Real estate agent vs. mortgage broker: overview
Real estate agents and mortgage brokers have similar job characteristics. As licensed professionals in the real estate industry, they both help their clients acquire residential or commercial properties. But their specific functions are quite different. A real estate agent helps buyers and sellers acquire or sell a physical property, while a mortgage broker helps buyers obtain financing to buy a property.
Key takeaways
- Real estate agents bring buyers and sellers together; mortgage brokers bring buyers and lenders together.
- Depending on the person they represent, real estate agents help their clients buy or sell a property, while mortgage brokers help their clients obtain financing for the property.
- Mortgage brokers should study credit reports and loan agreements; Real estate agents are less involved in financial data (aside from purchase prices).
- Both jobs may require working nights and weekends; compensation for both occupations is based on productivity.
- Both positions require obtaining the correct state license to practice and keeping the license current through renewal and additional education and testing.
Real estate agent
Because the real estate industry can be extremely competitive, if you want to be a real estate agent, an outgoing personality, a desire to be helpful, maturity, and dependability are essential qualities. A residential real estate agent must be able to present a home and sell the features it offers in a pleasant way. A creative asset in design and detail is a major asset in this profession.
Depending on whether an agent is acting on behalf of a buyer or a seller, the following responsibilities are typical:
- Show properties and houses
- Find premises and homes for sale or buyers
- Negotiate between them and act as a buyer-seller link.
- Follow the local real estate market
- Provide financial guidance (in some cases)
You may have sales or marketing experience and at least a high school diploma in qualifications to become a real estate agent. All real estate agents must be licensed. Depending on the state and agency, additional education in finance and housing laws may be required.
The job often requires many hours and many days to show unsold homes or commercial properties to potential buyers, so patience is essential as well. If you want events to go quickly and require a weekly paycheck, a commission-based real estate agent job may not be for you.
People with jobs or other obligations are often busy during the day and hunt at night and on weekends. As a result, real estate agents must be willing to be available on short notice when their clients need it.
| REALTOR COMPENSATION | |
|---|---|
| Article | Compensation range |
| Salary | $ 24,000 – $ 101,000 |
| Cousin | $ 259 – $ 21,000 |
| Profit sharing | $ 989 – $ 49,000 |
| Commission | $ 2,000 – $ 184,000 |
| Full payment | $ 25,000 – $ 104,000 |
Compensation ranges in various categories are mentioned above, from PayScale.com to March 2020, the latest figures available.Numbers indicate average range. Some agents can earn less, others who are very good (and perhaps very lucky) can earn more.
Some agencies may pay a nominal salary weekly, weekly, or monthly, but most agents receive a commission after a sale, based on a predetermined percentage of the sale price. Profits as a seasoned realtor tend to increase.
A real estate agent can move from place to place during a normal business day, while a mortgage broker can spend most of the business day on the computer or on the phone in an office.
Mortgage broker
Mortgage brokers act on behalf of clients to find the best interest rate and terms for a mortgage for them, on a private residence or commercial property. An essential and ongoing part of a mortgage broker’s job to secure the best rates for a client is researching the interest rates and terms of the latest loans. Some brokers may develop relationships with preferred lenders, but a good broker will look out for their clients’ interests.
Given the key part of the job to get the best loan options for your clients, you must have a good understanding of lending institutions, rates, and loan terms. It is important that you are familiar with credit worthiness criteria and credit reports, as well as a good command of math, verbal, and writing skills.
Mortgage brokers must adhere to their clients’ schedules, and a unique and friendly personality can be of great help to clients. Being a mortgage broker often takes many hours and days to find a lender who is willing to work with the prospective borrower, so patience is essential in this area. This quality will also be of great use to brokers when they have to accept some rejections from lenders when trying to obtain a loan.
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What are the differences between a real estate agent, a broker, and a real estate broker?
| MORTGAGE BROKER COMPENSATION | |
|---|---|
| Article | Compensation range |
| Salary | $ 31,000 – $ 125,000 |
| Cousin | $ 1 – $ 20,000 |
| Profit sharing | $ 0 – $ 16,000 |
| Commission | $ 15,000 – $ 84,000 |
| Full payment | $ 30,000 – $ 141,000 |
Many mortgage brokers have a background in sales, marketing, or finance, especially banking. If you want to become a mortgage broker, you will need at least a high school diploma and license to get your broker. To do so, you need to take the AFE National Home Loan Developer Test and test the rules and regulations of the state you want to work in.
Mortgage brokers can earn a salary and additional compensation in the form of a commission based on a predetermined percentage of the secured mortgages. PayScale.com’s compensation for 2018, the latest information available, is listed in different categories below. Numbers indicate average range.Some runners can earn less, but more runners can earn more experience.
