Getting Started in the Mortgage Business
This post was inspired by reading Jason Zhang's blog about the struggle of getting started in the world of Real Estate. While I'm not a real estate agent, I believe building a mortgage or real estate business is similar. We encounter many of the same struggles, both in getting our businesses off the ground and in day to day activities.
Though I've been in the business for 7+ years, I'm constantly humbled by what I don't know, and while I spend most time looking at my future 'to do' list, Jason's blog took me back to where I came from - a 21 year old college grad who could barely spell 'mortgage', let alone guide a loan from application to funding. For anyone in a similar spot, here's some advice I wish I'd received back then:
Learn - when getting started, it's important to learn as much as you can, as fast as you can. Loan programs and guidelines, industry jargon, disclosures & sales contracts, credit reports, and how a loan flows through the process to funding. Your knowledge is the foundation for everything. You'll learn throughout your career, but you MUST know the basics before you take a loan application. If possible, start out as a processor, assistant to a successful loan officer, or underwriting assistant.
Start your network at home - Your friends & family won't care that you're new to the business, and they'll (hopefully) still love you when you mess up. Refinancing for family, friends, and cold company leads allowed me to learn the process through experience, without the pressure of a business referral.
Find a mentor - Know that person in your office that's too busy to talk to anyone because they're doing tons of business? Watch THEM. They're too busy to give you play by play, but keep an eye on everything they do from when they get to the office til the time they leave (you need to get there earlier than them, and leave later). Likewise, avoid advice from those who have all day to give it but aren't following their own. These people are a plague to a new LO.
Build a team - Ok, you know what you're doing, have closed a few loans , and you're comfortable with the loan process. Now network! Every loan officer should have the following team members - Realtors, financial advisor, CPA, contractor, title company, real estate attorney, and divorce attorney local to every area they do business. Your team is not only a wonderful resource for your clients, but also a great source of knowledge for you to learn about different areas of the industry & their relation to yours. Always ask for referrals, but never just expect them - if you offer value, know what you're doing, and aren't a jerk, the referrals will come on their own.
Work for YOU - every MLO works for a lender, broker, or bank, but you should be marketing YOU - strive to be different, and better than, every other MLO in your area & your company. Your company is open til 5? Be available til 9. And on weekends. Market yourself, not your company. Should your company go in a direction you don't want to follow, you need to know your clients & referral partners are coming with you. Keep a detailed database of all your contacts in a personal file.
Market - mailers, internet marketing, website building, blogging (on ActiveRain, of course), attending trade shows, joining industry groups, working your database. Market yourself everywhere you can. Be cost effective, efficient, and don't stop when you get busy (if you do all of the above, you WILL get busy). If knowledge is the foundation of your business (boring, but vital), marketing is your granite counter, walk in shower with 1000 jets, and roller coaster in your backyard - marketing is what brings dollars in. Everyone loves dollars.
Perfect your craft - With all of the above in place, you will get business, you will close loans, and you will see that the real estate industry allows a combination of flexibility, freedom, & income potential seen in few other fields. Now's the time to take it to the next level. Perfect your systems, find ways to be more efficient, streamlined, and cost effective. Learn & promote niches, and keep up with everchanging laws, programs, and market trends.
Despite what many a "guru" might say, there's no 'type' of person that is a successful mortgage banker - they come in all shapes & sizes, different personality types, many different backgrounds. Often what separates the very best from the bottom of the barrel is nothing more than passion and work ethic. This industry isn't for slackers, but if you're willing to work and learn, mortgage origination can be an incredibly rewarding profession.
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