A Mortgage Loan Officer offers a career path that enables one to transform the lives of people and their families by empowering them to own houses. Altogether, the process may look rather challenging; however, it is quite realistic when the proper steps are taken and useful advice is obtained.
If you’re wondering how to become a loan officer, this guide will walk you through the licensing requirements, training process, and tips to build a successful career.
What Does a Loan Officer Do?
Mortgage loan officers help borrowers secure financing to purchase or refinance homes. Their responsibilities include:
- Reviewing financial documents and credit reports
- Explaining loan options to clients
- Working with underwriters and processors to close loans on time
- Building relationships with real estate agents and referral partners
Because they play such an important role in lending, MLOs must be licensed in every state where they originate loans.
Why Become a Loan Officer?
Before we dive into how to become a loan officer, here are a few reasons to consider this career:
- Strong earning potential: Many MLOs earn $70,000–$80,000 annually, with top performers making $100,000–$200,000+ in commission.
- Flexible work schedule: Many loan officers work remotely or set their own hours.
- Career satisfaction: Helping people buy homes can be highly rewarding.
- Long-term growth opportunities: Experienced MLOs can move into management, open their own brokerage, or specialize in commercial lending.
→ Read more: mortgage loan officer salary
The process of becoming a mortgage loan officer could be an ideal profession since it suggests involvement in the provision of people's and families’ genuine need, which is homeownership. To embark on this path, follow these detailed steps to learn how to become a mortgage loan officer:
1. Meet Basic Eligibility Requirements
You must:
- Be at least 18 years old
- Have a valid Social Security Number
- Pass a criminal background check and credit report review
Certain felony convictions (especially those related to fraud or dishonesty) can disqualify applicants
2. Complete 20 Hours of NMLS Pre-Licensing Education
All states require MLOs to complete 20 hours of NMLS-approved coursework under the SAFE Act:
- 3 hours federal mortgage law
- 3 hours ethics
- 2 hours non-traditional lending
- 12 hours electives (some states add extra state-specific hours)
Top training providers include:
- The CE Shop
- Mortgage Educators & Compliance
- OnCourse Learning
Cost: $200–$400 | Timeframe: 1–2 weeks
3. Pass the SAFE Mortgage Loan Originator Exam
After completing your coursework, you must pass the SAFE MLO Test:
- 125 multiple-choice questions
- Minimum passing score: 75%
- Duration: 190 minutes
- Exam fee: $110
Many education providers offer practice exams to help you prepare.
4. Submit Your NMLS Application
Create an account with the Nationwide Multistate Licensing System (NMLS) and submit:
- MU4 application form
- Fingerprints and background check (~$36)
- Credit report authorization (~$15)
- Licensing fees (~$330–$400 depending on the state)
Processing usually takes 2–4 weeks.
5. Get Sponsored by a Licensed Mortgage Company
Your license won’t be active until you are sponsored by a state-licensed mortgage company or financial institution. Sponsorship verifies that you’ll originate loans under their supervision.
6. Maintain Your License with Continuing Education
Every year, MLOs must complete 8 hours of continuing education (CE), including:
- 3 hours federal law
- 2 hours ethics
- 2 hours non-traditional lending
- 1 elective hour (some states require additional state-specific CE)
Licenses must be renewed annually through NMLS, usually by December 31.
How Long Does It Take to Become a Loan Officer?
Most new loan officers complete the process in 4–8 weeks:
| Step | Time Estimate |
| Pre-licensing education | 1–2 weeks |
| Exam prep & SAFE test | 1–2 weeks |
| NMLS application processing | 2–3 weeks |
| Sponsorship approval | ~1 week |
→ Read more: Can you become a mortgage loan originator with bad credit?
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Tips for Success as a New Loan Officer
- Invest in quality training: Good education helps you feel confident early on.
- Choose the right company: Look for employers that offer marketing support, leads, and multiple loan products.
- Build your network: Establish relationships with real estate agents, builders, and financial advisors.
- Use technology: CRM systems and automated loan platforms help you close loans faster and provide better client service.
Why Choose Loan Factory to Launch Your Career?
At Loan Factory, we make it easier for new and experienced loan officers to succeed:
- Free weekly training with Thuan Nguyen, CEO of Loan Factory and the #1 loan officer in the U.S.
- Access to +240 lenders so you can close almost any loan type
- Free MOSO technology platform to streamline the loan process
- 100% commission minus a flat $595 per closed loan
- No monthly fees, desk fees, or production minimums
- Company-generated leads in 42 states
With the right training and technology, you can focus on building your business and earning more—without unnecessary overhead.
Ready to Become a Loan Officer?
Now that you know how to become a loan officer, it’s time to take the first step toward your new career. With dedication and the right company, you can get licensed and start closing loans in as little as two months. Start today: www.loanfactory.com/becoming-a-loan-officer.
Join our webinar: https://www.loanfactory.com/loan-officer or call to hotline: 714-591-8143 to learn more about opportunities with us.
Read more: Mortgage Loan Originator vs. Mortgage Broker: Key Differences
