How to Become a Mortgage Broker in Houston, Texas
Becoming a mortgage broker in Houston, Texas, can be a rewarding career choice, offering opportunities to help clients secure home loans while building a lucrative business. This guide walks you through the essential steps to becoming a licensed mortgage broker in Houston.
Step 1: Understand the Role of a Mortgage Broker
A mortgage broker acts as an intermediary between borrowers and lenders, helping clients find the best loan products. Brokers work with multiple lenders to secure competitive rates and loan terms for homebuyers and property investors.
Step 2: Meet the Basic Requirements
- To become a mortgage broker in Texas, you must:
- Be at least 18 years old
- Have a high school diploma or GED
- Pass a background check (criminal history may affect eligibility)
Step 3: Complete Pre-Licensing Education
Texas requires mortgage brokers to complete 20 hours of pre-licensing education from a Nationwide Multistate Licensing System (NMLS)-approved provider. This coursework covers topics such as:
- Federal mortgage laws
- Ethics and fraud prevention
- Mortgage loan origination
- Texas-specific mortgage regulations
Step 4: Pass the NMLS SAFE Mortgage Loan Originator (MLO) Exam
After completing your pre-licensing education, you must pass the SAFE MLO Test, which includes:
A National Component with Uniform State Content (125 questions)
A passing score of 75% or higher
Step 5: Apply for a Mortgage Broker License in Texas
To obtain your mortgage broker license, you must:
- Create an NMLS account at NMLS Resource Center.
- Submit a license application through the Texas Department of Savings and Mortgage Lending (SML).
- Pay the required fees, which typically include:
- NMLS processing fee: ~$30
- Texas licensing fee: ~$300
- Background check and credit report fees (~$36.25 and ~$15, respectively)
Step 6: Get Sponsored by a Mortgage Lender
To operate legally, mortgage brokers in Texas must be sponsored by a state-licensed mortgage company. Many new brokers start by working under an experienced brokerage before opening their own firm.
Step 7: Maintain Your License and Continuing Education
To keep your Texas mortgage broker license active, you must:
Complete 8 hours of continuing education (CE) annually
Renew your license through the NMLS every year
Stay compliant with Texas mortgage laws and ethical guidelines
Step 8: Build Your Mortgage Brokerage Business
Once licensed, you can either work for an established brokerage or start your own firm. To succeed:
Network with real estate agents, lenders, and clients
Stay updated on Houston’s housing market trends
Utilize digital marketing and lead generation strategies
Final Thoughts about becoming a Mortgage Broker in Houston, TX
Becoming a mortgage broker in Houston requires education, licensing, and ongoing professional development. With a strong work ethic and commitment to client service, you can build a successful career helping homebuyers navigate the mortgage process.
If you’re ready to start, visit the NMLS website and begin your journey today!