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Mortgage Broker

About Startup Costs

The startup costs provided in this database include an approximate financial investment that will be needed to start the business. This is generalized information and should only be used as a yardstick to determine business startup costs. Your investment will vary based on factors such as equipment, transportation, licensing and permits, operating location, working capital and initial marketing and advertising budgets. Remember a successful entrepreneur is one who carefully researches and plans every aspect of a new business venture, including the financial investment needed to start a business and the working capital required to achieve positive cash flow.

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Business At A Glance

Mortgage Broker

Startup Costs: $2,000 - $10,000
Home Based: Can be operated from home.
Part Time: Can be operated part-time.

About

Franchises Available? Yes
Online Operation? Yes

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Help clients get the mortgages they need to purchase a home.

Business Overview

Help people fulfill their dreams of home ownership by becoming an independent mortgage broker. The primary function of the mortgage broker is to bring together people who want to borrow money to buy real estate, with lending institutions that advance funds for the purpose of real estate purchases. It should be noted that the rules and policies for obtaining a mortgage broker's license differ among states and provinces, but you can contact the associations listed to find out about training and licensing requirements in your area. Once a mortgage broker has received an application from a client and checked credit and work references, the next step is to send the application to one or more lending institutions for acceptance or rejection. Mortgage brokers are typically paid a commission by the lending institution that advances the mortgage funds, ranging anywhere from a few hundred dollars to thousands of dollars, depending on the mortgage amount. Sometimes, however, in more difficult funding scenarios'second, third, or bridge financing, for instance'a mortgage broker will also charge the borrower a fee to cover the extra work involved in securing suitable financing. Most mortgage brokers handle finding residential mortgages for their clients, but you can also work with clients who want to renew their mortgages, increase their mortgage amounts, take out second or third mortgages, use equity for bridge financing, or purchase commercial properties, vacant land, income properties, or vacation properties. This is very much a business that thrives on referral and repeat business, so be sure to build working relationships with numerous real estate brokers and agents.

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