How Do I Become a Loan Broker?

Research what it takes to become a loan broker. Learn about education requirements, licensing, job duties and salary to find out if this is the career for you. Schools offering Finance degrees can also be found in these popular choices.

What Is a Loan Broker?

Loan brokers provide various financial services, including selling investments and trusts and arranging loans. They work directly with individual clients to advise them on investments appropriate to their financial ability and needs. Loan brokers must find their own clients to create a client base. This requires extensive networking and cold calling as well as referrals from satisfied clients. Take a look at the following chart for an overview of how to enter this field.

Education Required High school diploma, bachelor's degree to improve job prospects
Key Responsibilities Sell investments and trusts, provide information to clients about available services, analyze agreements, make arrangements for a client's loan
Licensure/Certification State licensure required, certification is voluntary
Job Growth (2018-2028) 4% (for all financial services sales agents)*
Average Salary (2018) $98,770 (for all financial services sales agents)*

Source: *U.S. Bureau of Labor Statistics

What is a Loan Broker?

According to O*NET OnLine, loan broker is an alternate term for sales and financial services agents who sell loans and provide other financial services, such as tax and securities counseling ( The specific duties for this position can vary based on your job title. For example, your responsibilities in this position may include selling investments and trusts, providing information to existing and potential clients about available services, analyzing agreements to determine profit margins and focusing on business trends.

Some loan brokers may be referred to as mortgage brokers or mortgage loan originators and assist homebuyers during the process of purchasing a new home. As a loan broker, you may also procure or make arrangements for a client's loan, including an expected loan, and assist your clients with the loan application process. You may also act as an agent to solicit borrowers, and you may work independently.

What Type of Training Will I Need?

The training you will need will vary, depending on your job. According to the U.S. Bureau of Labor Statistics (BLS), the minimum education requirement needed by a real estate agent or sales agent is a high school diploma ( All agents and brokers must be licensed, and have to take state-approved courses in real estate to prepare for their licensing exams. Aspiring real estate brokers and sales agents who have taken real estate courses in college may be excused from some of the required pre-licensing coursework.

There are a variety of certificate programs available for real estate brokers and loan originators, as well as mortgage brokers. These programs are designed to provide you with a strong foundation and may help you meet state requirements for your position. Coursework in these programs can cover related topics like real estate appraisal, finance, real estate law and loan processing.

O*NET OnLine noted in 2019 that 22% of sales and financial services agents had a bachelor's degree. You may consider a program, such as the Bachelor of Science in Finance, to further prepare for some broker positions. For career advancement, a degree like the Master of Business Administration is generally required.

What License Will I Need?

The type of license you need will depend upon the nature of your position as well as the state requirements where you work. The BLS notes that all states and the District of Columbia require real estate brokers and sales agents to be licensed. Although requirements vary by state, general requirements include being at least 18 years of age, completing real estate coursework and passing the licensing exam.

If you have a bachelor's degree, some states may waive the usual 1-3 years of experience. In order to maintain your license, which needs to be renewed every 2-4 years, you'll usually need to take additional coursework. Since requirements differ, you'll want to check with the licensing board in the state where you plan to work.

What Are Some Related Alternative Careers?

Those interested in becoming a loan broker may also want to consider some related careers which require a similar level of education. An insurance sales agent requires only a high school diploma to gain entry-level employment. They explain and sell various insurance policies to clients. Financial managers require a bachelor's degree. They work for organizations to help maintain their long-term financial health. Personal financial advisors work with clients on planning financial matters such as investments, taxes, or retirement. They also require a bachelor's degree to gain entry-level employment.

To continue researching, browse degree options below for course curriculum, prerequisites and financial aid information. Or, learn more about the subject by reading the related articles below:

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