Considering A Career Change? Look No Further Than Loan Origination

Why Becoming An LO Is A Great Career Move

Are you passionate about sales, self-driven and looking for a fulfilling career where you can positively impact others lives? Consider becoming a mortgage loan originator (LO). 

What exactly is an LO and what do they do?

We’re glad you asked. When it comes to the home buying process, you typically deal with two primary professionals: your loan originator and your real estate agent. While many people think to go to a real estate agent first as they’re the party who will help you find the perfect home to settle down in, your loan originator is actually the first person you’ll work with in your journey to homeownership. 

To put it simply, Bankrate describes a mortgage loan originator as someone who “helps a borrower choose the correct mortgage product and complete the application process.” To break it down one step further, a loan originator is the “salesperson” in the transaction between the borrower and the lender who will provide the mortgage loan. However, a loan originator’s job consists of so much more than that.

Once a potential borrower expresses their interest in buying a home (or refinancing a current home), the loan originator will set up a consultation with them to discuss their overall home goals, financial status, etc. If the borrower is in a good place financially and is looking to purchase within the near future, the loan originator will help the borrower get pre-qualified — this includes shopping around for the best rate and loan product to fit the borrower’s needs. (If the borrower is not yet ready or needs to improve their financial status, the loan originator will help the borrower set up a plan of action.) From there, the loan originator will stay in contact with the borrower and the agent until an offer is placed on a home. Once the offer is accepted, the loan originator will work with all parties (processing, underwriting, etc.) to see the loan through to the end while keeping the borrower updated during every step of the process. 

Why should you become an LO (aka what are the benefits?)

While having a sales and customer-based background can be helpful, it’s not necessary to become an LO. In fact, all it really takes to become a successful LO is a good attitude and self-discipline. In addition, loan origination is a career path that does not require a college degree — though, you will need to become licensed.

So, let’s get to answering the main topic on your mind: money. As a loan originator, you have an unlimited income potential. Yes, you heard right. Depending on the loan origination model you choose, you can earn 100% commission or a combination of base pay plus commission. Though your earning potential is entirely in your control and dependent on how much effort you’re willing to put into it, the “average salary for a mortgage loan originator is $165,095 per year in the United States” per Indeed.  

Not only is your income potential up to you, but so is your schedule. As a loan originator you often have flexibility on where and when you choose to work, however many LOs still choose to work a 9-5 schedule (since this is when most lenders are open and available). Depending on how you take advantage of your time in a day, it is possible to work only part-time or your chosen hours and still make just as much, or more, than the LOs who stick with standard schedules. The best part about having a flexible schedule? The freedom to tailor your work life around your personal life — now that’s what we call a true work-life balance. 

Unlike some career fields where you might have to worry about your job being eliminated, loan origination has great job security. People will always need homes, and new homes will continue to become available on the market daily (whether they’re newly constructed or just newly listed by a seller). In the times where it is a hot seller’s market, you can switch gears to refinancing and continue profiting in your business. Even as times change and we become more reliant on technology, there will still always be a need for loan originators. In a recent poll on our Instagram, we asked our local community a series of questions regarding how they preferred to handle the loan process and the majority of people preferred to deal with physical people (including live phone calls vs. emails, completing the loan process in-person rather than online, etc.). 

Our favorite benefit of becoming a loan originator? Making a difference in people’s lives. Each and every person has a different story, and it will always touch your heart. Given that purchasing a home is one of the biggest financial decisions a person can make in life, it means a lot when they choose YOU to take the journey with them to buying a home. You’re not just a loan originator…you’re a helping hand, you’re your client’s best friend, you’re someone who helps make dreams come true. 

Interested in becoming a loan originator? Let’s chat.

Be sure to check out our loan origination stories on YouTube from our Home1st team! 

Branden Negron’s Home1st Story- https://youtu.be/TgZTC94pPDM 

Jocelyn Christiansen’s Home1st Story- https://youtu.be/i7Ucj-aJ454