So, You Want to Be a Mortgage Broker

What will I be doing all day?

A mortgage broker acts as an intermediary between real estate buyers and lending financial institutions. Mortgage brokers research and compare the various lending terms, including interest rates and closing costs, that are being offered by lending institutions and present those to the buyers, advising them about their different options as well as the legalities associated with repayment of the loan.
From the buyer’s end, they evaluate the buyer’s eligibility for a loan, based on his financial standing, credit history, and current employment. Once the loan is agreed upon from both ends, the broker completes all the necessary closing paperwork with the lender, title agency, insurance broker, and any other relevant party.

What kind of schooling do I need?

No specific degree is required to become a mortgage broker. A bachelor’s degree in business administration, finance, or accounting can be helpful in expanding job opportunities, but not necessary. The main training for this career is on the job.
In order to practice in the US, a mortgage broker needs to be licensed, which requires completing continuing education courses. License requirements vary by state.

What can I expect to earn?

Most salaries in the mortgage field are commission-based, although in larger companies, they’ll often offer a base salary as well.
Average base salary in the US is $95,385 plus $52,000 in annual commissions.
Commercial mortgage salaries average at about $120,000 plus commissions.
Income rises considerably with experience; a first-year broker will make $50–60,000, and with three years’ experience, $150–250,000.
Note that in higher cost-of-living locales like New York City, the salaries and commissions can be significantly higher.

Do I have the personality for it?

A good mortgage broker should have excellent communication and customer service skills. He should be a good negotiator, detail-oriented, adept at gathering, crunching, and analyzing financial numbers and statistics, and be able to explain complicated ideas in easy-to-understand language.