If you’ve ever liked the idea of being your own boss, setting your own hours, building your own client list and retaining your own commissions, then starting a business may be the right career move for you. Starting your own mortgage brokerage business is exciting and offers many opportunities to work with different people and with different properties. Setting up takes some organization and careful planning with logistics, but with our simple step by step, you could be up and running in no time, helping buyers to secure their dream homes and doing what you do best.
Step by Step Guide to Starting a Mortgage Loan Business
Step 1: Take the Pre-Licensure Program & NMLS Test
All mortgage loan officers need to be licensed in order to sell mortgages to clients. A 20-hour Pre- Licensure Class is mandatory. This program covers financial regulations, loan ethics, federal and state law, and a variety of in-depth topics around mortgages. Following the class, there is a national test that you must pass called the SAFE Mortgage Loan Originator Test, which also includes a specific portion related to your state of trading.
The class and test are both governed by the National Mortgage Licensure System. Upon passing the test, you can begin brokering mortgages.
Step 2: Acquire your Mortgage License
A mortgage license will be needed for you to start trading as a business. This license should be obtained through the same state office that handles real estate business. A local search on your state’s government website should help direct you to the right place for your location and ensure you get the correct license to legally trade in this industry. There are varying requirements for each individual state, which include education, experience and physical office locations, so be sure to check you meet all of the requirements and that you’re able to provide supporting evidence, where necessary. There is also a non-refundable fee for a license application which should be taken into consideration when putting together your projected costs.
Step 3: Establish your Business Location
Whether working from a brick and mortar location or working online, you need to ensure that everything is setup and ready for you to do business. If renting or buying an office location, make sure that all of the required paperwork is completed, and the office is setup to welcome clients into your business space and present them with a professional and welcoming environment. If you plan on trading online, be prepared to visit clients in their homes and include travel times and budgets to your projected costs and day-to-day planning.
Step 4: Finalize your Business Structure & Register your Business
Once you have the foundations in place, it’s time to determine your business structure and register your business name. This is also a good time to buy the domain name for your online presence, even if you’re not ready to build a website yet. This step should also include registering for tax, business bank accounts and credit cards, where needed, and ensuring your business is fully insured.
Step 5: Get your Connections in Order
You won’t be able to go it alone in the mortgage industry. You will need to build connections with real estate agents, mortgage lenders, consumer credit report vendors and, of course, clients. Ensuring you have a solid Mortgage CRM will help you to manage all your relationships and stay on top of your communications, remaining professional and punctual at all times, even if you’re feeling overwhelmed at this stage. Take your time to select your partners and work with them to build your offering for your clients so you have the best deals and solutions available, setting you off on a good grounding for building your business.
Step 6: Find your Voice in the Industry
Finding your voice in the mortgage business is all about creating a solid marketing plan and building your brand as expert. Being personable and ensuring you stand out from the crowd will set you apart from competitors and allow you to gain a personality as a business, as well as a mortgage lending expert. Building, growing and nurturing your partnerships and client lists will ensure you gain and maintain a strong reputation in your area and, in turn, attract more business. You also need to make sure you have the right tools to support you in your business evolution to keep everything streamlined and process working efficiently.
We have a range of tools here at FocusIT Inc to support you on your journey and we will be sharing more posts around marketing your business and helping you to grow.
What would be most helpful to support you on your way next? Join the discussion below and we will make sure we provide all the information we can to help you build a successful mortgage business.
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