If you are looking at career options and one of them is becoming a mortgage broker this article offers some important information on what that job entails and what you can expect from a mortgage broker salary. Keep in mind that to be a mortgage broker there are some education requirements and other skills that you will need. These include;
- Excellent verbal and writing skills
- Experience in banking, sales or marketing can be helpful
- Understanding the criteria for credit worthiness and credit reporting
- Knowing the lending rates and terms of lending institutions
- Bachelor’s degree in a relevant subject such as finance
- Proficiency in math
- A license to practice from the state you are working in
- There are voluntary professional certifications that you can earn
- Outgoing personality
- Willingness to work long hours and accommodate customer’s schedules
What does a mortgage broker do?
Mortgage brokers work with their clients offering information on how mortgages work, and working together to work out which would work best for them. They do not themselves loan money rather they act as an intermediary between those who want to borrow and those who are willing to lend. Based in an office they can offer advice to clients on improving credit rating to get better mortgage rates and find the best interest rate and terms whether it is for a commercial property or a residence. The job involves researching loan terms and interest rates so that you can secure the best rates, and these things are always changing so that part of the job is always ongoing. Other duties include studying lending contracts and interacting with multiple lenders. People with poor credit or those who have less funds for a down payment have more success getting a loan when they use a mortgage broker. When a loan application is approved a mortgage broker will also oversee the documents and their signing. You can work independently as a contractor, run your own brokerage or work as part of a financial solutions company.
Looking at a mortgage broker salary
The majority of earnings for a mortgage broker come from commission and bonuses but there can be a base salary as well. Salaries vary depending on where in the country you work as well as what size town or city you are in and on how the economy and market is doing. On average a base salary can be from $40,000 to $82,000 a year and then on top of that bonuses ranging from $1,500 to $11,000 plus commissions ranging from $25,000 to $102,000 plus profit sharing ranging from $1000 to $112,000. The more experienced you are as a broker the more you can expect to earn too. Most brokers bring in between $60,000 and $100,000 a year but because of all the factors involved the range of a total mortgage broker salary can be as broad as $29, 000 to $230,000.
The recent downturn in the real estate market had a very serious impact on this job. 50% of jobs were lost and those who managed to keep them saw a real drop in their income. You cannot accept commission from both the lender and borrower on the same transaction and a typical commission is around 0.5% of the loan total.