An independent mortgage broker is a business owner who works alone or with a team to originate home loan approvals for borrowers from wholesale lenders. One of the reasons it’s great? Your success is relationship-driven and determined by your passion and enthusiasm. If you think you might be interested in starting your own business as an independent mortgage broker, read on to learn the five top things you should know:
- HOW TO GET STARTED
To work as a mortgage broker, you must be registered with the National Mortgage Licensing System and Registry (NMLS). You’ll need to complete 20 hours of pre-licensure education courses and pass the NMLS mortgage license exam, in addition to other requirements determined by your state.
Once these requirements are fulfilled, you’ll be able to sign up with mortgage lenders and start taking in loans. Some other important steps you’ll need to take:
• Choose a business name. Be sure to register your name in the state(s) where you plan to do business
• Set up your business entity. There are several types to choose from: sole proprietorship, LLC, partnership and more
• Open a business account. Find the financial institution that fits you best
• Set up digital tools. Having the right tech tools is key to your success
Read this great article for more-detailed information on each step.
- THE SKY’S THE LIMIT
Becoming an independent mortgage broker offers a multitude of benefits — including freedom, flexibility and unlimited earning potential. As a business owner, you’ll decide your work-life balance and how many loans you want to take in each month. Depending on your financial goals, you might decide you want to start as a side business with only referrals, or you may want to commit full time.
- TIPS TO GAIN (AND SUSTAIN) BUSINESS
There are multiple ways to get business as a new mortgage broker. Getting involved in the community is a great way to meet people and get your name out there. Attend local festivals, host a booth at a community event or sponsor a local youth sports team to begin establishing a presence as your community’s go-to mortgage expert and meet as many people as possible.
Once you have helped your first few borrowers who you’ve wowed with your service, you’ll start getting referrals from them as they tell others about the great experience they had with you. Referrals are a reliable way to sustain and grow your business, since people like to follow word-of-mouth recommendations from a trusted source.
A great way to earn referrals is by building relationships with real estate agents. Homebuyers often go to their real estate agent for guidance, including how and where to get pre-approved for a mortgage. By cultivating relationships with these agents, your loan pipeline can stay full throughout the year. These relationships work best as a two-way street, so remember to send referrals their way as well!
- YOU DON’T HAVE TO GO SOLO
When you become an independent mortgage broker, you may be in business for yourself, but that doesn’t mean you have to do it all alone. Working in the wholesale mortgage industry means creating partnerships with wholesale lenders who can provide you with training, tools and technology to help grow a successful business.
As your business grows, you can add loan officers, loan officer assistants, processors and others to your team who can give you valuable assistance with the loan origination process. You are in control of how small or large you’d like your business to be.
- TAKE ADVANTAGE OF THE EXPERTS
Transitioning into a new career can seem daunting, but it doesn’t have to be. The wholesale mortgage industry is full of people who have been in your shoes and are willing to help. For starters, consider joining communities like the Association of Independent Mortgage Experts (AIME) to network with other independent mortgage professionals. This group is all about growing the wholesale mortgage industry and can provide you with support and connect you with other mortgage brokers around the country.
Not quite ready to open a new mortgage brokerage?
Being an independent mortgage broker offers a fulfilling blend of independence and a flexible work schedule. However, if you’re not looking to start your own business right now, or want more experience before you do, you may also be interested in starting as a mortgage loan officer. Mortgage loan officers are representatives of independent mortgage brokerages that originate home loan approvals for borrowers and often facilitate the process from approval through closing.
There are plenty of opportunities available in the wholesale mortgage industry. Are you ready to jump-start your mortgage career? Our team at BeAMortgageBroker.com is here to help you every step of the way.
