How to Become a Loan Broker for Free

If you are motivated by money, a career in lending might be for you.

Professionals in the consumer-lending field can make scads of money. The most successful loan brokers are both assertive and kind, and they are relentlessly aggressive when it comes to securing new business and clients. Most brokers charge a fee (usually a percentage of the loan) on each loan. Therefore, the more loans closed, the more the broker earns. You, too, can be a broker. And you can do it for free and even without an undergraduate degree.

Instructions

1. Read up on lending laws. There are laws that are important to understand when it comes to home mortgage and consumer lending. The Home Mortgage Disclosure Act tracks applicants' race and national origin to prevent discriminatory lending practices; the Fair Credit Reporting Law controls who can and cannot access credit files; and the Real Estate Settlement Procedures Act requires certain disclosures about rates, fees and terms.

2. Attend career fairs in your local area where lending companies will be represented. You are not necessarily looking for a loan broker job yet--instead you simply want to make some connections with local companies. Collect many business cards.

3. Cold call these companies after a week or so and ask about internship opportunities. Express your eagerness to learn the business and your willingness to work for free. Call as many lenders as there are in your local area. Do not quit until you have secured interviews and, ultimately, an internship.

4. Work closely with all brokers in the lending company. Each loan officer has a different style. It's helpful to learn various solicitation and sales techniques. This will help you hone your own personal style. Sit in on sales presentations and even lead a few once you are comfortable with the programs and rates.

5. Watch several loans go through the entire process--from the initial solicitation, to the sales presentation, to application, to underwriting, to closing and finally to funding. It is crucial to understand how a loan flows through a loan company.

6. Spend time with loan managers after you have been at the company for a few weeks. Management skills are very valuable assets when you start looking for positions in the lending field. Learn about managing loan officers (who are often very gregarious and prone to distraction), marketing strategies and staying on budget.

7. Ask for a job at the same company when your internship expires. If you have done a good job, do not be surprised if a position is offered to you before you ask. The field often experiences significant turnover.

8. Apply at lending offices all over your area. Make sure to get recommendations from loan officers and managers from the company where you interned.

References

• U.S. Bureau of Labor Statistics: Loan Officers
• U.S. Bureau of Labor Statistics: Duties of a Loan Officer
• The Truth About Mortgage: Loan Officer Job Description