Mortgage originators help home buyers qualify. They do this by gathering the financial information that helps loan underwriters determine if potential buyers have the fiscal capability to repay their mortgage loans. Working as a loan officer requires an ability to be both a sales man –effective mortgage originators must constantly find new customers and earn referrals from present ones–along with also a numbers person.
Loan officers can make a sizable annual income or a little one; it all depends on how many customers they property and how many referrals they can convince these customers to provide them. New loan officers have to work hard at establishing their business, while seasoned mortgage originators have to constantly remain consistent with their community of past and current customers. The Bureau of Labor Statistics states that the median salary of mortgage loan officers stood at $54,700 in May 2008.
Mortgage originators help consumers use for the mortgage loans that they'll use to pay for their new homes. To try it, originators obtain a wealth of financial information from their customers: They have to learn these clients' annual incomes and monthly debt commitments. They need to also obtain information about the debtors ' savings, financial assets and their previous, especially if they've had foreclosures or bankruptcies. Mortgage originators must also find out how long borrowers have been employed at their current job. Loan officers order credit checks of their clientele. This pulls up clients' three-digit fico scores, which lenders rely on to determine if customers are older or reckless borrowers. Originators finally pass this information to loan underwriters who determine if borrowers meet the lending institution's demands to qualify for mortgage loans. If loans are approved, the loan officer generally attends the closure. At this time, home buyers signal their final records and make any payments necessary to close the real estate marketplace. Loan officers attend in case their borrowers have some queries.
Many countries now require that loan originators obtain a permit before practicing. Individuals usually need to complete a certain number of course hours and pass an exam to earn the permit. Originators in many states have to also complete a specific number of continuing education hours each year to ensure that they keep up to date with new financing regulations. Two associations, the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, have established the Nationwide Mortgage Licensing System, an online database of state accreditation and continuing education requirements for mortgage originators (see Resources).