These days finding a way to keep a competitive edge never hurts. And for people working in the real estate industry, becoming both a licensed mortgage broker and a licensed real estate agent can be appealing. So, can you be a mortgage broker and a real estate agent? The short answer is yes, you. However, there are some regulations that you should be aware of if this is something you are considering. Real estate agents are licensed individuals who represent home buyers and home sellers. They also have a strong knowledge of the geographical location where they buy or sell properties, the pros and cons of living bgoker each part of town, knowledge of the local school districts, and a strong overall background in the real estate field.
Trending News
⓫-10 -(
)}A mortgage broker acts as a middleman between you and potential lenders. Mortgage brokers have a well-developed stable of lenders they work with, which can make your life easier. Mortgage brokers are licensed and regulated financial professionals. Mortgage brokers are licensed financial professionals. They gather documents, pull your credit history, verify income and apply for loans on your behalf. Mortgage brokers are most often paid by lenders, sometimes by borrowers, but never both, says Rick Bettencourt, president of the National Association of Mortgage Brokers. You can also choose to pay the broker. But you need to do your due diligence [and shop around]. The competitiveness — and home prices — in your local market will have a hand in dictating what brokers charge. In the other direction, though, federal law limits how high compensation can go. That restriction was put into the financial regulation law as a result of the predatory lending that triggered the housing crash. Loan officers are employees of a lender and are paid a set salary plus bonuses for writing loans for that lender. A mortgage broker applies for loans with different lenders on your behalf, shops for competitive mortgage rates and negotiates terms. A mortgage broker can save you the hassle of managing that process. Then, take the Loan Estimate you receive from each lender, place them side by side and compare your interest rate and all of the fees and closing costs. Another referral source: your real estate agent. Ask your agent for the names of a few brokers that he or she has worked with and trusts. At NerdWallet, we strive to help you make financial decisions with confidence.⓬
Responsibilities of Mortgage Brokers vs. Real Estate Agents
During the homebuying process, there are typically two professionals who will assist you through it: a real estate agent and a loan officer. Most people are familiar with real estate agents, but loan officers are less well-known—especially to first-time homebuyers. So, who are these individuals and how should you expect to utilize their services? While there are some similarities between a real estate agent and a loan officer, such as state oversight and licensing, there are many differences between these professional roles. In a nutshell, real estate agents focus on the buying and selling of property while loan officers deal with the financial side of obtaining a mortgage. A real estate agent can help you find the perfect home and navigate the potentially confusing waters of the homebuying process. With access to lists of properties for sale and knowledge of the local real estate market, fair price values, and other location-specific information, an agent can help guide your search. Not sure where the good schools are? An agent does!
What’s next?
A reader asks: «I am a first-time homebuyer with a long-term stable job and good credit history. I believe I’ve done everything right in my life so far, and I don’t want to mess up when it comes to buying a home. I’ve heard conflicting theories from friends. Some say I should find a lender and get preapproved before I ever talk to a real estate agent because that’s what an agent would expect me to do. Other friends say no, talk to a real estate agent first. What do you think?
Common Roles and Responsibilities of Real Estate Agents
I am a Realtor now but I am thinking about monwy the switch to the mortgage. What side has more income potential? Are you a broker that realhor your own company? If not, you are not a Realtor. Realtor is a trademark. Not everybody can legally use the term for moneg. It is important that real estate professionals understand this and protect the trademark, because if they don’t, they stand to lose the trademark protection.
Already, too many in the general public misuse the term to describe any real estate agent. You need to stop calling yourself oor if you are not. But the average loan officer in a well-run and successful brokerage earns more than the average agent. Do you want to be average? You know how much you earn in commissions. You would have to do the research moore what your commission would be as a loan officer for a mortgage on one of your sales. And that is going to vary depending on the mortgage broker you work makse.
Some officers are paid a commission split on a straight commission, just like you are. But some officers are paid a small salary, and the rest comes in the form of basis points bps on the loan — a complicated system that I don’t fully understand but that you will NEED to.
From that, you will need hroker extrapolate omney numbers. If you think you’ll be writing four loans for every one sale or sold listing as an agent, you might do better as a loan officer. I’ve been both, made more money as a loan officer, but have more fun as a Realtor! Loan officers are not expected to work nights or weekends, but you’ll have grateful customers if you.
Loan officers also don’t get out to see the houses or get to know the customers. Being a Realtor gives you a great perspective if you go to the mortgage side, plus you already know lots of Realtors who could send you mortgage business. Read makds answer. I say the same thing to you as I say to the asker. Protect the trademark! Don’t call yourself a Realtor if you are not. The loan officer will have more transactions. A very successful agent will make more than a loan officer ever.
So the answer depends. A few agents try and do both moneg that makes other agents reluctant to use them because of the fear of competition.
Trending News. Cruise line: Video shows man knew window was open. Social media onslaught after McGregor’s swift win. Florida python hunters wrestle invasive snakes. Experts share what not to do at a funeral. Duane Chapman: It’s ‘a who makes more money mortgage broker or realtor harder now without Beth’. Common not to know of your non-Hodgkin lymphoma? Boy arrested after 4 people killed in Utah shooting. Answer Save. It’s something that you will have to carefully research.
Still have questions? Get your answers by asking .
Real Estate Lawyer — Realtors vs Mortgage Brokers — 👩🏻💼 vs. 👩🏼💼
⓫-5 -(
Comparing Mortgage Brokers to Real Estate Agents
)}Realtors or Loan Officers? Some forums can only be seen by registered members. Who has it easier? Realtors or Loan Officers mortgage brokers? LO’s don’t spend a lot of their time spinning their wheels, talkng to unrealistic sellers or flaky buyers. After some period of time in the business, LO’s could develop relationships with several Realtors, that send them regular business. LO’s aren’t showing houses on Sundays; although some do sit in open houses. Loan Officers do have a lot of competition in the industry. Plus, internet originations are increasing, year by year.⓬
Comments
Post a Comment