Museum Of African American History And Culture

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Month: September 2020

What Degree Do I Need to Become a Mortgage Broker?

In recent years we have slowly seen the real estate market rebuild itself after a cataclysmic collapse in the early 2000s. And as it builds itself back up, it is slowly becoming a more profitable job to go after. And one field that is doing especially well in the field of mortgages.

Being a Mortgage Broker is a tough, yet rewarding job. You get to help people find their new home and put a smile on their face while also securing yourself a lucrative and fulfilling job. It offers flexible hours, hands-on interaction with properties, and customers.

But what exactly does a Mortgage Broker do? And more importantly, how can you become one? We are going to walk you through the educational requirements to become a Mortgage Broker, along with explaining what they do during their working day.

 

What Is A Mortgage Broker

A Mortgage Broker, at a first glance, might seem to be someone who provides a Mortgage to a customer. But this isn’t the case. In simple terms, a Mortgage Broker is a middle man working on your behalf to secure you the best mortgage for your financial situation and the property you are interested in.

So why would anyone want a middle man? Why pay extra on top of the mortgage you are about to get. There are a few reasons.

Firstly, Mortage brokers have to be certified. This means they must adhere to strict rules and regulations surrounding the mortgage process. This provides a lot of security to the customer. It can be all too easy to get bogged down by legal jargon or financial terminology as a customer, so having a broker eliminates that and makes sure you aren’t being scammed.

Secondly, Mortgage brokers are able to deal with entities that the general public can’t. This means they can secure a mortgage from a lot of different sources, rather than just a bank. This means by using a mortgage broker a customer has a better chance of securing a great deal.

 

Educational Requierments

The big question you are most likely asking is this: What Degree do I need?

The answer might surprise you. There isn’t one. But let us be more specific. This doesn’t mean you can rock up with no educational background and get a job. It means there isn’t one specific degree you need. Sometimes you don’t even need a college-level degree at all.

But you do need a few things. Firstly is a strong understanding of finance and economics. This has to be a bit above a basic level unless you are joining a training scheme.

Your job as a mortgage broker will involve a lot of equations surrounding repayments, financing processes and you will have to calculate the interest on a mortgage for your client. A lot of numbers. So if numeracy is your weak point, this job is not for you at all.

Now, if you are planning to get a degree, we would highly recommend going into finance or economics, or a merging of both if that is on offer. Some colleges or trade schools offer specific courses in real estate, which includes all the information needed to be a mortgage broker with options to branch into property management or development.

These aren’t your only two options. If you do a maths-based subject, such as physics or maths itself, you still stand a good chance of breaking into the field of real estate. As long as you are willing to learn and can apply your mathematical knowledge into its practical applications, you’ll be fine.

Coming from a legal background is also a strong start. There is a lot of legal work involved in being a mortgage broker, and as long as you are good numerical literacy, you will be off to a roaring start. It will help a lot with the next part of the process as well.

 

Licencing

All Mortgage Brokers need to be registered and receive a license. You might be wondering what purpose this serves. The license is received after attending a 20-hour training course and completing an in-depth test on everything learned.

During the course, you will have to learn all the federal and state laws concerning mortgage payments, loans, and acquisition. This is to make sure everyone involved in the mortgage process is protected and is acting lawfully. The course also looks into the ethical side of being a loan officer. This involves understanding when someone can’t financially afford a loan and when to sit your client down and tell them getting a mortgage isn’t for them.

The test isn’t easy by any stretch of the imagination. It will require you to study hard and be well prepared. So it helps if your academic background has prepared you for rigorous exam processes.

It is important to note that within this test, known as the SAFE Mortgage Loan Originator Test, has a state-specific requirement around it as well. So you need to make sure whatever material you are studying from is giving you the correct information for your specific state.

 

In conclusion, there is no one degree needed to become a mortgage broker. But economics or finance are the two biggest courses that will put you in good stead for this career. The best advice we can give is to hit the books and learn as much as you possibly can about the world of real estate.

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Banking, Stocks, Interest and Investments – How It All Works

Banking

Banking refers to how a person chooses to look after their money and can include a wide range of processes such as the type of account you choose to use and how you choose to access your money. The average person is said to have at least three different kinds of accounts with many choosing to have one main account to cover expenses and another savings account to help put money away for future events and other expensive purchases. There are many ways in which people access the money in their accounts with the amount of internet banking users increasing over the last few years, online banking is a very useful tool for those who wish to transfer money to their friends or keep on top of their bank balance without having to visit the bank or find a cash machine.

 

For those who require a more high profile banking solution, you may choose to look at joining a private bank that can handle cases that a commercial bank could not. If you are someone who is in need of a service like this you may have been considering private banking vs wealth management, and which would be the best for your financial needs. Private banking is great for somebody who requires a level of discretion with their banking and wealth management refers to external advice around what you should be doing with your money and any possible investments that are available.

 

Stocks

The stock market was first created in 1792 on Wall Street and has been a hugely successful addition to the financial sector which has increased in value up to the present day. If you are someone who isn’t familiar with trading on the stock market then here are some of the basics, a stock market is a place for individual companies and institutions to come and buy or sell shares of their company for profit. The stock market itself is where you can buy said shares which are now done in a primarily electronic format, brokers websites are easy to use and easily accessible for all of your trading requirements.

 

If you are interested in getting started with trading stocks my advice would be to start off small, with low risk and low-value investments you can get a feel for what you need to do without the risk of losing a significant sum. This also allows you to practice which stocks would make a good investment, and you can always increase your investments as you start to make money. Another great tip for beginners in stock trading would be to stick to a predetermined budget and to set up a separate account that you use for trading.

 

Interest

Interest refers to the money a bank or company charges in exchange for using credit or overdrafts on a bank account or payment plan. Interest is one of the many ways a bank will make money from their customers in return for allowing payments when you are short on money. Interest can be applied to a number of different financial services so I would take extra care that you know how much a company’s interest rates are prior to you making the payment, in cases where a lot of interest is going to be charged you should make a decision in regards to whether or not it is worth it as you could end up paying much more than you need to. If you need advice around interest payments there are a variety of price comparison websites available that can search for loans, payment plans, or bank accounts with the best interest rate, ensuring you can find a manageable rate for you.

 

As previously mentioned interest can make your purchases significantly more expensive than they need to be so you should take time to consider if you can realistically afford the rate and if the purchase is worth getting into debt. Interest is also applied to any loans you may take out both from the bank and an external company, getting a loan should be a last resort decision as to the interest you end up paying can cause further issues in the future.

 

Investments

Similarly to trading on the stock market, investing your money is another great way to make a lot of money, rather than being limited to buying and trading stocks, investing in a company is your own private decision where you give money to a company or investment with the intention to see a significant return in terms of profit. This process is considered more of a risk as you are counting on the business to do well and become successful however, this is not always the reality. In some cases, even with the investment, the company could fail to do well and your investment is not returned. This is why you should take particular care and try to set up a legal contract to offer yourself some degree of financial protection, as this is your own personal decision should you choose to invest in a company you should be wary and only invest in something you truly have faith in.

 

Investments are a big decision and should not be done in a hurry, if you are thinking about making an investment in order to secure yourself an asset for the future there are a variety of financial investment services out there for help and advice.

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