Many people think a real estate agent or mortgage broker career is the same. But the truth is, they’re two very different fields. Sure, both jobs involve helping people buy homes, but that’s where the similarities end. So, which one is the better option?
The job of a mortgage broker is to help people secure loans to buy properties. They work with banks and other financial institutions to get their clients the best interest rates on their loans. Mortgage brokers also need to have a deep understanding of the market to advise their clients on how much they can afford to spend on a home, what kind of loan would be best for them, etc.
The Pros of Being a Mortgage Broker
- Highly-paying domain
- It’s a fulfilling career
- You have the potential to advance quickly
The Cons of Being a Mortgage Broker
- Stressful job
- You need to be good with numbers
- Risky compared to being a real estate agent
Career Path of a Mortgage Broker
To become a mortgage broker, you’ll need a bachelor’s degree in finance, business, or economics. You will also need to obtain a license from the Financial Industry Regulatory Authority (FINRA). After that, you can start working at a bank, mortgage company, or financial institution.
Most brokers start their careers at mortgage companies as they provide on-the-job training. They get to learn the ropes while working with experienced brokers. Most mortgage brokers start as loan officers and then move up the career ladder to become senior loan officers, loan managers, or vice presidents.
Alternatively, after gaining experience, some brokers move on to banks or other financial institutions. Either way, with hard work and dedication, you can have a successful career as a mortgage broker.
Earnings of a Mortgage Broker
As per Payscale.com, the median salary of a mortgage broker is $59,565 per year. However, the top earners in the field make upwards of $130,000 per year.
Real Estate Agents
The job of a real estate agent is to help people buy and sell properties. They are the middlemen between buyers and sellers, and their job is to ensure the process goes smoothly for both parties involved.
To do this, real estate agents need to understand the market deeply. They need to know things like median home prices, popular neighborhoods, and which areas are up-and-coming. They also need to be good at negotiating to get the best possible price for their clients.
The Pros of Being a Real Estate Agent
- You are in control of your schedule
- You can make a lot of money
- It’s a rewarding career
The Cons of Being a Real Estate Agent
- You have to work long hours
- It’s a competitive field
- You need to be good at sales
Career Path of a Real Estate Agent
Getting your real estate license is the first step to becoming a real estate agent. To do this, you’ll need to take a state-approved real estate course and pass the exam. Once you have your license, you can start working at a real estate firm or hang your shingle.
You can take on additional responsibilities throughout your career, such as becoming a broker or property manager. You can also specialize in a particular type of estate, such as commercial or luxury properties.
Earnings of a Real Estate Agent
The average real estate agent earns a commission of 5-6%. So, if you sell a $500,000 home, you can earn around $25,000. However, the more experience you have and the homes you sell, the more money you’ll make. Top-performing agents can earn much more than this.
As per Payscale.com, the median salary of a real estate agent is $49,299 per year. Thus, we can see that mortgage brokers earn a higher wage than real estate agents.
So, Which One Is the Better Option?
The answer to this question depends on what you’re looking for in a career. If you’re the type of person who is more interested in the buying and selling process, then a real estate agent career might be right for you. But if you’re more interested in the financial side, working as a mortgage broker might be a better fit.
There you have it—the difference between a career as a real estate agent and a mortgage broker. If you’re still unsure which one is right for you, it’s best to speak to someone already working in either field to get their insights.
The bottom line is that both careers can be gratifying. It just depends on what you’re looking for in a career. So, do some soul-searching and figure out which option is the best fit for you.