Comparing Mortgage Brokers to Realtors®
Mortgage brokers provide a service to real estate buyers in helping them prepare loan applications for a bank or lending institution. Realtors® also provide a service by showing real estate listings to prospective buyers. Below is a comparison of these two real estate careers along with some salary information, as well.
|Job Title||Education Requirements||Median Salary* (2022)||Job Growth** (2020-2030)|
|Mortgage Brokers||Bachelor's Degree preferred||$58,304||1% (loan officers)|
|Realtors®||High School Diploma||$52,019||4% (real estate sales agents)|
Sources: *PayScale.com, **U.S. Bureau of Labor Statistics
Responsibilities of Mortgage Brokers vs. Realtors®
Mortgage brokers often partner with Realtors® to help sell houses. Both of these professionals have to be licensed by the states in which they do business. On the one hand, mortgage brokers work the financial side of buying a house by helping as a liaison between the buyer and the people with the money. Realtors®, on the other hand, are experts at sales. They know the market, they have a variety of properties that possibly meet the buyer's needs, and they are available to show the homes when necessary.
Mortgage brokers have the education to sell the latest in home loan products to prospective home buyers. These men and women spend many hours collecting financial information from borrowers which will help them in preparing the paperwork they will provide the underwriters. Mortgage brokers may help with writing credit history, collecting credit reports, and filling out loan applications. The broker may act as the buyer's representative in negotiations with banks, credit unions, or home lenders.
Job responsibilities of a mortgage broker include:
- Working with a variety of lenders for clients
- Questioning prospective buyers closely to create a proper financial history
- Collaborating with Realtors® to help with finding properties within client's price range
- Presenting financial profiles to lending institutions for clients
Realtors® belong to the National Association of Realtors® and must be licensed by the state in which they sell homes. These agents are sales representatives and do not get paid until the loan on a house closes. These professionals can usually be found showing houses at all hours and may show many homes in a single day, depending on the buyer's goals. Realtors® take classes through local universities, colleges and community colleges and are required to then pass the licensing exam. In many cases, these institutions offer certificates and even associate's and bachelor's degrees in real estate.
Job responsibilities of a Realtor® include:
- Creating strong personal relationships with clients
- Advertising and networking with prospective buyers and agencies
- Keeping clients advised as to changing home prices and interest rates
- Holding open houses to advertise home and agency
Mortgage brokers, who are knowledgeable of their loan products in real estate, might be interested in becoming insurance sales agents to sell different types of insurance to people or organizations. Realtors®, who are expert home sales professionals, might find real estate appraisal a viable alternative to use their career knowledge in appraising home and property values.