If you’ve llan on the sales floor for any amount of time, you’ve noticed we have a way with words. We can cuss like sailors and we can bless like saints. When most people hear the word «pitch,» they imagine someone robbing their time, not letting them go and suffering through listening to someone who won’t STFU. Sadly, most salespeople blow sales pitches worse than Chipotle makes you blow up a toilet. A sales pitch is Ever have the itch to go full on into a commission-only sales job? Maybe you’re reading this, remembering when you made the plunge.
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)}Or happen to be a financial advisor or a pro athlete. Not so — the prospect of being a mondy officer has changed conventional thought, especially as the housing market shot off in recent years like a bottle rocket. So officed as we lie in the wake of the housing bubble bust, are loan officers still making money? The answer is a resounding YES, but the number of loan officers has probably been cut in half, if not more in the past few years or so. It seems most of the smart money already refinancedor made home purchases before values went up. But there are a number of questions you need to ask yourself before setting out in the mortgage industry as a loan officer. First and foremost, it is not an easy job. And yes, you may not have to work very hard in the traditional sense, or take part in any back-breaking work. You will see deals fall through and you will waste a lot of time. You will have mental breakdowns as loans slip through your fingers, and brokers and real estate agents scream at you as deadlines close in. It will be embarrassing and unpleasant. But if you can handle all that, being a loan officer can be quite lucrative, and fairly easy if you get yourself organized and educated on mortgages and the many loan options available to homeowners. But once you get a taste of the money you may have trouble walking away, no matter how high the stress and quality of your life. First off, a loan officer may be referred to as a mortgage planner, lending officer, Oofficer, mortgage specialist, dedicated lending associate, loan consultant, loan agent, mortgage professional, senior of any of these, or junior of any of. There are lots of creative names for the position depending on the company in question, but the job description will likely be the same regardless.⓬
How Much Do Mortgage Lenders Make From Your Loan?
The typical origination fee , one percent of the balance, can come to thousands of dollars. There may be risk-based surcharges for those with low credit scores, small down payments, or riskier properties like high-rise condos or manufactured homes. In addition, there are usually expenses for third party services like home appraisals, title insurance, escrow officers and home inspection. Banks, brokerages and non-bank originators implemented new procedures and hired more personnel to comply with new rules. Debra Still, President of Pulte Mortgage, claimed in a recent presentation that in , the average loan file had pages. Now, the average mortgage file book? By the end of , dealing with increased regulation, personnel costs, and loan buy-backs foreclosures, etc. There is definitely money on the table when you shop for a home loan. Some receive a flat salary, but most are paid on commission.
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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 yourself. 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.
Mortgage Lender Costs
Loan Officers rank 15 in Best Business Jobs. Jobs are ranked according to their ability to offer an elusive mix of factors. Read more about how we rank the best jobs. Average Americans work well into their 60s, so workers might as well have a job that’s enjoyable and a career that’s fulfilling. A job with a low stress level, good work-life balance and solid prospects to improve, get promoted and earn a higher salary would make many employees happy. Here’s how Loan Officers job satisfaction is rated in terms of upward mobility, stress level and flexibility.
Opportunities for advancements and salary. Work environment and complexities of the job’s responsibilities. Alternative working schedule and work life balance. Jada A. Graves is the Careers product manager at U. You can follow her on Twitter jada Read. Sign Up for Job Alerts. What is a Loan Officer? Loan officers advise, evaluate and authorize loans to people and businesses.
Financing a college education, buying a new car and purchasing a home for your family are among the dreams loan officers help you achieve. Loan officers are often part of the supporting cast that helps finance the milestones in our lives. Frank Donnelly, former president of the Mortgage Bankers Association of Metropolitan Washington, recalls one loan settlement he’ll always remember. And she said it was because she wanted to show her son how important it was to buy a house.
When you do this day in and day out, you can sometimes forget about what a big z this is to people. The profession involves a lot of paperwork and managing logistics, and it also requires extraordinary interpersonal skills. Borrowing money can be a nerve-wracking experience, and a loan officer should make his or her clients feel at ease during the process while still educating them on their decision. Economic growth, population growth and low interest rates all create demand for loans and employment opportunities for loan officers.
However, the growing mony of loan underwriting software, which automatically underwrites loans online, could temper some of the job growth. The Mske of Labor Statistics projects 7. In that period, an estimated 24, jobs should open up. How We Rank Jobs. Loan officers typically need at least a bachelor’s degree, preferably in a business-related field such as finance, economics or accounting.
Mortgage loan officers need a mortgage loan originator license, which requires passing an exam, at least 20 hours of coursework and makee and credit checks. Additional training takes place on the job. Upward Mobility. Stress Level. Above Average. Graves Jada A. Previous: Job Listings. Next: Salary.
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)}It is awfully nice of lenders to be offering free loans. Have you ever wondered how lenders can do this? If they are not charging you, the money has to come from. It helps to clear things up when you understand how a loan officer makes their money. You can pay these fees out-of-pocket when you sign the papers, or incorporate them into the loan. If a loan officer makes money on the back, makw means money is being received from the bank as a sort of commission for filing the loan. This is the money you do not see. When lenders claim to be giving you a «no out-of-pocket» or «no-fee» loan, they are still making money, but they are charging it on «the. So isn’t that better for you? Not necessarily. Although the bank is paying the loan officer a commission now, the money is really coming from you, the borrower—in the form of a higher interest rate. Lenders that are not charging mpney on the front can be charging a higher rate to make up for lost fees. In fact, the lending institution could be making a lot more money this way as they are getting a higher rate of interest for possibly 30 years or. How do you compare loans to be sure which deal is the best for you?⓬
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