Mortgage Broker

What is a Mortgage Broker?

The following job responsibilities are common for individuals in mortgage broker roles:

• Market services within a community to attract new customers
• Review borrower finances, debts, and credit to determine the types of mortgages borrowers qualify for
• Investigate the different mortgage loans available to find the best interest rate and terms
• Assist borrowers with completing paperwork and collecting documents for loan application
• Submit mortgage applications to banks for approval

A Day in the Life

Buying a home can be a stressful event, so some aspiring homeowners turn to mortgage brokers to assist with the mortgage selection and application processes. Mortgage brokers have relationships with banks that allow brokers to submit applications on behalf of borrowers. If the application is approved, the mortgage broker receives a commission for the referral. And while mortgage brokers are typically paid by banks and not clients, assisting clients with the mortgage process is their primary responsibility.

When taking on a new client, the mortgage broker collects documentation and reviews borrower finances, debts, credit scores, and credit histories. In some cases, the mortgage broker may recommend that the borrower perform certain tasks to raise his/her credit score before applying for a mortgage in order to qualify for better loan terms. Once the borrower’s finances and credit are all sound, the mortgage broker begins searching mortgage lenders for the best possible loan terms for the borrower.

Once the mortgage broker has presented options to clients and agreed on a bank, the mortgage broker assists the borrower with applying for the loan. The mortgage broker collects all forms and documents and submits them to the bank. When the bank needs more information, the mortgage broker collects additional materials from the client and submits those as well. Once the loan has been approved and the client purchases a home, the mortgage broker receives a referral commission from the bank.

Typical Work Schedule

Mortgage brokers have a flexible working schedule that usually depends on closing the deal with the client rather than specific working hours. While many loan officers usually work in offices, mortgage brokers on the other hand often work outside the office because they have to meet clients at their homes or businesses. Mortgage brokers usually work with multiple clients at the same time and can only be paid once the loan closes which forces them to work with each borrower on a more personal level as well as to connect with multiple lenders. All of this can be time consuming and often requires working on evenings and weekends to be able to meet the client’s requirements. Accordingly, this job should not be your choice if you are looking for life-work balance but it still a financially rewarding career.

Projected job growth

There are currently more than 53,000 mortgage brokerage companies in the US employing more than 418,000 brokers. According to the US Bureau of Labor Statistics, the demand for various loan officers and brokers including mortgage brokers is expected to increase by 3% between 2019 to 2029. This is about as fast as the average growth for all other occupations. The job of the brokers will continuously be needed to correctly evaluate the creditworthiness of various applicants and to determine the likelihood that loans will be paid back in full and on time. In order to have better job opportunities and to advance in your career, you should have enough experience with lending, banking, and sales. In addition, some firms require brokers to find their own clients and even the lenders so having established contacts and a referral network to work with should increase your chances and give you an edge over the competition.

Typical Employers

For a mortgage broker, the best working environment may be to work independently which will provide you with better profits, however this requires you having enough experience as well as an effective network to function properly. Therefore, some mortgage brokers prefer to work for larger mortgage brokerage firms as Wells Fargo, Quicken Loans, JPMorgan Chase and Bank of America. They can start working there to gain experience and build networks before moving on to independent business.