Although there are many people involved in the process of assisting a borrower in securing a mortgage for real estate, perhaps the most vital person in the whole mortgage lending operation is the mortgage loan originator (also known as a loan officer or mortgage broker). In this process, a mortgage loan originator is an individual who helps a borrower get a mortgage arranged. This individual is also responsible for developing business contracts, attracting borrowers, completing mortgage transactions, and supervising their own staff. Usually, the loan officer is the main bridge of communication with the borrower in the attempt to secure a mortgage for real estate. Therefore, the job of a mortgage loan originator is essential and requires a unique set of skills in order for the job to be properly carried out. Here are five benefits of becoming a mortgage loan originator:
5. The Market Is Steady and Growing
If you are considering a career in becoming a mortgage loan originator or mortgage broker, then you are in luck. Once you have obtained the necessary requirements, such as mortgage loan originator license, the loan officer job market is estimated to increase by 8% between the years of 2014 and 2024. These days, the millennials will have entered the housing market and are looking for mortgage lending deals and the baby boomers will be nearly out. This will cause an increase in the loan officer job market and a gap for the younger generation to fill. So, if you’re contemplating a career shift, now is the time to do it. Moreover, the actual need for mortgage loan originators tends to oscillate with the state of the economy. Now, nine years on from the 2008 financial crisis and the economy has started to heal, so more people are looking to purchase homes. Thus, the need for loan officers is set to further increase over the coming years.
According to a report from Black Knight Financial Services, the rate of foreclosures is continually decreasing 29% year-on-year. With this in mind once you have the necessary requirements, such as a mortgage loan originator license and other paperwork filed through the NMLS, your job is stable—without the worry and fear of getting laid off in the coming years. In any case, this perk is a substantial one in the United States where many job markets are not as promising or guaranteed.
4. There Is an Endless Amount of Perks and Benefits
Let’s break down the semantics of the job market. Since the job market for mortgage loan officers is growing substantially year by year. Since the need for loan officers is increasing, especially with baby boomers leaving the job market, a great majority of loan companies will provide numerous perks and benefits to their mortgage loan originators that go above and beyond the standard origination fee. These perks and benefits include health insurance, payment increases, sales commission, 401k, and mortgage and advertising leads.
In addition, some companies actually add on a few more specific perks for instance, some loan companies offer free gym membership, catered lunches, and extra vacation days. In actuality, the U.S. News & World Report concluded that loan officers were essentially able to establish great and comfortable lives at home and abroad. In all honesty, becoming a loan officer is downright rewarding, especially in the growing economy. With the constant demand and need for loan officers, more and more loan companies are going to extend valuable perks and benefits in order to stimulate the economy.
3. You Get a Flexible Schedule
One of the best advantages of becoming a mortgage loan originator is that you get a flexible schedule. What does that mean? You get to choose your own hours—basically whatever suits you. As a matter of fact, you can choose the time you spend in the office and time you spend working remotely. For example, a commercial loan officer is prone to spend a lot of time away from the office and more time communicating with their clients on the phone or electronically. However, most loan officers have meetings from time to time and other events on weekends and holidays. Still, more often than not, loan officers are generally able to determine their own schedule.
According to the U.S. News & World Report, loan officers are ranked as “above average” in categories such as schedule flexibility while maintaining a normal life. Ultimately, this means that many loan officers are able to distinguish a fine line between a comfortable life and work.
2. The Job Has High Pay
The pay grade for a mortgage loan originator always fluctuates from time to time. Nevertheless, the median salary for a loan officer is $41,000. This amount is fairly good for the average American, but the great part is that loan officers don’t have a set limit of how much they can earn. While the highest percentile of loan officers salaries can reach up to $120,000, the income for this job can grow much higher. For example, many loan officers are paid by an additional commission added to their base pay.
The average commission rate is 2%, so if a loan officer completes a mortgage with the amount of $250,000, they will earn $5,000. That is the amount of money some people make in a month. If a mortgage loan originator successfully completes a mortgage of $250,000 every month, they will earn approximately $48,000 a year. However, most loan officers complete anywhere from 18-25 mortgage loans a year.
1. Loan Officers Genuinely Help People
Perhaps the greatest benefit of becoming a mortgage loan originator is that you get to help people. It is every young adult’s dream to purchase their first home and by becoming a loan officer, you are bringing their dreams closer to reality. More often than not loan officers will feel rewarded knowing they are helping someone obtain something. In this sense, a mortgage loan originator has the job of helping people buy a home and make choices that will follow them for the rest of their lives.
In conclusion, there are many benefits of becoming a mortgage loan originator. However, these are not the only advantages. If you are truly interested in breaking into this great career field, go ahead and start your own research into this career. You’ll soon find out that the pros definitely outweigh the cons.