents along with the application.
● Building relationships with your clients and helping them navigate through the various stages of the loan process.
● Coordinating with loan originators and underwriters to facilitate the loan process and resolve any potential bottlenecks that might arise.
● Following up with leads and inquiries on behalf of your employer and suggesting to them your services and solutions.
● Guiding clients regarding important loan terms, policies, agreements, mortgage plans, and payment milestones.
● Approving or rejecting loan applications based on a borrower’s credit history, income, tax stubs, and financial assets.
A loan officer is responsible for hand-holding their clients from the first step to the last stage of obtaining a mortgage.
Most home buyers seek financing for purchasing a new home and to help achieve their goals, they seek the assistance and help of loan officers.
Your day-to-day responsibilities will vary, making the job less monotonous. Plus, you will get opportunities to liaise with industry professionals and grow your network.
You will mostly focus on getting mortgage financing approved for individuals and companies by working on behalf of banks and lenders.
If the above tasks and duties sound like something you will be happy to perform on a day-to-day basis, it is time to learn more about the Texas MLO license requirements.
How to become a Mortgage loan officer in Texas: The Basics
Are you interested in pursuing a promising career path as a licensed loan officer in Texas? If yes, then it is important to learn about what are the steps involved in your journey.
Working as a mortgage loan officer in TX will be a stable and thriving career path for anyone who is willing to start a career by dedicating a few months of their professional life.
If you are wondering how to become a mortgage loan originator in Texas, the first and foremost step is to meet the minimum qualifying requirements.
As per the NMLS (Nationwide Multistate Licensing System), aspiring loan officers must obtain a valid license to work with clients.
Since the mortgage and lending industry is regulated by state and federal laws and standards, it is important to meet the qualifying requirements to start a career.
As a loan officer in Texas, you will be employed by banks, credit unions, and financial institutions, and thus it is important to maintain compliance with the laws and regulations.
Having a license is legal proof that you have fulfilled all the necessary requirements and acquired the required knowledge and skills to work with clients as a professional.
Eligibility Criteria to become a Mortgage Loan Officer
To become a licensed mortgage loan officer, you must meet the minimum qualifying requirements established by the NMLS.
The NMLS is the official database and authority for all licensed mortgage brokers, loan officers, and financial services providers in the country.
To obtain a mortgage loan officer license, you must meet the basic statutory requirements which are:
● 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.
If you fulfill the above criteria, you can proceed to complete the next set of steps for getting licensed in the state of Texas.
Steps to apply for a Texas MLO license
If you are eager to know the answer to the question how to become a mortgage broker in Texas then keep on reading as we outline all the steps for you.
Remember that starting a new career is a commitment that requires time, money, and dedication.
To achieve your goal, you must be prepared to follow the step-by-step process diligently and ensure that you fulfill all the license requirements.
Step 1: Create your NMLS account and verify your information
Like most states, Texas also follows the licensing standards and guidelines established by the Nationwide Multistate Licensing System (NMLS) and processes applications through it.
Thus, you need to visit the NMLS website and register using your information.
Once you do that, you will receive a unique NMLS ID which you can use to log into your account as and when required.
Step 2: Complete NMLS-approved pre-licensing education
If you are wondering how to become a mortgage broker in Texas and start a career, then be prepared to complete the necessary education and training for the same.
The S.A.F.E. (Secure and Fair Enforcement) Act of 2008 has made it mandatory for aspiring loan officers to complete NMLS pre-license education.
The SAFE Act is applicable to all active as well as aspiring loan originators/officers working with or under a licensed and regulated firm or on their own.
Completing pre-license education is crucial to learn about the fundamentals of working in the mortgage and lending industry, and offer professional services to consumers.
According to the (NMLS), all applicants are required to complete 20 hours of mandatory pre-licensing training to qualify for an MLO license.
For residents of Texas, you also need to complete 3 hours of additional education covering state-specific courses.
Pre-licensing education will help you learn about the workings of the mortgage and financing industry and prepare for the next step of your licensing journey.
Note that you are free to choose your preferred medium of learning i.e. you can choose to join an in-person, classroom environment or enroll in an online pre-licensecourse for MLOs.
However, the important aspect to keep in mind is to choose a NMLS approved education provider to validate your course credits.
It is important to note that in addition to pre-license education course credits, some employers might expect you to have a bachelor's degree in finance or accounting.
Step 3: Pass the SAFE (Secure and Fair Enforcement) MLO test
After completing NMLS-approved Pre-licensing education, you can schedule the SAFE (Secure and Fair Enforcement Act) test.
Since the purpose of the SAFE Act is to protect the rights and interests of consumers, it wants to ensure that only qualified and knowledgeable individuals are given licenses.
To maintain the professional standards set by the NMLS, it is important to take the NMLS license test and pass it to prove your competency.
Irrespective of whether you are applying for an MLO license for the first time or have previously applied, you must pass the test to obtain a license.
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 and to pass the SAFE MLO test, you must score at least 75 percent or above.
Step 4: Pass the NMLS background and identity check
After completing all the steps discussed above, you might still wonder how to become a mortgage loan officer in Texas easily.
The next step is to clear the federal background verification and criminal history check which is a mandatory requirement.
To safeguard the rights of the consumers, the NMLS requires aspiring loan officers to meet the minimum standards of honesty, and integrity and prove good moral conduct.
Hence, it is a must to pass the background check and you can do so by submitting an electronic scan of your fingerprints along with the latest credit report.
After completing the above steps, you can proceed to submit your MLO renewal application by updating your NMLS record online and submitting the required documents along with it.
Step 5: Find sponsorship and activate your MLO license.
Once you have successfully completed all the steps discussed above, you will receive your Texas MLO license within a few weeks.
However, to work with clients and earn commissions, you must first activate your license and to do so, you need to find employer sponsorship.
As per Texas law, you must work under the supervision of a state-licensed mortgage broker or firm and gain practical experience.
Once you find a suitable employer, you can log into the NMLS portal using your unique identification number and submit your employer sponsorship details to activate your license.