How to Become a Mortgage Broker: Salary & Career Paths for 2025

by Imed Bouchrika, Phd

Co-Founder and Chief Data Scientist

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The mortgage brokerage industry is on an impressive upward trajectory, with projections estimating it will surge to $151.6 billion by 2028, growing at a steady annual rate of 10.3%. This expansion signals strong opportunities for professionals looking to enter a field that blends financial expertise, client service, and market insight. However, many aspiring brokers are unsure where to begin, what qualifications they need, and how to build a rewarding career in this sector. This article aims to provide clear, practical guidance for anyone exploring how to become a mortgage broker in 2025.

Key Things You Should Know About Becoming a Mortgage Broker

• A high school diploma is the minimum requirement, but many brokers pursue degrees in finance, business, or real estate to gain credibility and a competitive edge.
• To work legally, you must complete pre-licensing education, pass the NMLS exam, and register your business with your state.
• Most states require mortgage brokers to complete annual continuing education to renew their license and stay current with laws and practices.

Table of Contents

1. What degree do you need to become a mortgage broker?
2. What are the licensing requirements to become a mortgage broker in 2025?
3. Do mortgage brokers need continuing education to keep their license?
4. What skills are most important for mortgage brokers?
5. How much do mortgage brokers make in 2025?
6. Which cities pay mortgage brokers the most?
7. Are mortgage brokers in demand in 2025?
8. How is technology transforming the mortgage brokerage industry?
9. What are the advancement opportunities for mortgage brokers?
10. How can I optimize operational efficiency to boost my competitive edge?
11. How do you start a mortgage brokerage in 2025?
12. What is the difference between a mortgage broker and a loan officer?
13. Can an advanced degree like an MBA optimize my brokerage strategy?
14. Other Things You Should Know About Becoming a Mortgage Broker

What degree do you need to become a mortgage broker?

While it’s possible to become a mortgage broker with just a high school diploma, many professionals today are pursuing higher education to stand out in a competitive market. According to Zippia, 64% of mortgage brokers hold a bachelor's degree, making it the most common educational path. Associate degrees account for 17% of brokers, while 8% pursue master’s degrees. These numbers show that having a formal education not only enhances your credentials but also prepares you for the financial, regulatory, and interpersonal demands of the job.

A degree in finance, business, or accounting offers a strong foundation in areas such as economics, lending laws, and consumer credit—critical for any broker. But many aspiring professionals are also exploring a real estate degree online to gain specialized knowledge of property markets, mortgage products, and client needs. Online programs provide flexibility while covering relevant topics like real estate finance, ethics, and valuation strategies.

Although not strictly required, earning a degree signals credibility and commitment to the profession. It also gives brokers a competitive edge when dealing with clients and financial institutions. For those entering the field in 2025, combining formal education with practical experience can lay a strong groundwork for long-term success.

What are the licensing requirements to become a mortgage broker in 2025?

Licensing is a crucial step toward becoming a mortgage broker. While a high school diploma or GED is the bare minimum requirement, each state mandates additional steps that ensure brokers understand the legal and ethical frameworks of their work. 

1. Pre-Licensing

One of the first formal steps is to complete 20 hours of pre-licensing education through the Nationwide Mortgage Licensing System (NMLS). This course covers federal and state laws, loan origination ethics, and mortgage practices, equipping you with the knowledge to serve clients responsibly.

2. Passing the NMLS Exam 

After the training, candidates must pass the NMLS licensing exam, which is split into federal and state components. A minimum score of 75% is required on each section to qualify. Many aspiring brokers strengthen their foundation with degrees in fields like finance or accounting. For those who need more structured support in understanding financial systems, a bookkeeping course can be particularly helpful in mastering the language of ledgers and cash flow—key for advising clients.

3. Business Registration

Once you pass the exam, the next step is to register your business in compliance with your state’s regulations. This involves filing the necessary legal documents, paying registration fees, and obtaining a mortgage broker bond. These bonds protect clients by offering financial coverage in cases of misconduct or violations of state rules—such as approving a loan you know a client cannot repay. A valid bond also enhances your reputation as a trustworthy professional.

4. License Application

To finalize the licensing process, you must submit your application along with the appropriate documentation, licensing fees, and proof of bond. Upon review, the state will approve your license if all criteria are met. After that, you're officially authorized to operate as a mortgage broker in your state.

The chart below summarizes the most common educational backgrounds among licensed mortgage brokers today, offering insight into how formal education supports licensing success.

Do mortgage brokers need continuing education to keep their license?

Maintaining your mortgage broker license requires ongoing education. Most states mandate annual continuing education (CE) through the NMLS to ensure that brokers stay updated on federal and state regulations, industry practices, and ethical guidelines. Typically, you’ll need to complete around eight hours of CE each year, though exact requirements vary by state. These courses help reinforce compliance and refresh knowledge in areas like fraud prevention, lending laws, and mortgage ethics.

Some brokers also use CE as an opportunity to specialize or pivot into more advanced roles. For example, if you’re interested in deepening your financial expertise, pursuing the cheapest online accounting master’s degree can enhance your understanding of financial planning and credit systems—skills that can expand your client base or open doors to roles in underwriting or financial advising.

Renewal of your license usually requires proof of CE completion, payment of renewal fees, and confirmation that your mortgage broker bond is still valid. Skipping these steps can result in suspension or revocation of your license, so it’s essential to plan ahead and remain compliant.

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What skills are most important for mortgage brokers?

Mortgage brokers in 2025 need more than just technical know-how—they also need a balance of interpersonal, analytical, and industry-specific skills. According to Zippia, the most common skills found on mortgage broker resumes include a mix of process-based and client-facing competencies that make brokers more effective and trustworthy.

Here are the key skills based on recent data:

• Loan Applications – Understanding and accurately completing loan applications is foundational to the broker’s role. It ensures lenders have all necessary information to make informed decisions.
• FHA and VA Loan Knowledge – Familiarity with government-backed loans is essential, as many clients qualify for FHA or VA loans. Brokers must guide borrowers through eligibility and compliance.
• Loan Programs – Staying informed on various mortgage programs helps brokers offer tailored solutions, from fixed-rate loans to jumbo and adjustable-rate products.
• Credit Reports – Analyzing credit reports enables brokers to assess borrower risk and offer realistic loan options. You don't have to be a business psychologist to be able to do this. Nevertheless, check out the business psychologist career path if this is something you'd be interested in doing.
• Loan Process – Mastery of the full loan process—from application to closing—is key to providing seamless service and managing client expectations.
• Real Estate Brokers – Collaborating effectively with real estate agents ensures smoother transactions and a steady flow of referrals.
• Other Skills – This broad category includes Credit History analysis, Cold Calling, Loan Origination, Commercial Loans, Loan Products, Business Relationship Building, Loan Packaging, and Financial Services.

While many of these can be learned through training or on the job, a well-rounded broker also brings curiosity, adaptability, and strong communication to the table. Even those with unrelated backgrounds—like those holding an online history degree—can thrive if they possess critical thinking and research skills that support decision-making.

The chart below outlines the percentage of brokers who report each of these key skills, giving a clearer picture of what matters most in the field today.

How much do mortgage brokers make in 2025?

As of 2025, mortgage brokers are enjoying highly competitive compensation, especially given the market's strong growth. According to Indeed, the average salary for a mortgage broker in the US is $173,041 per year. This figure reflects not only base earnings but also commissions and bonuses tied to loan volume and client satisfaction.

Several factors influence a broker’s income, including location, years of experience, market conditions, and whether the broker is independent or employed by a firm. Brokers working in high-demand areas or specializing in commercial or luxury real estate tend to earn higher commissions. Those who build a strong referral network or partner with multiple lenders also tend to outperform the average.

For individuals with technical and organizational skills—like those who hold the cheapest online construction management degree—transitioning into mortgage brokerage can be both strategic and financially rewarding. The ability to understand property values, timelines, and risk assessments can significantly increase a broker's efficiency and earning potential.

Whether you’re looking for a career that offers flexibility or aiming to scale a brokerage firm, the earning potential is one of the strongest incentives for entering the field. With the right skills and strategy, many brokers exceed the national average within just a few years of practice.

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Which cities pay mortgage brokers the most?

Location plays a significant role in a mortgage broker’s income. Brokers working in high-demand urban markets often earn well above the national average due to higher property values and transaction volumes. According to Indeed, these cities currently offer the highest average annual salaries for mortgage brokers:

These figures reflect local market conditions, cost of living, and the availability of real estate financing opportunities. For aspiring brokers who are flexible with location, moving to one of these metros can significantly boost earning potential.

Professionals with creative backgrounds—such as those exploring careers to pursue with a graphics design master’s degree—may find the mortgage industry’s blend of analytical work and client service a surprising yet viable career switch, especially in these high-paying cities.

Are mortgage brokers in demand in 2025?

The demand for mortgage brokers continues to grow steadily. According to Zippia, approximately 12,600 new mortgage broker positions are expected to be created by 2028. This indicates a stable and expanding job market, with a projected growth rate of 4% over the decade.

Several factors are contributing to this demand: 

• Increased homeownership rates
• Ongoing property development
• A growing number of borrowers seeking professional help to navigate complex mortgage options 

Currently, there are 25,510 mortgage brokers employed in the US. As the market evolves, so does the need for brokers who can offer specialized services and build trust with clients.

How is technology transforming the mortgage brokerage industry?

Digital tools are rapidly reshaping the mortgage brokerage landscape by streamlining client interactions, enhancing data analysis, and improving compliance processes. Brokers are increasingly using automated underwriting software and cloud-based platforms to not only speed up the loan process but also provide more personalized services. This technological shift offers opportunities for leveraging predictive analytics and digital communication channels, which can lead to more efficient lead generation and customer retention strategies. To remain competitive, professionals are encouraged to continuously update their digital skill set and explore academic resources such as the cheapest online masters in finance degree that focus on integrating technology with financial expertise.

What are the advancement opportunities for mortgage brokers?

Mortgage brokers have several career advancement paths, many of which depend on experience, specialization, and business acumen. Here are a few of the most common growth routes:

• Senior Broker or Team Lead – After gaining experience, brokers can move into leadership roles, managing junior brokers or handling high-value clients.
• Mortgage Brokerage Owner – Ambitious brokers may establish their own firms, giving them full control over operations, branding, and client relationships.
• Real Estate or Financial Advisory Roles – Brokers with additional certifications or licenses can transition into adjacent sectors like investment advising or real estate consulting.
• Specialization in Niche Markets – Working exclusively with VA loans, commercial properties, or luxury real estate can also increase income and market value.

Pursuing additional education, such as a master’s degree or certification in financial planning, can help professionals access these higher-level opportunities more quickly.

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How can I optimize operational efficiency to boost my competitive edge?

Mortgage brokers can gain a decisive advantage by scrutinizing and refining their internal processes to reduce turnaround times and improve client satisfaction. Implementing robust project management practices helps to streamline tasks—whether it’s loan processing or compliance monitoring—ensuring that every client interaction is handled efficiently and accurately. Investing in digital tools that facilitate real-time data analysis and lead tracking can lead to more informed decision-making and timely responses to market changes. Additionally, enhancing your strategic planning with focused education, such as fast track online project management bachelor degree programs, promotes skills in resource allocation and operational agility, providing the competitive edge necessary in a dynamic market.

How do you start a mortgage brokerage in 2025?

Starting a mortgage brokerage in 2025 involves several key steps and legal considerations. Here's a simplified breakdown:

1. Gain Experience and Licensing – Before launching your own business, you’ll need to be a licensed mortgage broker with a solid understanding of state and federal regulations. This includes completing pre-licensing education, passing the NMLS exam, and registering with your state’s regulatory agency.
2. Choose a Legal Structure and Register the Business – Decide whether your business will operate as a sole proprietorship, LLC, or corporation. Register your business name, obtain an EIN from the IRS, and meet your state’s legal requirements.
3. Secure a Mortgage Broker Bond – A broker bond protects clients in the event of legal disputes or financial mismanagement. It's a requirement in most states and adds credibility to your practice.
4. Obtain the Proper Licenses and Approvals – Apply for a mortgage broker license through the NMLS, submit background checks, and verify your business complies with local regulations. You’ll also need to demonstrate financial solvency.
5. Build Your Network – Establish relationships with lenders, real estate agents, title companies, and financial advisors. These connections help drive referrals and broaden your reach.
6. Set Up Technology and Tools – Choose a secure loan origination system (LOS), create a website, and implement CRM tools to manage client relationships and automate workflows.

What is the difference between a mortgage broker and a loan officer?

Although mortgage brokers and loan officers both help clients obtain financing for real estate, their roles and affiliations differ significantly.

• Mortgage Brokers act as independent intermediaries between borrowers and lenders. They don’t represent one financial institution—instead, they shop around to find the best rates and terms from multiple sources. Their independence often allows them to offer more customized options to clients.
• Loan Officers, on the other hand, work directly for a specific bank or credit union. They specialize in home loans and other real estate financing but are limited to the loan products offered by their employer. According to the US Bureau of Labor Statistics (BLS), loan officers frequently focus on both residential and commercial properties and often seek out clients by building relationships with real estate firms and other referral networks.

In short, mortgage brokers offer more flexibility and a broader range of options, while loan officers provide streamlined access to their institution’s lending products. The right choice often depends on the borrower’s needs and preferences.

What do mortgage brokers say about their career journey?

Becoming a mortgage broker gave me the freedom to run my own business while helping families achieve homeownership. Every closing feels like a personal victory—it's deeply rewarding to see clients get the keys to their dream home. I started with zero industry experience, but mentorship and consistent learning helped me thrive. Now, I get to be part of one of the biggest milestones in people’s lives, and that never gets old. Samantha

I transitioned from banking to brokering to have more control over my income and work-life balance. It’s a challenging path, but the learning curve sharpened my negotiation skills and deepened my industry knowledge. Working with diverse clients taught me the value of clear communication and creative problem-solving. I’ve built lasting relationships with lenders and clients alike, which has fueled both my business and personal growth. Raymond

When I started, I never imagined I’d grow from handling a few local loans to managing a statewide client base. The trust I’ve built with realtors and repeat clients makes all the hustle worthwhile. The job keeps me on my toes, but every day brings a new challenge and a chance to make a difference. It’s more than just numbers—it’s about guiding people through life-changing decisions. Elena

Can an advanced degree like an MBA optimize my brokerage strategy?

For mortgage brokers aiming to transition from operational roles to strategic leadership, an advanced degree offers critical insights into business management, risk assessment, and market innovation. Integrating these competencies with industry expertise can lead to improved client engagement and streamlined operational processes. Consider exploring resources like the fastest online MBA to further enhance your strategic skill set and competitive positioning.

Key Findings

• The average annual income for mortgage brokers in the US is $173,041, including commissions and bonuses.
• Approximately 12,600 new positions are expected to be created by 2028, with a projected growth rate of 4%.
• There are currently 25,510 mortgage brokers employed in the U.S. (Zippia, 2025).
• 64% of mortgage brokers in the US hold a bachelor’s degree.
• The top-paying city for mortgage brokers is Southfield, MI ($170,345 annually).

Other Things You Should Know About Becoming a Mortgage Broker

Is it hard to start as a mortgage broker?

Getting started in the mortgage industry can be challenging, especially because it takes time and experience to fully understand the ins and outs of loan products. Having guidance from an experienced professional who has already navigated the field can significantly speed up your path to success.

The learning curve is steep, with regulations, lending processes, and client expectations all requiring your full attention. But with dedication and the right mentorship, you can build confidence and momentum faster than going it alone.

What is the disadvantage of being a mortgage broker?

One downside of working as a mortgage broker is the unpredictability of income. Since your earnings often depend on commissions, periods of low market activity or fewer client referrals can directly impact your financial stability. Additionally, managing multiple lender relationships and keeping up with industry changes can be time-consuming. It requires strong organization and constant learning to stay competitive.

How do I introduce myself as a mortgage broker?

When introducing yourself, start by stating your name and your role as a mortgage broker to make your position clear. Then, briefly explain how you can help—focus on what makes your services valuable or unique, so potential clients immediately understand the benefits of working with you. Confidence and clarity are key—avoid jargon and speak in terms your client can relate to. You want your intro to be memorable, helpful, and build instant trust.

How do you get clients as a mortgage broker?

To grow your client base, start by identifying your ideal customers and establishing a strong brand presence. Share helpful content, actively engage with your audience, and ask for referrals. Build relationships through networking events, real estate meetups, and local business groups. Over time, consistency and visibility will help establish your reputation and generate more leads.

References:

• BLS. (2025, April 18). Loan officers. BLS.
• Indeed. (2025, April 19). Mortgage broker salary in United States. Indeed.
• Research and Markets. (2025, January 6). Mortgage Brokerage Services Industry Report 2024-2033, Competitive analysis of JPMorgan Chase & Co, Federal National Mortgage Association, Wells Fargo, Fairway Independent Mortgage, & Rocket Mortgage. GlobeNewswire News Room. globenewswire.com.
• Zippia. (2025, January 8). Best colleges and degrees for mortgage brokers. Zippia.
• Zippia. (2025, January 8). Mortgage Broker Demographics and Statistics [2025]: Number of mortgage brokers in the US. Zippia.
• Zippia. (2025, January 8). Mortgage Broker skills for your resume and career. Zippia.