If you want to take advantage of the real estate boom in your area you may want to consider entering a career in real estate. One real estate career that is always in demand is that of a mortgage broker.
How to Become a Mortgage Broker
Learn what a mortgage broker is. A mortgage broker is a real estate professional who has training in real estate financing and who is able to effectively find mortgage programs for their clients, help them through the application process, and who can help their clients finance the home of their dreams.;
Learn about your state’s laws and regulations for being a mortgage broker. Each state will have its own set of rules and regulations that will govern if you need a license to be a mortgage broker, what loan products you can offer, and if residency is required. To find out what laws, rules, and regulations your state has for becoming a mortgage broker you will need to access your state’s government website. You will probably be able to find the information that you need under the business licensing section of the site. If you can’t find the information that you are looking for there, try using the site’s search engine, and if that fails use the contact information provided on the site to call or email your state’s government for more information on the state’s requirements for becoming a mortgage broker.;
Read through all of the information that you find on your state’s rules for becoming a mortgage broker. You want to especially look for licensing requirements and any restrictions on what loan products you can offer to your clients.;
Take steps to meet licensing requirements for your state, if applicable. If your state requires you to be licensed in order to be a mortgage broker you will need to meet the preliminary requirements set out by your state. In some states this will mean taking real estate courses and an examination, while in others it is as simple as paying an application fee and submitting an application. Make sure that you have met all of your preliminary requirements before you submit your application for licensing.
How to Set Up Your Mortgage Brokerage
Find mortgage programs that you can offer to your clients. Before you can sell mortgages you will need to develop relationships with a variety of lenders and set up an affiliation with these lenders.;
Get an employee identification number. Form SS-4 is the IRS form that you will need to fill out and submit to get your EIN. This number can be used for banking or for making employment tax deposits.;
Get bonded. Some states will require that you are bonded for amounts that are in proportion to the amount of loans you plan on selling. Check with your state to see if this is a requirement or if it is optional.;
Find a location for your business and set up shop.;
Get insurance. Make sure that you have all of the necessary business and liability insurance that you need to protect yourself. Contact a local insurance agent that specializes in business insurance needs to put together an insurance package that is right for your situation.;
Set up bank accounts. You will need to set up a business bank account to handle your business’ cash flow. Look for a bank that offers the service and fee structure that you want.;
Set up an accounting system. This system will track your revenues, expenditures, assets, liabilities, cash, work-in-progress, etc. An accurate accounting system will help make things much easier at tax time.;
Develop your marketing strategy. You can utilize professional services to market your business or you can do it yourself. There are a lot of books on this subject that you can read to get ideas.;
Hire support staff, if needed.;
Implement your marketing campaign.;
Maintain your professionalism. Word of mouth is going to be your best marketing tool. Because of this you want your clients to have the best experience with you as possible. Be courteous, return calls in a timely manner, charge reasonable fees, and be as helpful as possible.
Identify who you should talk to in your state government about licensing issues.;
Don’t be afraid to ask questions about mortgage broker licensing requirements.;
If you don’t want to set up your own mortgage brokerage you can try to get a job as a mortgage broker at a local mortgage brokerage.
Don’t try to sell mortgages without first determining what your state requirements are.;
The stability of this job will depend greatly on your area’s real estate market.;
This position will take a lot of leg work, paperwork, and time.
Mortgage broker requirements for the state of California can be found at http://www.corp.ca.gov or at http://www.dre/cahwnet.gov.;
Mortgage broker requirements for the state of Florida can be found at http://www.flofr.com/licensing.;
Mortgage broker requirements for the state of New York can be found at http://www.nyamb.org.;
Tax forms and EIN registration can be found at http://www.irs.gov.