OVERVIEW
How to Become a Mortgage Broker
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If you’re drawn to the world of real estate and finance and you enjoy helping people navigate one of the biggest purchases of their lives, then becoming a mortgage broker might be your next right move. It’s a career that rewards strong communication skills, financial know-how, and a genuine interest in helping buyers find the right loan.
Mortgage brokers typically need a high school diploma or GED, completion of a NMLS pre-licensing education program, a passing score on the NMLS exam, and a state-issued mortgage broker license. Exact requirements vary by state. This guide covers what a mortgage broker does, the steps to get there, degree options, skills, salary, and job outlook so you can map out your own path.
What Is a Mortgage Broker?
A mortgage broker is a trained professional who serves as an intermediary between financial institutions that offer loans and borrowers seeking to buy real estate. Mortgage brokers depend on strong communication, negotiation, and sales skills to find the best loan options for their clients. Additionally, brokers are responsible for collecting all of the necessary financial paperwork, such as income, employment documentation, and credit reports, to best assess a borrower’s potential for a loan.
You may also come across the terms mortgage loan officer (MLO) or mortgage specialist. These titles are often used in similar contexts, but there are some important distinctions. A loan officer typically works for a single bank, credit union, or mortgage company and can only offer that institution’s loan products. A broker works on behalf of buyers to shop multiple lenders and find the most competitive rate. Under the NMLS, both mortgage brokers and MLOs are classified as mortgage loan originators, so their licensing requirements overlap significantly.
Typically, there are two types of mortgage brokers: affiliated and independent. Affiliated brokers are limited to certain financial institutions and their offers, while independent brokers can advise on the entire market and find the most competitive deal for their clients. Most affiliated brokers are employed directly by a bank or institution, increasing their job security. Independent brokers work as self-employed individuals but value the freedom to be unbiased in their recommendations to clients.
In the last decade, the housing market has experienced upward momentum, with more consumers pursuing their dream of owning real estate. Mortgage brokers help educate clients on the loan process and current market while also securing them the best rates for a loan. The individualized care that a mortgage broker offers first-time home buyers or individuals and families looking to refinance a home is needed when navigating the market.
RESPONSIBILITIES
What Does a Mortgage Broker Do?
The day-to-day responsibilities of a mortgage broker can include:
- Learning more about each client’s finances and personal circumstances.
- Researching and recommending options based on the market, a client’s situation, and their risk profile.
- Helping first-time buyers secure their mortgage.
- Finding offers for those looking to refinance or upsize.
- Ensuring that a client can afford their mortgage now and in the future, if the interest rate rises significantly.
- Educating a client about how the product works, including options and penalties.
- Completing mortgage applications on behalf of clients.
- Assisting older individuals in releasing equity from their homes.
- Providing additional mortgage advice (e.g., what to do in cases of divorce or death, how to find mortgage insurance).
- The work environment for mortgage brokers largely depends on whether they are affiliated or work independently.Ìý
EDUCATION & BEST DEGREES
How Do I Become a Mortgage Broker in 6 Steps?
The path to becoming a mortgage broker follows a general pattern, though specific requirements, including exam content and license fees, vary by state. Here’s how the process typically unfolds:
Step 1: Earn a High School Diploma or GED
The first requirement to become a mortgage broker is a high school diploma or GED. This is the baseline credential you need before you can move on to pre-licensing education or pursue a college degree in a related field.
Step 2: Complete NMLS Pre-Licensing Education
Earning a bachelor’s degree in finance, accounting, marketing or business management can further assist you in your journey to become a mortgage broker. These degree programs provide a strong foundation in business ethics, sales, taxation, management, and more. A degree isn’t required, but it can give you a meaningful edge, especially as you work to build credibility with clients and lenders early in your career.
Step 3: Consider Earning a Bachelor's Degree
Earning a bachelor’s degree in finance, accounting, marketing or business management can further assist you in your journey to become a mortgage broker. These degree programs provide a strong foundation in business ethics, sales, taxation, management, and more. A degree isn’t required, but it can give you a meaningful edge, especially as you work to build credibility with clients and lenders early in your career.
Step 4: Pass the NMLS Exam
Next, you must take and pass the NMLS licensing exam. You must achieve a 75% on both the state and federal portions to pass. The exam tests your knowledge of mortgage regulations, lending laws, and ethical standards. Many candidates take a prep course to feel confident going in.
Step 5: Obtain Your Mortgage Broker License
After passing your exam and registering your business, you’re ready to apply for your mortgage broker license and secure your mortgage broker bond. State requirements can vary, but to obtain a license, you generally need to pass your exam, pay a licensing fee, obtain the appropriate bond, and submit your licensing application. Broker bonds are contracts that protect clients if a broker were to break the rules of operating as a broker in their state. For example, if you approve a client for a loan you know they cannot repay, a claim can be filed. Bonds not only protect your clients but also provide validity for your work. Once your application is approved, the state will send you your mortgage broker license.
Step 6: Build Your Network and Grow Your Business
After approval, the next stage in your career involves building relationships with other professionals and establishing clients. A new mortgage broker earns accountability by spending most of their time networking and establishing relationships with agents, lenders, financial advisors, and accountants. These collaborations will help provide a steady flow of clients to your mortgage brokerage business. Most client relationships happen through referrals, so continuing to foster strong relationships within your community and industry is vital. Being a successful mortgage broker also requires consistent learning. It’s always helpful to regularly update your knowledge and skills with professional development opportunities and training.
What Education Does a Mortgage Broker Need?
To become a mortgage broker, you first need a high school diploma or a GED. From there, the most critical educational requirement is completing the 20-hour NMLS pre-licensing course, as mentioned above.
While a college degree isn’t required, many brokers pursue a bachelor’s degree in finance, accounting, marketing, or business management to strengthen their foundation and stand out in a competitive market.Ìý
State licensing requirements can vary, so always check your specific state’s guidelines through the NMLS licensing system.
Best Degrees for a Mortgage Broker
Business
Business Management – B.S.
Hone your business acumen and garner added respect:...
Hone your business acumen and garner added respect:
- Time: 61%Ìýof graduates finish within 19 months
- Tuition:Ìý$3,830 per 6-month term
- Courses: 40 total courses in this program
Skills for your résumé this program will teach you include:Ìý
- Business communication
- Product development
- Decision making models
- Project management strategies
- Budgeting for business
This online degree program is an excellent choice for kick-starting your organizational management career.
Business
Accounting – B.S.
Have a knack for numbers or fine-tuning finances?...
Have a knack for numbers or fine-tuning finances?
- Time: 62%Ìýof graduates finish within 24 months
- Tuition:Ìý$3850 per 6-month term
- Courses: 41 courses in this program
Skills for your résumé you will learn in this program include:
- Accounting
- Finance
- Financial Statements
- Communication
- Detail Oriented
- Research
Take your first step toward CPA certification and learn how to use GAAP, ledgers, and journals.
Business
Finance – B.S.
This online finance program is career-focused so you will gain relevant...
This online finance program is career-focused so you will gain relevant industry skills.
- Time: 62%Ìýof graduates finish similar programs within 24 months
- Tuition:Ìý$3850 per 6-month term
- Courses: 40 courses in this program
Some careers and jobs this business degree will prepare you for:
- Management
- Accounting
- Finance
- Spreadsheets
- Financial Analysis
- Problem Solving
The competency-based model at WGU allows you to move as quickly as you can master the material, and do your coursework on your schedule. Flexibility is key with the B.S. in finance at WGU.
Business
Accounting – M.S.
Become better qualified to pursue a greater variety of public and private...
Become better qualified to pursue a greater variety of public and private accounting positions:
- Time:Ìý62%Ìýof grads finish within 19 months.
- Tuition:Ìý$4850 per 6-month term.
- Courses:Ìý10-11 total courses in this program
This program offers 4 unique specializations for students to choose from, allowing you to gain specific experience and skills that will help you in your career. Choose from concentrations in taxation, auditing, management accounting, and financial reporting to boost your résumé.
Skills for your résumé that this program will prepare you for:Ìý
- Accounting
- Auditing
- Tax Planning
- Financial Management
- Communication
- Data Analysis
- This MAcc program is designed to prepare you for the CPA exam and also the CMA or CIA exams.
Business
Master of Business Administration
The flexible MBA program you need, focused on business management,...
The flexible MBA program you need, focused on business management, strategy, and leading teams:
- Time:ÌýGraduates can finish in 12 months
- Tuition:Ìý$4850 per 6-month term
- Courses: 11 total courses in this program
Skills for your résumé you will learn in this program include:Ìý
- Leadership strategies
- Talent management
- Communication
- Data collection and interpretation
- Financial statements
Our competency-based model gives you an innovative learning experience you won't find anywhere else—and our MBA grads tell us they loved accelerating their program to see a faster ROI.
Business
Business Leadership Certificate
From organizational behavior to values-based leadership, build...
From organizational behavior to values-based leadership, build foundational skills to lead and manage effectively.
- Time: 4Ìýmonths from start to finish.
- Cost:Ìý$1,125 for the certificate.
- Courses: 3 courses total in this program.
This program is for emerging leaders, however this program does not require a bachelor’s degree, and provides transferable credit towards a WGU degree program.
Whether you aspire to work for a Fortune 500 organization, a government agency, a non-profit organization, or a fast-paced start-up, this certificate can give you the keys to success in a variety of industries, including:
- Finance and Banking
- Healthcare
- Manufacturing
- IT
- Consulting
- Nonprofit
- Government
SKILLS
What Skills Does aÌýMortgage Broker Need?
A successful mortgage broker requires a variety of professional and interpersonal skills. Here’s a look at what matters most in this career.
Professional Skills for Mortgage Brokers
- Financial and lending knowledge: Understanding how mortgage products work, how interest rates affect loan affordability, and how to evaluate a credit report is essential to recommending the right options for each client.
- Regulatory compliance: Staying current on NMLS requirements, state licensing rules, and lending laws protects both your clients and your brokerage.
- Loan analysis: Evaluating a borrower’s financial situation, including income, debt, and credit history, to determine the right loan amount and product requires both analytical skill and attention to detail.
- Sales and negotiation: A strong broker works hard to secure the best possible terms for their clients, which means knowing how to negotiate with lenders and making a compelling case.
- Organization and documentation: The loan process involves a lot of paperwork. Keeping client files accurate and applications moving forward requires strong organizational habits.
Personal Skills for Mortgage Brokers
- Openness: Clients will have to share sensitive personal and financial information with their mortgage broker, so you need to quickly establish yourself as trustworthy.
- Communication: As a broker, you must know how to break down and explain complex information to others in a simple way.
- Numeracy: When negotiating in the market, you must be able to calculate quickly and clearly explain different figures and financial information to your clients.
- Attention to detail: Small details matter when obtaining offers for a client, and your attention to those details will make a huge impact on finding the best products available to them.
- Time management: You’ll be required to manage numerous clients at the same time and secure mortgage offers for them in a timely manner.
- Flexibility: Clients sometimes need to call or email you outside of office hours, particularly for time-sensitive deadlines, so flexibility in your work schedule is important.
How Much Does aÌýMortgage Broker Make?
$171,995
According to Indeed, the average salary for mortgage brokers in the U.S. isÌý.ÌýIncome for brokers is largely dependent on the level of experience, location, broker fees, and whether they are self-employed or work for a financial institution. Brokers are mostly paid through a 1% to 2% commission of the loan amount upon closing.Ìý
What Is the Projected Job Growth?
1%
The U.S. Bureau of Labor Statistics projects that job growth for all loan officers, including mortgage brokers, is expected to grow byÌýÌýbetween 2025 and 2035. Although this number seems low, mortgage brokers will continue to be essential as financial intermediaries between borrowers and lenders and are necessary to help borrowers navigate the process.
Is Becoming a Mortgage Broker Right for You?
Pursuing a mortgage broker license and building your own client base is a significant commitment. Before you take that step, it’s worth asking yourself some honest questions:
- Do you genuinely enjoy helping people navigate complex financial decisions?
- Are you comfortable with a commission-based income that can vary month to month?
- Do you have the discipline to manage your own time, clients, and loan pipelines independently?
- Are you willing to meet your state’s licensing requirements, including the NMLS exam and ongoing continuing education?
- Can you build and maintain relationships with agents, lenders, and other sources over the long term?
- Do you thrive in a fast-moving environment where interest rates, housing markets, and client needs can shift quickly?
If most of those resonate, a career as a mortgage broker could be a strong fit. If a few give you pause, that’s worth sitting with too. Explore WGU’s online business degrees to see how the right education can help you get there.
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