Mortgage and Loan Education

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Mortgage Broker Business

Written by Dana Hinders
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Mortgage brokers help make the dream of home ownership a reality for their clients. Starting a mortgage broker business can be a rewarding endeavor for stay-at-home moms or other individuals who need the benefits of a steady income and a flexible schedule. Requirements for mortgage brokers vary by state, so you'll need to make sure you meet all of the education and licensing restrictions before opening your business.

Previous sales and marketing experience can be helpful when starting your mortgage broker business. Strong communications skills and the ability to explain difficult financial concepts to clients are also valuable traits for self-employed mortgage brokers. Mortgage brokers often travel to meet clients in their homes or offices. They can work during normal business hours, or they can arrange to meet with clients on evenings and weekends. Mortgage brokers who are willing to accommodate a client's hectic schedule are in high demand.

Independent mortgage brokers find clients through traditional advertising and recommendations from previous clients. They make their money from commissions on the loans that they process. Some mortgage brokers are able to charge higher commissions because they specialize in helping clients with poor credit obtain loans.

Financial Issues for Self-employed Mortgage Brokers

When you run your own mortgage broker business, you will need to pay your own FICA, Social Security, and income taxes. You will also be responsible for your own health insurance and retirement savings. A qualified accountant will help you set up a bookkeeping system and take advantage of the many tax deductions available to self-employed individuals.

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