Ravi Chandran
Are you wondering what a mortgage broker job consists of? Working in this field requires extensive knowledge about the process of financing real estate as well as customer service and sales skills.
By: Phoenix Lee/
Understanding a Mortgage Broker Job
Table of Contents
Mortgage brokers work with clients who are interested in borrowing money to purchase real estate or who are seeking opportunities to refinance property that they already own. Brokers function as intermediaries between lenders and consumers who are seeking real estate financing.
Marketing
Marketing is an important part of what the job of a mortgage broker consists of. Because brokers work on commission, building a clientele is an essential component of success in this business. Successful brokers spend a good bit of time marketing their services directly to prospective home buyers and building relationships with Realtors and home builders who may be in a position to refer clients to them.
Some brokers offer free credit classes and home buyers seminars as a community service and as a means of building relationships with individuals who are looking to purchase real estate. Additionally, many brokers become involved in a variety of business networking groups, as a way of build their businesses. Successful brokers also keep in touch with past clients, recognising that satisfied customers are often the best resource for referring new business and that people often seek multiple mortgage loans throughout their lifetimes.
Mortgage Broker Job Involves Providing Information to Consumers
Because brokers are able to represent multiple lenders, they are able to work with clients to find the best financing option for their particular situation. When meeting with an individual who is interested in taking out a mortgage loan, mortgage brokers are responsible for providing information about the various types of loan programs that are available based on relevant factors including, but not limited to:
- The individuals credit history
- Down payment availability
- Property location and value
Mortgage brokers also educate customers about what to expect throughout the loan process, including details about guidelines for loan programs, interest rates, and the fees and expenses associated with taking out a mortgage loan. It’s important to provide prospective customers with all of the facts necessary so they can make a wise decision regarding the best real estate financing option to pursue.
Loan Processing
Once a client has decided to apply for a mortgage loan, the broker will work closely with the individuals to secure all documentation necessary to complete the financing process. This starts with the process of getting the client started with completing the initial mortgage application to securing information needed to prepare for closing through the actual closing process. Brokers provide their clients with a list of the information that will be needed in order for the lender to give preliminary approval for the loan, then often work closely with the real estate and closing agents to ensure that the survey, appraisal, inspection, title search, and other important details are handled in a timely manner.
Becoming a Mortgage Broker
How to become a Mortgage Broker? Can this be a good career choice? A mortgage banker is employed by the bank where you draw a fixed salary, on top of that, still earn commission on sales. It is easily the best of both worlds of safety in fixed salary with bonus upside. Bankers also tend to acquire enquiries much more easily because of the bank you work for.
A mortgage broker however is like an “out-sourced” banker. In this case, the mortgage broker needs to build a relationship and sign contracts with all the banks for home loan referral. There are also many administrative tasks that a Mortgage broker has to endure.
Updating and Maintaining Mortgage Rates
Mortgage brokers have to update 100s of housing loan packages consistently. Updating and maintaining loan packages takes up easily 50% to 60% of a Mortgage broker’s time.
Update Latest Forms and Paperwork
Making sure that the various application forms and declaration forms are up to date. There are some 70 to 100+ forms from various banks. A wrong form used will mean a wasted trip and extra costs. Banks change these forms without giving notice, hence it is very often a broker gets caught off guard.
Acquire Customers and Enquiries
Many bankers often feel that they are hampered by their bank’s packages being not attractive enough and hence their bonuses are impacted. Hence the thinking that it is easier to become a Mortgage broker as a broker can offer packages from all the banks. While being able to offer a vast choice of packages is true, but acquiring customers and enquiries is a totally different story.
Customer acquisition is very costly for the mortgage broker, while the cost of customer acquisition is equally costly for the bank, the cost of acquiring enquiries for bankers is relatively easy and at less cost to the bankers. Bankers go out to drink and entertain to build channel relationships to bring in the loan deals. Mortgage brokers do not focus on channels but rather on individual customers, so the drinking in pubs and entertainment is out.
The requirements for working as a mortgage broker vary from one company to another. Most real estate financing companies require individuals who work in this occupation to be knowledgeable and to engage in continuing education activities in order to do the mortgage broker job well. The rules for mortgage broker job are typically different than those that apply to individuals who work as loan officers in banks.
