Your Guide to Texas Mortgage Loan Officer Pre-Licensure Education

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

Real estate offers multiple career paths and of the numerous options available one of them is a mortgage loan officer (MLO). 

This is one of the rapidly growing careers and there is a growing demand for skilled mortgage loan officers. 

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

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. 

This career offers a lot of scope for employment and high income generation, especially in Texas where the demand for residential real estate is steadily growing. 

As Texas continues to attract homebuyers and migrants from across the country, more individuals and companies are looking for the services of mortgage loan officers. 

Due to the low mortgage interest rates, there is a strong demand for home loans and financing services which means working as a loan officer in Texas can be a lucrative way to improve your earning potential. 

Did you know that you can earn as much as $200K annually as a licensed MLO in Texas? 

Plus, you will enjoy the benefits of working in a growing industry while experiencing the satisfaction of helping people achieve their homeownership goals. 

Adding to that, it is a job with a low stress level and good work-life balance so you can really build a fulfilling career as a loan officer. 

However, to achieve this goal, you must earn an MLO license approved by the state of Texas and the NMLS (Nationwide Multistate Licensing System). 

invest in completing pre-licensing qualifying education and learn what is required to work in a professional industry. 

Completing pre-licensing education is mandatory to obtain your NMLS MLO license in Texas and if you are interested to learn more about it, this article will help you get started. 

In this guide, we will discuss in detail the licensing requirements to obtain a mortgage loan originator license in Texas along with the qualifying criteria. 

Plus, you will also learn about the MLO license pre-licensing curriculum including the mandatory topics and courses required as part of your qualifying education. 

Who is a Mortgage Loan Officer

A mortgage loan officer is a licensed professional working at the intersection of the real estate and financing industry.

Mortgage loan officers (MLOs) are typically employed by financial institutions, credit companies, and mortgage loan providers to assist clients and consumers in finding a suitable loan product and plan. 

Since MLOs deal with financial and credit information, they must acquire the required financial and industry knowledge by completing NMLS-approved courses. 

NMLS (Nationwide Multistate Licensing System) is the supervising and licensing authority for loan officers in Texas and other states. 

Further, loan officers are also required to clear mandatory background and credit checks. 

MLOs are required by the law to obtain a mortgage originator license in Texas to be legally allowed to assist clients in financial decision-making. 

If you are an aspiring loan officer, you must be prepared to complete pre-licensing education, training, and courses to cover the essentials of working in the finance and mortgage industry. 

MLOs earn money in two main ways - firstly, on a fixed salary basis and secondly, on a commission basis where they make around 1 to 3 percent on every deal. 

Experienced and senior loan officers may also receive additional perks and bonuses from their employers for originating bigger and more loans. 

The Duties of a Mortgage Loan Officer

Mortgage loan officers are in high demand in the financing and mortgage industry and they can find employment opportunities with lenders and credit providers across Texas. 

All you need to get started is obtain a MLO license in Texas and once you do so, you can legally originate loans on behalf of a bank, credit union, or financial company. 

However, as a mortgage loan officer, you will do more than just originate loans, you will also be handling a range of supplementary and important tasks as part of your job such as: 

• Collect and obtain the financial and credit information of individuals interested in obtaining a mortgage loan. 
• Meet and interview potential clients who are looking to explore mortgage financing solutions for their needs.
• Understand the specific needs and financing requirements of individuals who want to finance their property purchase. 
• Evaluate and assess the financial health and creditworthiness of a potential client on the basis of their credit history, income, and other factors. 
• Present different loan options, terms, interest rates, and payment plans to meet the mortgage needs of clients depending on their purchasing power and financial health. 
• Guide clients through the various stages of the mortgage financing process, right from evaluating loan options to applying for a loan and completing paperwork. 
• Answer any questions and clarify any doubts of the borrowers related to the loan plan, interest rates, tenure, and payment terms. 
• Act as a liaison between the lender and the borrower by bridging the gap between the two and coordinating a seamless loan closing process. 
• Ensure compliance with the state and federal laws for loan officers and credit providers by making sure of accurate and proper documentation and paperwork. 
• Research industry trends and emerging developments in the finance, mortgage, and real estate industries while scouting for new opportunities and leads. 

In addition to the above, your exact day-to-day duties may vary depending on your employer’s discretion. 

Benefits of working as a MLO in Texas

If you are completely new to the real estate or mortgage industry, you might be wondering whether pursuing a career as a loan officer in Texas is worth it or not. 

Let us give you a detailed look into some advantages of choosing this career path. 

• High earning potential: 

One of the biggest advantages of working as a loan officer is the high potential for making a good salary. 

As per the U.S. Bureau of Labor Statistics, the average salary for a skilled MLO is around $170K annually 

Did you know that many real estate agents choose to work as loan officers on the side to make extra income and generate additional revenue?

Even if you are starting a new career, your starting salary will be decent and as you gain industry experience, you can expect to earn a six-figure income along with extra perks and benefits.  

• High demand for jobs:

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

The demand for housing has led to an increase in consumers looking for mortgage financing. 

As people are looking for money to make their big purchases, there is a growing need for skilled loan officers, especially in the booming real estate market of Texas. 

If you are seeking a career where job security is assured, then you cannot go wrong with being a loan officer.

• Flexible work environment:

Unlike the path of a real estate agent or a broker, working as a mortgage loan officer is generally more flexible and less stressful. 

Many MLOs have reported satisfaction with their working environment and schedule since the role allows one to work in a remote or a hybrid setup as well. 

If you are seeking a flexible work-life balance and want to set your own working hours, then a career as a loan officer can work wonders for you. 

The best part is that you need not have a bachelor’s degree to get a job as a loan officer! 

All you need is a mortgage license in Texas and you can pretty much work from anywhere and get your job done. 

In addition to the above, there are many benefits of working as a mortgage loan officer such as a rewarding and fulfilling job profile, multiple opportunities for career growth, and so forth. 

Next, let us talk in detail about how to go about getting your MLO license in Texas so you can prepare for your career journey with confidence. 

Getting an MLO license in Texas

To become a licensed loan officer, you must fulfill the basic eligibility criteria and the qualifying education requirements. Here’s the step-by-step process you need to follow. 

Step 1: Register with the NMLS

The first step is to create an account with the NMLS and obtain your unique account ID. 

The NMLS is the largest database of all licensed mortgage loan officers and firms and thus you must create your account to complete your registration. 

Step 2: Complete pre-licensing education

After registering yourself on the NMLS website, you need to complete the educational requirements to obtain a mortgage loan license in Texas. 

According to the guidelines, all applicants must complete 23 hours of NMLS-approved pre-licensing education to qualify for a license. 

Out of the 23 hours, you must complete 20 hours of general elective coursework and an additional 3 hours of Texas-specific courses covering the state laws and regulations. 

Note that you are free to join a real estate college and learn in a classroom environment or enroll in an online course provider to complete pre-licensing education. 

Completing pre-licensing education is not merely an item to be ticked off the requirements list, it is a way to understand the mortgage lending profession, its rules, regulations, and nature of work in detail. 

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

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

Since you will have to take the SAFE MLO test after completing your education, it is recommended that you complete your courses with attention and sincerity. 

Step 4: Take the National SAFE test

After you have successfully completed 23 hours of pre-licensing NMLS-approved education, the next step is to take the SAFE (Secure and Fair Enforcement) exam in Texas. 

The exam consists of 120 multiple-choice questions and they will be based on the curriculum covered in your pre-licensing education. 

To clear the test, you must score at least 75 percent or above. It will cost $110 to take the NMLS licensing exam in Texas. 

Step 5: Complete background check

As per the NMLS guidelines, it is mandatory for all applicants to undergo background verification and criminal history checks. 

You will be required to submit an electronic copy of your fingerprints along with a credit report to the NMLS. 

This is to ensure only ethical, honest, and qualified professionals are allowed to join the industry. 

Step 6: Find Sponsorship

The final step is to find a sponsoring employer or a mortgage loan originator who will be willing to take you in. 

This is mandatory for newly licensed loan officers and you are required to submit your sponsorship documents to the NMLS for approval.