How to Become a Money Broker for Loans

Another term for a money broker for loans is a mortgage broker or mortgage originator. A money broker for loans acts as a matchmaker between borrowers looking to finance the purchase of a home with the lenders who are willing to loan money on the property. If you are interested in getting into the loan business or have experience working in the banking, real estate or mortgage industry, then working as a money broker for loans may be of interest to you. If you have contacts or experience in real estate and lending money brokering, it can be a lucrative career for you.

Difficulty:

Moderately Challenging

Instructions

Things You'll Need

• High school diploma
• Bachelor's degree or experience in real estate, finance and/or banking
• Experience in customer service or working with consumers

1. Acquire industry experience. The majority of money brokers for loans gain experience in the industry by working as a bank teller, loan processing assistant or a customer service representative in a bank or financial institution. Work in one of these positions to gain industry experience and learn about mortgage and lending products.

2. Learn the ins and outs of the Federal Housing Administration (FHA). The Federal Housing Administration is one of the main resources of information in order to learn everything you need to know about mortgages and mortgage lending. Read and review the information provided by the FHA to become a mortgage origination and processing expert. Studying the FHA requirements for mortgage lending and loan details can help you build a solid foundation of mortgage and lending knowledge.

3. Learn the real estate market and make real estate contacts in your lending area. Referral sources such as real estate agents are one of the main sources of repeat business for money brokers for loans. Identify the top selling real estate agents in the area you serve and schedule meetings with them to learn how you may be able to work together. The real estate agents can help you quickly get up to speed on what's going on in the local real estate market and you can be a source for the agent to refer clients in order to obtain the financing the buyers need to buy a home.

4. Obtain a certification. Becoming a certified mortgage originator helps to build your credibility with potential referral sources and borrowers. Contact the local chapter of the Mortgage Bankers Association (MBA) to find out when the next certification course takes place and what you have to do to register for it.

Tips & Warnings

• Most lenders do not require money brokers for loans to have a bachelor's degree, but lenders typically prefer that they have a college degree. Some lending institutions substitute banking and lending experience for a college degree.

References

• My Small Biz: Mortgage Broker