Setting up your small business as an independent mortgage broker is no small feat. And to be successful, you need to lay the groundwork before you can start taking on clients. While it can seem overwhelming at first, we’re here to help you every step of the way.

If you’re currently working as a retail broker or independent mortgage broker and are thinking about how to start a mortgage company, read on for steps to take to get your business up and running.

 1. Choose a business name

First things first: You’ll need to choose a business name and register it with the state(s) in which you plan to do business. It’s also a good idea to check if the URL you’d like to use for your website is available before choosing a business name.

2. Set up your business entity

You’ll need to set up your business entity, which essentially means setting up a business organization to conduct business, and determine what type of entity is best for you. There are several types to choose from, including a sole proprietorship, LLC, partnership and more. This will determine your tax eligibility and will also help you establish the processes for how your business will operate.

Make sure you do your research and consider the advantages and disadvantages of each type of business entity before you make a decision.

3. Open a business bank account

This one seems simple, but you’ll want to make sure you do your research and find the best place to set up a business account and/or a trust account. Whether it’s with a credit union, a small community bank or a large national bank, it’s important to know your options.

4. Set up your company profile in NMLS

When opening your own brokerage, you must maintain a single core record in NMLS through the Company Form (MU1). The licensing process is completed by submitting coordinated filings through NMLS and responding to regulatory requests.

For additional details on the NMLS registration process, you can check here or reach out to our team at info@mortgagebrokerx.com to walk you through the process.

5. Set up your mortgage origination system

Having the right digital tools set up and ready to go is imperative to the success of your business.

You’ll want to look into a loan origination system (LOS), which will be essential for originating and processing loan applications, as well as customer relationship management (CRM) software, which can help you stay in touch with your past clients and referral partners. It’s also important to have point-of-sale (POS) software to help automate loan applications and speed up parts of the mortgage process for your clients.

6. Sign up with mortgage lenders

One of the biggest advantages of being an independent mortgage broker is the freedom to shop around with multiple lenders to ensure you get the best loan for your client’s needs. A general rule of thumb is to find at least three lenders to work with who can collectively handle the types of loans you might be focusing on — or that your clients might need down the road (e.g., VA, FHA, new construction, etc.).

Some other important things you’ll want to consider when choosing lenders to work with: What technology do they offer? How’s their service and speed? Do they offer a wide variety of loan products?

 The wholesale mortgage industry is an incredible space to be in, and the fact that you’ve decided to take the leap to open your own brokerage is something to be proud of.

Ready to get started?

If you’re ready to take the next step in your career and open your own wholesale mortgage brokerage, our team will customize a step-by-step plan to help guide you through the process. Email us today at Info@MortgageBrokerX.com or click “Get Started”.