Mortgage Lender Careers Information
Mortgage lenders are a specific type of loan officer who, as the names implies, deal with solely with mortgages. It is their job to help clients secure the loans they need to purchase homes or commercial real estate. Mortgage lenders may also help those who already have a mortgage to refinance it for better terms or to take out a second mortgage.
Mortgage Lender Careers & Degrees
- Jones International University: Online
American Intercontinental University: Online
Colorado Technical University - Undergraduate: Undergraduate - Online
At its core, the job of a mortgage lender is all about assessing risk. There is never a guarantee that a mortgage will be repaid, but through careful study and experience, mortgage lenders are able to make the smart bets that assure the bank will not only make money, but also remain solvent and able to offer loans to others in the future.
As with any loan, a mortgage lender must first assess the applicant’s creditworthiness before approving any transaction. This means looking over his debt to income ratio and checking his credit history to make sure he is likely to pay back the loan.
A mortgage lender must also inspect the property to make sure it is worth the amount of money being asked. The lender will likely use a real estate appraiser to help in this task as well as databases that give general property values for a given area.
For commercial mortgages, the mortgage lender’s job is a bit more involved as she must also check the business’s profit history,or business plan if a new business,to make sure it is likely to make money and be able to pay back the money it borrows.
Mortgage Lender Careers Path
As a type of loan officer, mortgage lenders must have at least a high school diploma. For most individuals, and also those who work with commercial mortgages, a Bachelor’s degree in business, finance or a related field is necessary.
Mortgage lenders just starting out should expect to receive much on the job training. Mortgage lenders are also required by the federal government to be licensed. To get this licensure, they must complete 20 hours of coursework and pass an exam. They also must pass a background check and cannot have any felony conviction on record.
Mortgage Lender Careers: Compatible Personality Traits
Excellent analytic skills, excellent oral & written communication skills, people person, works well with others, eye for detail, project oriented.
Mortgage Lender Interview
For advice on how to begin a mortgage lender career, Read More from a Business Lender…
Mortgage Lender Careers: Salary Expectations
The average salary for all loan officers, of which a mortgage lender is a specific type, is $54,700 a year, with the middle fifty percent earning between $39,710 and $76,860. Depending on the institution, pay can consist of salary only or some combination of salary and commissions based on the number of mortgages a lender originates.
Thus, with more experience and better skills, some mortgage lenders stand to increase their earnings over the course of their careers. Mortgage lenders should be aware, however, that because their jobs are tied closely to the housing market, which itself is tied closely to the economy, some years may leaner or stronger than others.
Mortgage Lender Careers: Job Outlook
The job outlook for mortgage lenders in the coming years is mixed. The internet has made it easier for consumers to find their own loans, therefore bypassing the need for a mortgage lender to help them. Yet many people still appreciate a human touch and new mortgage lenders will be needed to replace those who retire or leave the industry.
According to the Bureau of Labor Statistics, the field is expected to expand by 10% by 2018.
Those with Bachelor’s degrees and/or strong experience with banking and lender will be in the best position to find work. Potential mortgage lenders should be aware that because their work depends so much on the economy, some years will be leaner than others. Those who can weather such times or who can switch gears and become loan collectors will do the best in the long run.
Slightly off the Footpath
Source: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2010-11 Edition, Psychologists, on the Internet at http://bls.gov/oco/ocos018.htm (visited November 8, 2011).
