The broker plays an important role when the potential home buyers look for a first mortgage loan to buy a house. The broker’s role is to obtain required information from the home buyer like income, assets as well as liabilities in order to determine whether he/she is capable of qualifying for a home loan. The mortgage broker may explore various options available for financing for the potential buyers. Therefore, an individual needs professional training and requires proper educational background in order to operate the task of a mortgage broker.
What is the educational requirement of a mortgage broker?
Get training for pre-licensing:
A few states in the US require the mortgage brokers to complete pre-licensing education in order to qualify for the mortgage broker's examination. The course of the training includes federal and state regulations, privacy laws, lending rules, property appraisals, and income documentation and qualification for buyers. Pre-licensing education for mortgage brokers is required in states like Florida, Indiana, Georgia, Kentucky, Louisiana and Illinois.
Graduation requirement for the brokers:
The mortgage brokers are compelled by the state to have experience in the field of real estate lending. In order to work with a renowned lending institution, the aspirant brokers need to complete his/her graduation. You can qualify for entry level loan officer if you only have a high school degree. Students can pursue graduation in finance or economic if they are interested in commercial lending. Therefore, in order to qualify for a mortgage broker’s license you need to complete a four year bachelor’s degree. In California, an individual can qualify for a mortgage broker’s license after completing a four-year degree and need to have two years’ experience in the industry in order to take the broker's examination.
Benefits of business education for independent brokers:
If you’re planning to work as an independent mortgage broker, then education in business can be good option for you. You need additional business education if you’re planning to practice as a commercial mortgage broker. An aspiring broker can get significant training to run as well as successfully promote his business and polish his/her analytical skills. The syllabus for bachelors in business administration degree course incorporates bank management, real estate management, financial statement analysis, real estate finance and entrepreneurial finance.
Complete information on the course:
Accounting, financial analysis and business regulations are part of the courses in a degree program. Remember, duration of the mortgage broker's pre-licensing education training varies from state to state. In Georgia, you may have 40-hours pre-licensing training course and Indiana the length of the training is 24-hour in order to qualify for a state broker license.
Therefore, you need to keep the above mentioned education requirements in mind to practice as a licensed mortgage broker in your state.