Mortgage Loan Originating: Do You Have What It Takes?

Blog, Mortgage Lending

Mortgage Loan Originating

A mortgage loan originator is a role that’s not for the faint of heart. You have to balance the interests of the borrower with those of the lender, be up to date on federal and state regulations concerning mortgages, underwrite the loans and have impeccable people skills.

The right person will thrive in this environment and face new challenges every day. Whether you’re finding the right lender for a particular case borrower or adapting to new rules instituted by the lender, you’ll always have an exciting day in the office.

Characteristics of a Loan Originator

Here are a few characteristics that will serve you well as a mortgage loan originator.

  • Salesmanship: A sales background is an excellent characteristic to have in this position. You may need to leverage these abilities to get a lender to accept an unconventional applicant or steer a borrower to a different type of mortgage than the one they originally wanted.
  • Relationship building: Your relationships with the borrowers and the lenders are critical to your success. You want everyone to walk away with a good experience, whenever possible, as they can refer more business your way. When you have a strong working relationship with lenders, you often have access to resources that other loan originators don’t.
  • Analytical: Your loan application evaluation process relies on an objective and analytical approach. The goal is to get the borrower into a loan that works for their financial situation and ensure that the lender gets paid back.
  • Flexible: You never know what you’re going to deal with on a daily basis. Be prepared for the unexpected.
  • Financial knowledge: It goes without saying that you need to know a lot about finance and credit to succeed in this role. You should have a bachelor’s degree in a relevant field, along with experience working at a financial institution.
  • Real estate knowledge: Real estate buyers often have a lot of questions during the process that may not technically fall under your responsibility. While you can refer them back to their real estate agent for the answers, being able to give them the information directly results in a better overall experience.

Challenges of Mortgage Loan Origination

Before you throw yourself headfirst into the mortgage loan origination position, be aware of the challenges facing you on this path.

Tied to the Housing Market

The housing market dictates the opportunities available to you as a loan originator. A healthy housing market gives you a steady workload and plenty of prospects coming in regularly. When the interest rates start to creep up, you could end up in a situation where you hit a dry spell.

You also face pressure from digital lenders that capture borrowers who would otherwise go to a traditional financial institution. They handle the entire process, so you don’t have the opportunity to get that lead.

Adapting to Commission-Only Pay

Many loan origination positions are commission-only. If you’re used to a salary or an hourly wage, you have a big lifestyle adjustment to make. The ebb and flow of your income can make it difficult to stay on top of bills and other expenses. Have a plan in place for managing your finances and predicting the take-home pay each month.

When you’re looking for a job in the financial industry that really pushes you to perform at a high-level, mortgage loan origination is the perfect place to be. You need a versatile skill set and the ability to overcome the roadblocks you encounter on the way. Loan officer training programs, such as the one offered by Hondros, get you started on the right track with the tools you need to succeed.

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