Training a New Mortgage Loan Officer Without Any Experience

This blog explores the process of training a new mortgage loan officer, particularly those without prior experience. Gustan Cho Associates offers a streamlined training program tailored for individuals aiming to embark on a career as a mortgage loan officer. Training newcomers in this field poses significant challenges for both mentors and rookies.

You can learn how to train a new mortgage loan officer without experience. Comprehensive training strategies, timeline, and best practices for building successful loan officers from the ground up.

For over a decade, Gustan Cho Associates has excelled in training new mortgage loan officers needing more prior experience. While many mortgage companies need experience to hire licensed loan officers, Gustan Cho Associates welcomes motivated individuals willing to learn and strive toward becoming successful loan officers.

Studying and Passing the NMLS MLO Exam

Training a new mortgage loan officer to pass the NMLS Exam is daunting. Regardless of intelligence or test-taking abilities, success hinges on dedicating countless hours to study.

I’ve witnessed attorneys, pharmacists, and doctors fail the NMLS examination due to insufficient preparation. However, passing the NMLS Test merely initiates the process of becoming a loan officer.

Beyond grasping mortgage lending guidelines for FHA, VA, USDA, and Fannie Mae/Freddie Mac, new loan officers must also delve into various case scenarios to adequately prepare for the role.

Training New Mortgage Loan Officers from Scratch at Gustan Cho Associates

Hiring and training a new mortgage loan officer without prior experience can be both challenging and rewarding. While experienced loan officers bring immediate value, training someone from scratch allows you to shape their habits, instill your company culture, and develop a loyal team member who grows with your organization. Find out how Gustan Cho Associates turns mortgage newbies into pros: step-by-step training, real mentors, and room to grow.

So you want to start a mortgage career, but have never worked in lending? At Gustan Cho Associates (GCA), that’s not a deal-breaker. Gustan Cho Associates invest in people, not paperwork.

Our step-by-step program is built to teach you everything you need to know, from basic products to closing a loan file, without the clutter of industry slang. This article breaks down the journey a brand-new recruit takes from day one until closing loans independently.  This comprehensive guide outlines the essential steps, strategies, and best practices for successfully training inexperienced mortgage loan officers.

Why Gustan Cho Associates Loves Hiring Newbies

• We take a plain-vanilla approach. We follow standard agency guidelines, so you won’t have to memorize a long list of rarely used overlays.
• 48-state reach: Our licenses cover 48 states plus select territories.
• You can book a loan in Montana the same month you move from Florida.
• Real mentors: No “figure it out on the internet” training.
• Each new officer is paired with a seasoned MLO who meets with them weekly until they’re ready to fly solo.
• Technology & marketing tools: From AI-driven calculators to real-time rate feeds, we arm MLOs with the latest tools.

Step-by-Step Training for New Mortgage Loan Officers

Training a mortgage loan officer with no experience requires patience, structured planning, and realistic expectations. Most new loan officers need six to twelve months before they become fully productive, with the first ninety days being the most critical for establishing foundational knowledge and confidence.

Learning the Basics of Mortgage Lending

The success of training inexperienced loan officers depends on several critical factors including comprehensive curriculum design, dedicated mentorship, hands-on practice opportunities, and consistent feedback mechanisms. Companies that invest in structured training programs see significantly higher retention rates and faster productivity gains.

We kick off training with:

Loan types: FHA, VA, USDA, Conventional, Jumbo, Non-QM.

• What it takes to qualify a borrower.
• Key terms explained in everyday language.

Shadowing Experienced Loan Officers

• It is best to see the job in action.
• Fresh recruits listen to client calls, watch Zoom meetings, and follow real loan applications.

Mastering Loan Origination Software and Tools

Provide hands-on training with your loan origination system (LOS), customer relationship management (CRM) platform, and other essential technology tools. New loan officers should become comfortable navigating these systems as they will be central to their daily activities.

From the first day, we teach:

• Loan origination systems (LOS).
• CRMs, with GoHighLevel as our standard.
• Rate APIs and mortgage calculators are built into our staff sites.

Building Communication Skills

Clear, confident communication sets successful MLOs apart.

Training covers:

• Turning complex loan terms into plain speech.
• Polite and professional email and phone skills.
• Gaining client and referral trust.

Mentorship and Support at Gustan Cho Associates

Provide detailed training on all loan products your company offers, including conventional loans, FHA, VA, USDA, jumbo loans, and any specialty programs. Cover eligibility requirements, down payment options, interest rate structures, and unique features of each product type.

One-on-One Guidance

Pair new loan officers with experienced, successful mentors who can provide guidance, answer questions, and offer emotional support during the challenging early months.

We pair every new MLO with a mentor who thrives in tricky loans and knows how to navigate and teach the ins and outs. Choose mentors who demonstrate both technical expertise and strong coaching abilities.

Establish support networks including other new hires, experienced team members, and management personnel. New loan officers should feel comfortable seeking help and know exactly where to turn for different types of assistance.

Weekly Training Sessions

Join us every week for live sessions focused on important mortgage topics:

• FHA manual underwriting basics.
• Non-QM loan programs explained.
• Solutions for borrowers facing low credit scores or high DTI.
• Access to an AI Assistant

Enlist the GCA AI Mortgage Expert Assistant for instant answers, calculators, and borrower-analysis tools available any time, day or night.

Career Growth Opportunities

From New Loan Officer to Branch Manager

Most of our branch managers began with zero background. If you’re committed and complete our training, you can move from a starter role to leading a branch.

Realtor and Referral Partner Networks

Follow our step-by-step guides to connect with real estate agents, accountants, and financial advisors and rapidly build a strong referral network.

Marketing and Content Creation Training

We teach mortgage loan originators to:

• Blog with SEO tactics for free, organic leads.
• Create short, engaging videos for social media.
• Use GCA Forums to engage clients and industry experts.

FAQs About Training a New Mortgage Loan Officer at Gustan Cho Associates

Q1: Can I Become a Loan Officer With No Prior Experience?

• Absolutely.
• GCA specializes in training novices to become skilled mortgage professionals.

Q2: How Long Does it Take to Become a Licensed MLO?

• Most trainees finish their 20-hour pre-licensing course and pass the NMLS exam within 30 to 60 days.

Q3: Do I Need a College Degree to Become a Loan Officer?

• No.
• Strong communication skills, determination, and a readiness to learn matter more.

Q4: How Do Mentors Support New MLOs at GCA?

• Mentors walk you through client conversations, loan structuring, compliance, and closing tactics until you feel ready to go solo.

Q5: Will I Get Leads As a New Loan Officer?

• We offer marketing training, referral networks, and AI tech to create quality leads.

Q6: What Makes GCA Different From Other Mortgage Companies?

• We have no lender overlays, accept loans from all states, and have a proven mentorship system.

Q7: Is This a Remote Career Opportunity?

• Absolutely.
• Most MLOs work from home using digital tools, video calls, and CRM systems.

Q8: How Soon Can I Start Closing Loans After Training?

• Depending on their licensing schedule, some new MLOs start closing loans in the first 90 days.

Q9: Do I Need to Pay For Training at GCA?

• No.
• Training and mentorship are completely free for recruits.

Q10: Can I Grow Into Management Roles at GCA?

• Absolutely! GCA is known for promoting home-grown talent, and many of our most accomplished MLOs end up leading branches.

At Gustan Cho Associates, anybody with drive and heart deserves a chance in the mortgage business. Experience isn’t required; your commitment and willingness to learn matter. Our guided coaching, cutting-edge tools, and a no-overlays policy allow rookie loan officers to hit their targets fast.

Ready to launch your mortgage loan officer career? Call us at 800-900-8569 or Apply Now at Gustan Cho Associates.

Pre-Licensing Stage of Becoming a New Loan Officer

Training a new mortgage loan officer requires dedication, time, and patience. Candidates cannot become expert mortgage loan originators overnight.

To become a mortgage loan originator, complete a 20-hour pre-licensing NMLS-approved mortgage course. This pre-licensing course can be taken in a live classroom or completed online.

Various types of 20-hour NMLS-approved pre-licensing courses are available. Some are straight 3-day courses, while others are only in the evenings for those who work full-time. Courses are also scheduled on weekends and spread out over a few weekends.

Investing In MLO Training Courses To Pass the NMLS Exam

Numerous mortgage loan originator training schools are available when it comes to training a new mortgage loan officer, and you can search the internet to find the best fit for your schedule and budget.

Tuition for the 20-hour NMLS pre-licensing course varies widely. Some schools charge less than $200, while others charge more than $400.

This intensive course covers extensive materials and includes practice tests to prepare aspiring loan officers effectively.

Getting Ready For the National NMLS EXAM

Preparing for the national NMLS exam is the initial step in training a new mortgage loan officer to function as both a realtor and a mortgage loan originator simultaneously.

After completing the 20-hour pre-licensing course, students must pass an exam, typically administered by the school. Most institutions allow multiple attempts, and some offer open-book tests, ensuring all students pass.

However, passing the pre-licensing course alone doesn’t adequately prepare individuals for the rigors of becoming a mortgage loan officer; there’s still much more to learn and master in the process.

What Is Next After Completing The 20 Hour NMLS-approved pre-licensing Class

Most students who pass the 20-hour NMLS pre-licensing class think that they are now ready to take the national NMLS exam. This is not true. The short quizzes of the 20-hour NMLS pre-licensing exam do not even come close to preparing for the national NMLS exam, a 3-hour test consisting of 125 questions.

Pass Rate of the National 125 Questions NMLS EXAM

When training a new mortgage loan officer, it’s crucial to note that the first-time pass rate for the NMLS exam is just under 70%.

To enhance success, I recommend that they read the textbook once and extensively review numerous practice multiple-choice questions.

From my experience, some loan officers fail the national NMLS exam after weeks of studying because they concentrate solely on the text material rather than the practice test questions. New mortgage loan officers must consistently practice over 2,000 test questions to pass the federal NMLS exam.

After Passing The National NMLS Test

Training a new mortgage loan officer without prior experience can be manageable. Companies like Gustan Cho Associates eagerly welcome highly motivated individuals to their mentorship program for mortgage loan originators.

Once you’ve successfully passed the National NMLS exam, the next step involves obtaining licensure in the states where you intend to originate loans.

While some states permit licensing without sponsorship from a mortgage company, others mandate sponsorship and employment with a mortgage company beforehand. When you pass the NMLS test, it’s best to start your search for a suitable mortgage company to join. Despite numerous options available, it’s important to note that most mortgage companies are hesitant to hire brand-new loan officers.

Is it Hard to Get Hired as a Loan Officer?

Getting hired as a loan officer can be challenging, with the difficulty varying based on several factors. Educational background and experience play significant roles, as some positions may require only a high school diploma. In contrast, others prefer candidates with bachelor’s degrees in finance or related fields. Licensing is typically necessary, with candidates needing to pass exams and complete pre-licensing education.

Networking is crucial; building relationships with professionals in the industry can lead to referrals and job opportunities.

Market demand, which can fluctuate depending on economic conditions and housing market trends, also influences hiring ease. Employers seek candidates with strong communication skills, attention to detail, and sales ability. Training programs may be available, especially for those lacking previous industry experience. Overall, persistence, relevant skills, and networking are key to securing a position as a loan officer.

How To Get Started As A New Mortgage Loan Officer

Most mortgage companies typically seek loan officers with at least two years of experience in loan origination. Some even require a minimum monthly production over the preceding year.

There are opportunities for newly licensed mortgage loan originators, albeit usually as Loan Officer Assistants (LOAs).

LOAs receive a modest salary, minimum wage, and a commission per file. The rationale behind many companies’ reluctance to hire brand-new loan officers lies in the time-consuming process of training a new mortgage loan officer. Like training a new trial attorney, educating a new loan officer requires patience and can only be accomplished after some time.

Training a New Mortgage Loan Officer Who Is an Experienced Real Estate Agent

Gustan Cho Associates administers the Verified Preferred Realtor Partner Network (PRPN) program, overseen by Dale Elenteny. We discuss the challenges inherent in training a new mortgage loan officer and emphasize the unique complexities they face. Training a mortgage loan officer who is also a licensed real estate agent proves more efficient than training one who is not.

Can You Hold a Loan Officer and a Real Estate License at The Same Time?

Gustan Cho Associates provides a unique program to train experienced realtors to transition seamlessly into a mortgage loan officer role. John Strange, a senior mortgage loan originator at Gustan Cho Associates, says the following about training a new mortgage loan officer without experience.

This specialized training, tailored for real estate agents looking to expand their expertise and become licensed as realtor/loan officer professionals, focuses on training a new mortgage loan officer.

In the following paragraph, we’d like to explore the comprehensive training program designed to help realtors with the skills and knowledge necessary to excel in their new role as mortgage loan officers.

Realtor Loan Officer Conflict of Interest

When training a new mortgage loan officer, it’s important to note that there’s no conflict of interest for a real estate agent to serve as a loan officer simultaneously within the same transaction.

It makes sense for real estate agents, especially those in training as a new mortgage loan officer, to manage the home loan process and receive compensation accordingly.

Real estate agents quarterback the home purchase process, from contract signing to closing. Concerns about time management for real estate agents, particularly when balancing their role as new mortgage loan officers, are unfounded, as the additional responsibilities can be integrated seamlessly into their existing workflow.

How Does The Gustan Cho Associates Dually Licensed Realtor/MLO Program Work?

Once the real estate agent becomes licensed as a mortgage loan originator, the agent will be sponsored by NEXA Mortgage dba Gustan Cho Associates and will be an employee of Gustan Cho Associates. Frequently asked questions include, “Doesn’t it take time to become an experienced loan officer?” The answer is that training a realtor to become a loan officer does take a lot of time.

How Long Does It Take for a Realtor to Become a Loan Officer?

It takes many years to become an expert loan officer. The team at Gustan Cho Associates has a national reputation for being able to do loans other loan officers cannot do at Gustan Cho Associates. We will discuss why the team at Gustan Cho Associates is able to do mortgage loans that other lenders cannot. We will also explain why 75% of our borrowers could not qualify with other lenders.

When Can The Realtor/Loan Officer Start Originating Their First Loan?

The realtor/loan officer BDM can start originating their first loan when licensed and onboarded at NEXA Mortgage dba Gustan Cho Associates.

The real estate agent can start working as a dual licensed realtor and loan officer simultaneously with their home purchase buyer.

The newly licensed loan officer/real estate agent will be paired with a veteran, experienced loan officer at Gustan Cho Associates. The real estate agent/loan officer will be the assigned loan officer for the home buyer, and the experienced veteran loan officer partner of the realtor/loan officer will be assigned as the loan officer assistant.

Co-Partnership With Realtor/Loan Officer and LOA

The loan officer assistant will do most of the work and take the loan from the time the home purchase contract is turned in until the loan closes. The assigned loan officer/realtor will be copied on all emails and will know every step of the mortgage process until the loan closes.

The realtor/loan officer gets trained by observing and participating with the assigned loan officer assistant throughout the mortgage loan process.

After several loans, the realtor/loan officer can take a loan from start to finish. The realtor/loan officer will have full ongoing support of Gustan Cho Associates and the staff at corporate headquarters if they have any questions or have a case scenario.

Can The Realtor/MLO Originate Own Loans Independently Without an LOA Partner?

The real estate agent can eventually originate their own loans, get leads assigned from the branch, and/or run their own team and/or branch. NEXA Mortgage dba Gustan Cho Associates is licensed in 48 states, including Washington, DC, Puerto Rico, and the U.S. Virgin Islands.

It is a unique program because you can earn income the minute you are licensed, even with no experience in loan origination. The team at Gustan Cho Associates is an expert in training realtors to become loan officers simultaneously.

Training a realtor to become a loan officer at the same time will not affect the real estate agent’s time away from their homebuyer for loan origination activities. We will detail how easy it is. Most homebuyers prefer dually licensed realtor/loan officer professionals versus having two different people handle their home purchase transaction.

Earn Income From Both Sides

Gustan Cho Associates are experts in training new mortgage loan officers who are experienced real estate agents. A veteran loan officer teams up with the newly licensed loan officer/realtor and works as a team. The newly licensed REALTOR/MLO is the assigned loan officer, and the experienced loan officer will be the loan officer assistant (LOA).

The loan officer assistant (LOA) will be a seasoned licensed loan officer who will take charge and work on the file from start to finish.

The REALTOR/MLO will be part of the mortgage loan process, but does not need to get involved unless they want to. The loan will close under the REALTOR/MLO as the loan officer of record. This program will be available in 48 states. For more information, visit Dino Hasapis at dino@gustancho.com.

Can I be a Mortgage Loan Officer as a Side Hustle?

Working as a mortgage loan officer as a side hustle is feasible but requires thoughtful planning and management. First, please comply with licensing requirements, as most states mandate specific credentials. Understanding your employer’s policies regarding side jobs is essential, particularly if they could impact your primary role.

Time management becomes crucial, as well as balancing client meetings, paperwork, and industry updates alongside your main job and personal commitments.

Flexibility is advantageous, as client interactions may extend into evenings or weekends. Building a client base requires effective networking and marketing efforts. Adherence to industry regulations and ongoing professional development are paramount for maintaining credibility and avoiding legal issues.

Training a New Mortgage Loan Officer Who Is a Licensed Realtor

Not every loan application is the same. There are hundreds, if not thousands, of different types of case scenarios a loan officer will encounter throughout their career. There is no shortcut to training a new loan officer. Candidates can memorize all of the mortgage guidelines inside and out, but that will not prepare them to be experienced loan officers.

You should consider becoming a mortgage loan officer to supplement your income and explore your interests in the lending sector. With careful planning and dedication, achieving your financial goals can be rewarding.

Candidates must review dozens, if not hundreds, of loan case scenarios. They actually need to take a mortgage application from a qualified borrower. They need to know how to prepare the mortgage documents, submit them for processing, clear the conditions after the mortgage underwriter issues a conditional loan approval, and get a clear to close.

Learning Mortgage Guidelines and Programs

New loan officers need to know the minimum lending guidelines by FHA, VA, USDA, and Fannie/Freddie, as well as their employer’s lending overlay requirements.

• Lender overlays are the individual mortgage company’s lending requirements and the minimum federal lending guidelines.
• For example, under HUD 4000.1, the FHA Handbook, the minimum credit score required for a 3.5% down payment home purchase FHA Loan is 580 FICO.

Not All Lenders Have the Same Guidelines for The Same Loan Program

Most mortgage companies will not accept borrowers who do not have at least a 620 or 640 credit score. These higher requirements on credit scores to qualify for an FHA loan are called a lender overlay on credit scores.

Just because a borrower meets the minimum FHA, VA, USDA, or Conventional Loan Lending Guidelines does not mean the lender can approve and fund the mortgage borrower. Could you always check the company’s overlays?

New Loan Officer Opportunities for Experienced Real Estate Agents

Gustan Cho Associates will accept individuals who are eager and willing to train as loan officers. New loan officer recruits need to be full-time because training to be a new loan officer cannot be done part-time.

New loan officer recruits will be assigned to an Area Sales Manager and an Area Operations Manager and will work closely with them one-on-one.

The first dozen mortgage loan files will be worked on with a senior loan officer from pre-approval to closing. If you are a career-minded, goal-oriented, hard-working, motivated individual who would like to start a new career as a loan officer, contact Gustan Cho Associates at gcho@gustancho.com or call and/or text us at (800) 900-8569.

FAQ: Training a New Mortgage Loan Officer Without Any Experience

What Does This Blog Cover?

• This blog discusses Gustan Cho Associates’ streamlined training program for new mortgage loan officers who need experience, emphasizing the challenges mentors and rookies face in this process.

How Successful is Gustan Cho Associates in Training New Loan Officers?

• Gustan Cho Associates has successfully trained new mortgage loan officers without experience for over 10 years, providing opportunities for motivated individuals committed to learning and hard work.

What’s Involved in Studying For and Passing the NMLS MLO Exam?

• Passing the NMLS Exam is challenging and requires extensive study.
• Even individuals with advanced degrees have failed due to insufficient preparation.
• After passing, further learning about mortgage lending guidelines and case scenarios is necessary.

What’s the Pre-Licensing Stage of Becoming a New Loan Officer?

• Becoming a mortgage loan originator requires commitment and patience.
• Before taking the exam, candidates must complete a 20-hour pre-licensing NMLS-approved mortgage course, available in various formats.

How Can One Prepare For the National NMLS Exam?

• The exam is a 3-hour test with 125 questions.
• Despite a pass rate of around 70% for first-time test-takers, success requires thorough preparation, including practicing with multiple-choice questions.

What Happens After Passing the National NMLS Test?

• After passing, candidates must get licensed in the states where they plan to originate loans.
• Finding employment with a mortgage company is the next step, which can be challenging for new loan officers without experience.

Can Someone Simultaneously Be a Loan Officer and a Real Estate Agent?

• Gustan Cho Associates offers a program for experienced real estate agents to become licensed mortgage loan originators (MLOs) simultaneously, providing a streamlined path to earning income from both professions.

How Does Gustan Cho Associates’ Program for Dually Licensed Realtors/MLOs Work?

• Under this program, real estate agents become MLOs sponsored by Gustan Cho Associates.
• They work alongside experienced loan officers and receive training and support throughout the mortgage loan process.

Is Working as a Mortgage Loan Officer as a Side Hustle Possible?

• Yes, it’s feasible but requires careful planning, compliance with licensing requirements, effective time management, and balancing mortgage-related activities with other commitments.

What Opportunities Does Gustan Cho Associates Offer For New Loan Officers Who Need Experience?

• Gustan Cho Associates welcomes motivated individuals who commit to full-time training as loan officers.
• They provide one-on-one support and guidance through the initial learning curve.

This Article on Training a New Mortgage Loan Officer Without Any Experience Was UPDATED on September 19th, 2024.