How to Become a Loan Officer With No Experience?

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Becoming a loan officer right now is a really hot topic in the market. There are many decent opportunities popping up in the market for new loan officers. This is a job that is getting in great demand right now.

become a loan officer

A huge amount of interest can be seen among the people to become loan officers, many people want to do this job as the unlimited potential earnings this has.

Most people are getting attracted to its flexibility of work life.

One can easily create his / her own schedule and this job can also be done as work from home.

With the job of a loan officer, you can create an impact as in a way where you are helping out many families and people who are in need.

You also create an impact on the economy by providing people with loans and making them able to buy their houses, and car or can also invest in real estate or to be able to finance their child’s education.

Becoming a loan officer can be a financial breakthrough for you with a lot more flexible schedule.

With proper guidance and knowledge, you can also become a loan officer in less than 30 days, and get licensed too.

What is a Mortgage Loan Officer?

To complete a mortgage transaction or recommend approval of loan applications for the borrower or businesses, that licensed individual or institution is known as a Loan Officer.

In mortgage companies, commercial banks, related financial institutions, or credit unions, most of these Loan Officers are getting employed.

So basically, being a loan officer you are making people able to buy their house, and car or can also invest in real estate, or to be able to finance their child’s education.

How to get Licensed as a Loan officer?

To operate as a loan officer, it is necessary that you get licensed, otherwise, you will not be able to become an officially licensed officer, and also you can not get paid for the same reason.

The sooner you get licensed, the sooner you can actually become a loan officer and get paid a good amount as a loan officer.

And if you are already a licensed loan officer and willing to get licensed in another state, then this is a great time to get the branch out to other states also as a loan officer. There you will be able to help more borrowers and can make more money.

Steps to get licensed as a loan officer :

  • You have to register with the NMLS ( account and ID )
  • Find an approved provider for Pre-license education
  • Complete the specific education requirements of the state in which you are applying to get licensed. (there are different requirements in different states )
  • Then obviously you have to pass the national exam
  • After that, you will have to apply for licensure through the NMLS.

What is NMLS?

NMLS is a database that stores the whole information about all loan officers, their licenses, and all other companies providing loans, their documents and requirements, everything.

Everything about loan officers is stored in this database called NMLS, every loan officer there has a unique ID number registered on this database, which is the first step of getting licensed.

Steps to register on NMLS :

  • Go to the official website
  • Click on the state, in which you want to apply for your licensure.
  • Click on the state agency you are licensing through.
  • Scroll down to the bottom, where it says NMLS license.
  • Click on New Application on the right side to find the requirements.
  • Check your education requirements ( there are different requirements in different states )

What are the Education Requirements for a Loan Officer?

NMLS-approved, pre-license education of a minimum of 20 hours is required by all states. Most of the time, state-specific elective hours are also required addition by many states.

State requirements can be verified with the reference of NMLS’s state-specific education chart.

For a new mortgage loan officer, the Safe Act outlines the minimum pre-license education as follows:

  • 3 hours of federal laws and regulations
  • 3 hours of ethics and fraud
  • 2 hours of lending standards related to non-traditional mortgage
  • 12 hours of undefined instructions on mortgage origination products

How is the course structured?

20 hours of online course content :

  • Chapter 1:   Becoming a Mortgage Loan Officer
  • Chapter 2:    Learning the products and the programs
  • Chapter 3:    Initial Application
  • Chapter 4:    Processing And Underwriting
  • Chapter 5:    Closing  and Funding
  • Chapter 6:    Mortgage Ethics

Each chapter has several sections.

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Find an Approved provider for Pre-license Education

You can find these approved, pre-license educators and providers online on different websites or apps at your convenience.

National Exam for Loan Officer

For state licensure, regardless of which state you are from or which state you are applying to, you have to pass this national exam for the mortgage loan officer.

You do not have to take the exam if you already have taken this test after 2014 but if you took this test before 2014 then definitely you have re-appear and take the exam again.

Test Breakdown :

  • There are 125 questions in the national exam for the loan officers.
  • You will be scored on 115 questions.
  • You have to pass this national exam with a 75% or higher score.

National exam for Mortgage Loan Officer format :

Content AreaPercentage of Test
  Federal Mortgage related laws    23%
  General Mortgage Knowledge    23%
  Mortgage Loan Origination Activities                   25%
  Ethics    16%
  Uniform State Content    13%

Example states: FL, TX, AL, LA, and MS

You must pass this test in your first attempt in order to get licensed within 30 days.

Applying for Loan Officer Licensure

After you pass the national exam for mortgage loan officer then you have to apply to get licensed as a loan officer.

Application for a Loan Officer Licenses varies from state to state to which you are applying.

There are some common steps and formalities that are included in every state’s applications for a Loan Officer’s License, which are as follows :

  • Criminal Background Check
  • Credit Check and Identity Verification
  • Company Sponsorship
  • Disclosure Questions ( these can be about: money laundering, felony charges, conflicts of interest, fraud charges, and so on )

And yeah…..

After going through all of these checkpoints, your Loan Officer License will be approved, and you will be an officially verified Mortgage Loan officer now.

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