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Mortgage Broker Business Idea

This section will introduce you to the basic, high-level steps needed to become a mortgage broker:

- Research

- Implement

- Expand

Each of these topics will be discussed in the later sections.

Research is the most time-consuming step to be taken to become a mortgage broker. The research will seek to answer questions such as:

- Do you wish to operate as a single proprietor or as a corporation?

- What kind of mortgage broker training, licensing or certifications are required to become a mortgage broker in your state? What do you need to originate loans for clients in other states? Is there reciprocal licensing?

- What type of mortgages do you want to originate? Do you want to do commercial lending or operate as a home loan broker?

This will establish your target market. You should then decide if you want some real life experience, like a temporary position as a loan officer for a local commercial or residential institution.

- What services will you provide? Basic credit counseling? FHA loans? VA loans?

- Will you work exclusively over the Internet or will you want an office location? In either case, you should plan on having a strong Internet presence. Over 80% of home buyers begin their search on the Internet. If you decide you want office space, begin researching local commercial leases and even office condos.

- How much money do you want to make? How much money can you make?

You will need realistic financial goals to develop a business plan.

Become A Mortgage Broker – Implement

Implementation must begin with your business plan, especially if you wish to borrow startup capital. There are numerous software packages that can help a great deal with a business plan. This section will concentrate on one of the key sections of every business plan, the Implementation Plan.

The Implementation Plan will detail your strategy and tactics for achieving your stated goals. It will list, step by step, the tasks to be completed. Much, if not all of the plan’s content derives from your research. Here is a partial, sample implementation plan:

- Submit your business plan to lending institutions

- Set up your corporation

- Obtain necessary training, licenses, and certifications

- Lease the building or buy the office condo

- Buy or lease the loan software

- Hire the employees

- Join the local Better Business Bureau

Include contingency plans, where necessary. Many of the steps can be completed concurrently, rather than serially.


After you succeed and operate the business for a period of time, you will have learned the ups and downs of the business. You will have learned that some assumptions you made in your business plan were not correct. You will have achieved some goals, but probably not all.

In any case, the experience will have been most valuable for you in planning for expansion. Expansion may be geared toward increasing your business or merely achieving goals you had not met initially.

First, you should eliminate any programs or services that did not meet expectations. Expand areas that were successful and make them more successful. Here are some ideas:

- Assuming you have a web site, the best way to obtain more mortgage broker leads is to improve the web site itself and improve the site’s visibility to the search engines. Pay per click is the quickest way to improve search engine visibility.

- Improve your networking, especially with real estate companies and real estate agents. Handshake agreements with individual agents can pay real dividends. Send leads to agents and they will send leads to you. Strategic alliances with real estate companies can provide you with relocation leads.

- Form strategic alliances with builders. Try to become their preferred lender. This is an important if you want to become a mortgage broker.

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