Are you wondering what the mortgage broking profession looks like?
By: Phoenix Lee/
A mortgage broker job requires extensive knowledge about the process of financing real estate as well as customer service and sales skills.
Understanding what the Mortgage Broking Profession Requires
Mortgage brokers work with clients who are interested in borrowing money to purchase real estate or who are seeking opportunities to refinance property that they already own. A mortgage broker job function requires him to work as intermediaries between lenders and consumers who are seeking real estate financing.
Marketing is an important part of what the a mortgage broker job requires. Because brokers work on commission, building a clientele is an essential component of success in this business. Successful brokers spend a good bit of time marketing their services directly to prospective home buyers and building relationships with Realtors and home builders who may be in a position to refer clients to them.
Some brokers offer free credit classes and home buyers seminars as a community service and as a means of building relationships with individuals who are looking to purchase real estate. Additionally, many brokers become involved in a variety of business networking groups as a way of build their businesses. Successful brokers also keep in touch with past clients, recognizing that satisfied customers are often the best resource for referring new business and that people often seek multiple mortgage loans throughout their lifetimes.
Mortgage Broker Job Requires Providing Information to Consumers
Because brokers are able to represent multiple lenders, they are able to work with clients to find the best financing option for their particular situation. When meeting with an individual who is interested in taking out a mortgage loan, mortgage brokers are responsible for providing information about the various types of loan programs that are available based on relevant factors including, but not limited to:
- The individuals credit history
- Down payment availability
- Property location and value
Brokers also educate customers about what to expect throughout the loan process, including details about guidelines for loan programs, interest rates, and the fees and expenses associated with taking out a mortgage loan. It’s important to provide prospective customers with all of the facts necessary so they can make a wise decision regarding the best real estate financing option to pursue.
Once a client has decided to apply for a mortgage loan, the broker will work closely with the individuals to secure all documentation necessary to complete the financing process. This starts with the process of getting the client started with completing the initial mortgage application to securing information needed to prepare for closing through the actual closing process. Brokers provide their clients with a list of the information that will be needed in order for the lender to give preliminary approval for the loan, then often work closely with the real estate and closing agents to ensure that the survey, appraisal, title search, and other important details are handled in a timely manner.
Educational Requirements to have a Mortgage Broking Profession
There are no hard-and-fast requirements for becoming a mortgage broker, but you will need some type of training. Many brokers are former Bankers or loan officers who decided to strike out on their own, or real estate agents who decided they wanted to try the financial side of things to complement their customer service and professionalism. A background in sales is often helpful.
Financial advisors make very good mortgage brokers generally as they are good in financial details. Financial advisors who conduct mortgage planning are able to provide better and more holistic advice. About 50% of a person’s wealth is held in properties, another 50% is in insurance, equities and bonds, so a financial advisor who is unable to manage mortgage planning will eventually lose their customers to those who can do so.
Mortgage Brokers in Singapore are not required to be licensed, but typically you will need to be educated on the various details of lending, as well as the many laws and regulations that you will be subject to. This information is passed along through online, or self-study. As regulation around mortgage are constantly changing, you require continuing education from as well.
For ex-bankers who are serious and passionate about Mortgage, it is not an easy business, but there is a way. For new comers or mid-career people who wants to get into banking, becoming a mortgage broker will open the doors to an eventual banking career as mortgage brokers are sought after to become bankers and vice-versa. Tools such as Home Loan Report allows you to start quickly.
Who Makes a Good Candidate for a Mortgage Broking Profession?
A mortgage broking profession is basically a sales career. If you cannot see yourself as a salesperson, this may not be the position for you. Even though sales-based, the fact that you will have customers at one of the most exciting points in their life means that your likely to be met with a little more enthusiasm than the average telemarketer.
Customers want to compare home loan, understand their TDSR from multiple properties and want to find out their loan quantum, down-payment, Monthly progressive payment, interest cost and savings for switching for refinancing, etc. You cannot deny customers this detailed and professional service. People who are more “relationship based” have to complement their people skills with data and analysis. Things are increasingly getting more technical and analysis based. Each of these requests from the customers will easily take hours to prepare.
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