Requirements to Be a Mortgage Loan Officer: Step-by-Step Guide

A mortgage loan officer (MLO) is a licensed professional who helps individuals and families apply for and secure mortgage loans. They work with banks, credit unions, or mortgage brokerages to guide borrowers through buying a home, refinancing, or investing in real estate.

According to the Bureau of Labor Statistics (BLS), the median annual wage for loan officers in 2023 was $65,740, and top performers earn well over six figures BLS Loan Officers.

If you’re wondering what it takes to become one, here are the requirements to be a mortgage loan officer in the U.S.

Step 1: Meet Basic Eligibility

Meet Basic Eligibility

Be at least 18 years old.
Have a high school diploma or GED (a college degree is not required).
Have a valid Social Security Number (needed for background checks and licensing).

Step 2: Complete Pre-Licensing Education

Complete Pre-Licensing Education

The SAFE Act (Secure and Fair Enforcement for Mortgage Licensing Act) requires new loan officers to take 20 hours of pre-licensing education through an NMLS-approved provider.

The coursework covers:

Federal mortgage laws.
Ethics in lending.
Mortgage loan programs (FHA, VA, USDA, Conventional).
Nontraditional mortgages.

You can find approved classes on the official NMLS Course Provider List.

Step 3: Pass the SAFE MLO Test

Pass the SAFE MLO Test

After completing your coursework, you must pass the SAFE Mortgage Loan Originator Test:

The exam includes 125 questions (national + state-specific content).
You need a 75% or higher to pass.
Info and scheduling: NMLS SAFE Test.

Step 4: Complete Background Checks

Complete Background Checks

The NMLS requires all applicants to:

Submit FBI fingerprints for a criminal background check.Complete Background Checks
Provide a credit report to ensure financial responsibility.

Even with past financial struggles, you may still qualify if you can show responsibility and honesty.

Step 5: Apply for an NMLS License

Apply for an NMLS License

Once you pass the exam and background checks:

File your application through the Nationwide Multistate Licensing System (NMLS).
Pay application and background check fees (usually $600–$900 total depending on the state).

Step 6: Get Sponsored by a Mortgage Company

Get Sponsored by a Mortgage Company

Your license becomes “active” only when you’re sponsored by a mortgage company or brokerage. This means you must work under a licensed employer to originate loans.

For example, many new LOs join companies like Loan Factory, where they can get mentorship, training, and the tools needed to grow their careers.

Skills Needed Beyond the Requirements

Meeting the legal requirements is just the first step. Successful loan officers also develop:

Communication skills – Explaining complex mortgage terms in simple language.
Sales skills – Building trust and closing deals with clients.
Tech skills – Using CRM, LOS, and digital mortgage tools.
Attention to detail – Staying compliant with state and federal laws.

Why Loan Factory Is the Best Place to Start

Starting your career can be overwhelming, but Loan Factory makes it easier by giving you:

Free MOSO platform – Includes CRM, LOS, pricing engine, borrower app, and marketing tools.
Keep 100% commission – Only pay $595 admin fee + $500 processing (if you use our in-house team).
No monthly desk or tech fees – Unlike traditional brokerages.
Mentorship from Thuan Nguyen, America’s #1 Loan Officer.
Leads in 42 states – So you don’t have to start from scratch.

“At Loan Factory, we make sure new loan officers have the technology, training, and support to succeed from day one.” – Thuan Nguyen

The requirements to be a mortgage loan officer are straightforward: basic eligibility, 20 hours of pre-licensing education, passing the SAFE exam, background checks, and company sponsorship.

Once licensed, joining a platform like Loan Factory gives you the tools, training, and support to grow your career quickly in one of the most rewarding professions in the U.S.

Apply today at LoanFactory.com and start your journey as a mortgage loan officer with The Best FinTech Mortgage Platform in the USA.

→ Explore Best Free CRM for Mortgage Loan Officers