Why Have A License?
If you’re considering being a licensed real mortgage broker, you are going to need to be licensed. Having a mortgage broker license definitely offers many benefits and can help you to build a great career in this field. While you want to make the process of getting your license very fast and smooth, you also have to avoid taking any shortcuts that could cost you. Before you try to get the license you need, here are a few myths that you need to keep in mind. Learn the truth about mortgage broker license requirements and avoid making mistakes that can keep you from getting your mortgage broker license.
Mortgage Broker License – Myths Debunked
First, many people think that they are only going to need to have a mortgage broker license in the state they are living in. Even if you have your license in one state, you won’t be able to offer loans in other states. Keep in mind that each state has their own set of mortgage broker license requirements that must be fulfilled.
When you only have a license in your state, they you can only deal with loans that are in the same state. If you do want to offer mortgages in surrounding states, you’ll have to also get licensed in those states as well.
Another of the myths is that your surety bond is going to cover you in any state where you get a license. Some even look at this surety bond as a type of insurance that can be used when you have a mortgage broker license. This bond is designed to keep third parties and consumers protected and the bond is only good in the state where you get it. Every state will need to have a bond of their own for those consumers.
If you want to get a licensed in a variety of different states, it could mean that you may need to get as much as two million dollars in a surety bond. Often it is difficult to get this type of a bond, which means your company may not be able to get licensed in a lot of different states.
If you want to avoid being caught up in common myths surrounding you ability to get a mortgage broker license, it is a good idea to take a closer look at the information surrounding mortgage broker license requirements. Take your time and ensure you do everything the right way. Trying to find shortcuts is only going to end in disaster and you won’t get the license that you need, paperwork must be done the right way and you’ll need to ensure you get that license in every state where you want to offer mortgages.
Benefits to Clients
One of the main reasons that you need to get that mortgage broker license is to offer benefits to your clients. While most states require this license anyway, you’ll find that clients will be more comfortable with you if they know that you do have a license in the state. In fact, consumers today are taking the time to do the research on brokers they are considering, which means they can find out if you have a license.
To ensure you can offer quality assistance to clients and gain their trust, getting that license is definitely going to be important. This license will also tell clients that you will be following the highest ethical standards, since there are rules that you have to follow once you get this license. You are not able to offer deceptive or misleading ads and you also have to offer the requirements and conditions on products that you are offering. You even have guidelines on the fees that you can charge. When you have a license, consumers can rest assured that you are legitimate and will be following the right code of ethics.
A Real Estate License Isn’t Good Enough
Some people have the idea that they don’t need to have a mortgage broker license if they already have a real estate license. Sure, this offers you some excellent experience, but you still will need to have the right license if you are going to become a mortgage broker.
Take the time to go ahead and get that license, and the mortgage broker and real estate licenses will both work to make you an excellent mortgage broker.