Too good to be true??

[betterthanpink]

Hi, I'm so glad I came across this site!

I'm going to be a mortgage loan officer soon. I'm taking the 20hr class next week then my test the following week (i hope)

My question is.. I don't know which mortgage broker to go with.

Lets call the first company "A". They will take me in as a new person, they said all I need is my license and I will have to provide my own leads. They will do 50% commission split for the first 6 loans then after that I will close my own loans at 70% still providing my own leads.

Company "B" (is the one I am leaning towards) also would like me to join there team. The school is actually taught in there office, the lady is going to help me pass the test. She said that for the first 4 loans it will be a 50% split then after that I can still have her help and split it 50% or do it all on my own and I will receive 100% commission. There processing fee for each loan would be $500. out of my commission. And with this company I also have to provide my own leads.

These brokerages are right down the street from each other, I'm just wondering why one will give me 100% and the other 70%. Does company B sound to good to be true? After reading these posts I don't see anyone that is getting paid 100%?? The professionalism of both mortgages is equal..do you know what kinds of questions I should ask or is 100% normal? What "catches" should I look for?

Thanks.

[Troy]

Welcome to the forum!

I'll give you the 30 second version on my opinion, because I'm in a bit of a hurry right now.

Company B sounds like the better of the two. I'm really surprised that they will only charge you a processing fee after your first 4 loans. Ask them if there are any other fees involved, admin fee, desk fee, phone usage...basically anything they can nickel and dime you on. They probably offer you that deal because MOST loan officers are only good at badgering their family and friends for 4 or 5 deals and then they give up and go back to some kind of hourly wage job. That way the company makes some good money off of your first few deals and you're probably going to leave the biz anyways.

The other alternative (and the one I recommend) is find a larger company that provides leads even if you're only going to get a meager 30-40% split. Find one that will train you well and see if you can be mentored by one of the company's top producers. Learn your programs, marketing, and the business completely on their dollar! After several months to 2 years of that, then break away on your own at a 100% company. The education and steady leads will pay you dividends later!!!!

Let me know if you have any questions.

Troy

[Kontradictive]

I'm not the bandwagon type, but Troy said it best.

It's really worth your time to find the company that will train you and provide you with leads. As far as the options that you mentioned, Company A seems straight forward, while Company B doesn't make much sense. (likely that there are more fees, again, like Troy said)

When someone else says it best; then don't try and resay it. Put me down as agreeing with Troy 100% (on this topic).

Good luck in your search!

[Troy]

I'm always a fan of people who agree with me!

Welcome to the forum Kontradictive

Troy

[NJloans4you]

Just curious~ I wonder how many LOs process there own loans? Or can they process there own loans? I was thinking of opening a processing company. i am a loan officer in NJ. I processed for years. Actually liked it. I want to originate my own loans and process them. You think it is doable??