Mortgage Brokering – A Fantastic Small Business

mortgage brokerage business idea
Mortgage brokering

Are you looking to start your own business? Sure, there are many options to choose from, but one that makes a fantastic small business is a mortgage broker. A mortgage broker works as a middle man between the banks and individuals seeking to get a mortgage. Mortgage brokers fill an important need as many banks do not deal directly with individuals.

Benefits of Working as a Mortgage Broker

Working as a mortgage broker offers an individual many benefits to make self-employment more attractive including:

Flexible schedule. You will not be working the typical 9 to 5, but will instead set your own hours. However, be advised that you may need to work some nights and weekends.

Ability to grow your own business. How large and profitable your business grows will be directly related to the hours you put in and the contacts you make. You can work as many hours as you would prefer, whether that be 30 hours or 60, and your business will grow correspondingly.

Low overhead. Compared to many other small business endeavors, a mortgage broker has relatively low overhead, which means more profits go directly to the business owner.

Option to work from home. Many mortgage brokers set up shop right from their home. However, as your business grows, you may need to get an outside office and hire additional help.

Typical Tasks of a Mortgage Broker

A mortgage broker does many tasks similar to that of a loan officer at a bank, but unlike a loan officer, they are not directly employed by the bank. Some of the typical tasks of a mortgage broker include:

– Advertise and market to find clients

– Gather clients’ financial information and assess their financial situation

– Determine clients’ needs, for instance, are they looking for a mortgage or a refinance loan?

Compare home loans to determine the right fit and the best loan for the client

– Gather all relevant paperwork from the client and help them fill out the application

– Submit the application to the lender

Characteristics of a Mortgage Broker

Successful mortgage brokers have several characteristics in common including:

A love of working with people. Your job will involve interacting with both clients and bank employees on a regular basis, so you should be a people person.

A self-motivated person. Your income and commission is directly related to your work ethic and motivation.

A good marketer. Your marketing efforts will bring you more business, so you must feel comfortable promoting yourself.

A job as a mortgage broker makes a fantastic small business that you can run out of your home. The job offers flexibility and the possibility to earn a good income. If you are looking to start a small business, this is a job to consider.