Business At A Glance
Startup Costs: $2,000 – $10,000
Home Based: Can be operated from home.
Part Time: Can be operated part-time.
Online Operation? Yes
Help people fulfill their dreams of homeownership by becoming an independent mortgage broker. The primaryfunction of the mortgage broker is to bring together people who want toborrow money to buy real estate, with lending institutions that advancefunds for the purpose of real estate purchases.
It should be noted thatthe rules and policies for obtaining a mortgage broker’s license differamong states and provinces, but you can contact the associations listedto find out about training and licensing requirements in your area.Once a mortgage broker has received an application from a client andchecked credit and work references, the next step is to send theapplication to one or more lending institutions for acceptance orrejection.
Mortgage brokers are typically paid a commission by thelending institution that advances the mortgage funds, ranging anywherefrom a few hundred dollars to thousands of dollars, depending on themortgage amount. Sometimes, however, in more difficult fundingscenarios’second, third, or bridge financing, for instance’a mortgagebroker will also charge the borrower a fee to cover the extra workinvolved in securing suitable financing. Most mortgage brokers handlefinding residential mortgages for their clients, but you can also workwith clients who want to renew their mortgages, increase their mortgageamounts, take out second or third mortgages, use equity for bridgefinancing, or purchase commercial properties, vacant land, incomeproperties, or vacation properties. This is very much a business thatthrives on referral and repeat business, so be sure to build workingrelationships with numerous real estate brokers and agents.