7 Ways To Succeed As A Mortgage Broker
A career as a mortgage broker can be as difficult as it is rewarding. Success as a mortgage broker depends on strict legal compliance, good relationships with clients and financial institutions, and your own commitment to continuous improvement.
With that in mind, here are seven ways that can help you be successful as a mortgage broker and build trust between you and your clients.
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1. Observe full legal compliance
As a mortgage broker, you are the financial intermediary between home buyers and potential lenders like banks and wholesale mortgage lenders. As such, you must comply with federal rules and your state’s licensing requirements.
For example, you must take a written qualifying exam and submit your fingerprints for a background investigation under the Secure and Fair Mortgage Licensing Act (SAFE).
Requirements include your mortgage security contract and proof of continuing education. Visit the National Mortgage Licensing System (NMLS) resource center for reference.
2. Always be prepared to offer several options.
Clients have different housing needs and specific financial situations. You should be able to answer their questions, explain the different types of loans, and come up with options based on their income and debt.
Perhaps they have access to a VA loan, or they may be eligible for government assistance. Either way, you need to do your research and qualify potential clients for several mortgage options.
Run the numbers and try to match customers with the best products based on their credit scores and housing needs. Don’t push for a particular option, but rather provide in-depth advice – and allow them to make the final decision.
Read more: 7 questions asked by first-time homebuyers that every broker should answer
3. Be transparent about brokerage fees and closing costs
Learn how to manage customer expectations and handle difficult conversations. After all, borrowing a huge amount of money can be terrifying, and not everyone will be happy with the options you offer.
Make things less intimidating for your customers by sticking to the facts and presenting all the essential information they need. It helps to speak in a professional, calm and reassuring tone.
Most importantly, you must remember to fully disclose any charges that may impact your buyer. Transparency is essential to build a positive and lasting relationship with customers and to comply with the Dodd-Frank Act.
For example, talk about closing costs up front and why these can be around 3% to 5% of the total loan amount.
Provide a full breakdown of fees related to closing a real estate transaction and fees related to loan creation, appraisal and investigation, property tax and title insurance.
4. Continue to participate in workshops and courses
Mortgage brokers must complete at least eight hours of continuing education in the same year of obtaining approved license status. These hours should include courses in ethics, federal law, non-traditional mortgage lending, and an optional course that the state may require.
Additionally, under the SAFE Act, you must meet mandatory federal education requirements for license renewal. You can review the NMLS Resource Center and state-specific required training charts for more details.
Additionally, you should take the time to attend industry workshops and electives. These will help you stay on top of business best practices, the latest trends and compliance standards.
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5. Show proof of your success
Easing the minds of your busy clients is an essential part of your job as a mortgage broker. Build their confidence in you by providing testimonials from past clients and letting them know about your qualifications.
Display your accolades and certifications in your office. You can also use your website or LinkedIn profile to generate mortgage leads and showcase your accomplishments. Gather written recommendations from your connections, especially previous clients, and post them on your page.
6. Promote yourself and maintain your network
Remembering the personal details of your customers can be very helpful. Making them feel you care will make them feel more comfortable. Don’t forget your old customers, either. If you’ve helped them satisfactorily, they’ll likely come to you when it comes time to renew their mortgage term.
Equally important is building relationships with financial institutions and real estate brokers. Go online, polish your profile, and reach out to potential contacts.
To be successful, “brokers must be able to market themselves and work as freelancers,” says Kimber White, president of the National Mortgage Brokers Association (NAMB).
“It’s one thing to do a big volume on refis and leads generated by your company’s marketing department, it’s another to develop a large community network and the means to generate leads on your own. “
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7. Build your resilience in the face of rejection
Resilience and passion are underrated qualities of successful mortgage brokers. You will experience rejection and anxiety many times, especially if you are just starting out. Maintaining a professional mindset and not accepting rejection personally is essential for the job.
“On a daily basis, you will be faced with rejection from potential clients, banks and even lawyers and real estate agents as you try to fix the problem,” says Otto Dargan, founder of Home Loan Experts (AU). “Sometimes it’s just about accepting your defeats and getting on with it.”