Day in the Life of a Mortgage Loan Officer: What Is A Loan Officer And What Do They Do?
What is a Mortgage Loan Officer?
In simple terms, a mortgage loan officer, otherwise known as an MLO, helps borrowers obtain a loan for their home. They work with home buyers or those looking to refinance their mortgage by reviewing potential loan options and helping them understand the rates and terms associated with each. Typically, a mortgage loan officer is the expert advisor who works on behalf of a borrower with a mortgage lender throughout the home loan process, from initial application through closing – and often, beyond.
What are the Main Responsibilities of a Mortgage Loan Officer?
An MLO wears a lot of hats. From cultivating new business to giving continuous guidance to borrowers throughout the loan process, there’s never really a dull moment in this profession. While no day is ever the same, here are a few things you can expect to be doing on a daily basis.
1. Networking, networking, networking
MLO’s are relationship-driven. Having a business referral network is imperative. From cold calling to attending events, to developing marketing strategies, they are always looking for ways to get more borrowers in the door. It’s primarily the responsibility of an MLO to consistently be generating new clients and referrals.
It’s also beneficial to have an outgoing personality since you’ll likely be able to better connect with future borrowers, real estate partners and other professionals in your community – and enjoy building and maintaining those relationships.
2. Loan Applications
As an MLO, you’ll be responsible for helping borrowers determine which mortgage loan is right for each person and their individual situation. This includes obtaining, compiling and going over financial data such as credit scores and debt-to-income ratios. As you can imagine, this means you’ll need to be organized, detail-oriented and knowledgeable about the ever-changing regulations and latest trends in the mortgage and real estate industries.
The goal is to help your clients determine what they can realistically afford. Reviewing agreements, explaining the ins and outs of loan programs and negotiating loans and terms are all tasks you’ll encounter. In addition, coordinating and communicating seamlessly with other professionals who play a role in the loan process, including real estate agents, underwriters, and appraisers, as well as title and insurance companies, will be integral to your success.
3. Borrower Guidance
It’s no secret the mortgage loan process is complex. As an MLO, you’ll need to be available to help guide your client through the entire process, no matter the time or day of the week – and hopefully, they will continue reaching out to you for years to come.
For example, a client may contact you in the future for refinance questions or if they’re purchasing a new home, or even if they run into issues paying their mortgage. As an MLO, you should be their first point of contact for any questions or concerns regarding their mortgage.
This goes back to the importance of building relationships – you will want to do whatever you can to ensure your clients think of you as their go-to advisor, whether it’s during their first home loan process or for something they need five years down the line.
How Do You Become a Mortgage Loan Officer?
Requirements can vary by state, but in general, MLO’s are required to get a mortgage loan originator license, which requires a minimum of 20 hours of coursework, as well as passing a background check, credit check and an exam. There are also yearly renewal requirements for licensing.
Are you ready to jump-start your career in the mortgage industry? Our team at BeAMortgageBroker.com is here to help you every step of the way.