How to Start a Mortgage Brokerage Firm

Mortgage brokerage firm owners are responsible for originating loans for a variety of financial institutions. For each loan originated, the financial institutions pay the mortgage brokerage an agreed commission. However, to launch a mortgage brokerage firm business, you must earn the required experience or education and get certified in your state. Plus, you'll need to secure office space and a business license from your city.

Suggestions

1. Earn your bachelor's degree. Most states require that mortgage brokers have a bachelor's degree in finance or related field. In some states, an exception will be granted for comparable mortgage industry experience. Since each state is different, check with your state department of insurance.
2. Apply for your mortgage broker license. Before opening the doors to your mortgage brokerage firm, you must be licensed. Every state has different guidelines for independent mortgage brokers, but many require that you complete a pre-licensing course and pass a state exam. To find out your state's qualifications, check with your state department of savings and mortgage lending.
3.   Choose a location for your mortgage brokerage firm. This type of business doesn't require much space (typically 1,000 square feet or less). Contact a leasing agent in your area, and schedule a time to view potential office space. Choose a location that gets a decent amount of street traffic (for marketing efforts) and is close to other financial institutions. You'll also need to purchase some basic equipment for your office, including a computer, desk, office phone, small table for signing documents and extra chairs for clients.
4. Apply for a business license. Once you've secured your office space, visit your city hall and apply for a business license. It typically takes a couple weeks to process your application.
5. Contact financial institutions about selling their products. Contact financial institutions such as Bank of America, US Bank and smaller community banks and ask about selling their products. You typically need to sign an independent mortgage agreement and show proof of state licensure.

Tips

• Consider earning your certified mortgage banker designation. The benefit of this designation is potential clients may view you as more creditable. After gaining three years of experience as a mortgage broker, you can apply to take an exam with the Mortgage Bankers Association (see Resources).
• Devote time to marketing daily. Participate in new home buyer fairs and any other community events to aggressively market your services. Also, join your chamber of commerce to network with other business owners.

______________________

Custom Office Supplies

Office Memo Pad (Red)

Office Memo Pad (Bright Yellow)

Weekly To Do List Notepad (White)

Iridescent Pearl Finish Business Card Template

Eggshell (Textured) Business Card

French Linen Business Card Template (White)

Real Estate Agent Business Card (White Linen)

Sorry, there are no results.

Weekly Planner Notepad (White)

Weekly To Do List Notepad (White)

Phone Message Pad