Independent mortgage agents use their problem-solving talents and communication skills to yield large profits. As an entrepreneur who possesses these qualities, you could earn a decent living by becoming an independent mortgage agent. If you choose to pursue this venture, you could end up establishing your own mortgage broker company. You can offer numerous services regarding interest rates, mortgage loan products analysis and terms. To profit off of this entrepreneurial opportunity, read on and learn how to become an independent mortgage agent today.
Meet Education Requirements
In order to become an independent mortgage agent, you need to meet education requirements. If you do not have your high school diploma, you need to obtain it before moving forward. Those who have completed their high school education have met the minimum education requirements to become an agent. However, the most successful agents take other steps to improve their skills and knowledge of the industry. If you want to increase your chances of dominating the market, consider taking relevant courses. You can do so online or attend in-person classes. Such courses typically include computer use, research skills and math topics. The best agents learn about reverse mortgages and payment options as well. Receive as much education as you can to succeed as an independent mortgage agent.
Take The SAFE Exam
After you meet the education requirements, take the SAFE Mortgage Loan Originator exam to become an independent mortgage agent. The test includes two parts. One half is the National component and the other is the State component. While the National component remains the same for every prospective mortgage agent, the State component differs. Thus, you need to take the test created for the state you wish to conduct business in. Upon passing both parts of the exam, apply for your mortgage agent license through the NMLS. You need to obtain your license to begin working as an independent mortgage agent.
Calculate Startup Costs
Once you get your independent mortgage agent license, calculate your startup costs. After all, obtaining your license does not guarantee you career success. To create a successful future for your business, list all of your expenses. Consider the cost of opening a location. Determine how much capital you will need to spend to develop a website. Decide how many employees you need and how much you should pay them. After writing up your list, eliminate any unnecessary expenses. Then, establish a budget to stick to. Consider hiring HR for startups and add them to your budget as well. Agents who startup their companies without going over budget set themselves up for a successful entrepreneurial venture.
Register Your Company
Another crucial step to becoming a successful independent mortgage agent is to register your company. To begin doing so, choose a business entity. It can be difficult to choose between the numerous entity types. Consider how much you want to expand your company in the future. The number of owners also affects your options for a business entity. You can choose from sole proprietorship, partnership, limited liability company (LLC) and corporation. After choosing your entity types, name your company and get an Employer Identification Number (EIN). Then, you can legally register yourself as an independent mortgage agent.
Choose A Location
In addition to the above steps, choose a location for your mortgage agent business. Some independent mortgage agents prefer to conduct business online. However, many states do not allow mortgage agents to conduct business on an online-only basis. Therefore, you need to look into your specific state’s requirements before deciding on a location as well. Also, consider what clients prefer. If you fear that you might not retain clients working remotely, opt for an office space. There, you can conduct in-person meetings and work remotely as well. You can also find more prospective clients who need your assistance. Inform them about mortgage protection insurance and other necessary tasks. Choose a business location that best fits your independent mortgage agent goals to accomplish them.
You can maintain a positive cash flow by becoming an independent mortgage agent. To do so, obtain your high school diploma and expand your knowledge by taking other relevant courses. Then, take both parts of the SAFE exam until you pass. Calculate your startup costs and establish a realistic budget to refrain from falling into debt. Once you have a clear budget set, register your company so that you can conduct business legally. Lastly, decide whether you want to operate online or in an office. If you follow these steps, you will achieve your goal of becoming a successful independent mortgage agent.