How to start a mortgage company

how to start a mortgage company

Things You'll Need

How to Start a Mortgage Company

Create your corporation. Your business entity can take many forms, including a sole proprietorship, LLC, S-Corp, or C-Corp. Choose the form most suited to your needs. Contact your state for formation guidelines and regulations.

Rent or purchase office space, equipment and supplies. If you plan to have clients meet you at your office, it's better to lease professional office space. If you're willing to meet your clients at their homes or other locations, a home office will work fine. Either way, you'll need a fax machine, computer, printer, internet access, phone, and standard office supplies.

Get licensed. Each state has its own licensing requirements. Check with your state's commerce department or similar regulatory agency to find their specific licensing requirements.

Get wholesale lenders. Now that you're licensed, you need wholesale lenders. The more lenders you have, the more loan products

you'll be able to offer your clients. Each lender will guide you through their specific approval process.

Vendor partners. Select your consumer credit report vendor, appraiser, and title/escrow settlement service provider. You need to find good vendors that you can trust, so do your due diligence, take your time and select them carefully.

Marketing. Now it's time to get some customers. Determine your marketing strategy and tactics. Generate referrals from family, friends, real estate agents and general networking. Market to consumers through internet, lead vendors, direct mail, telemarketing, sponsorships, yellow pages, print ads, trade shows, and more. Choose to do your marketing inhouse, outsource, or a combination of both.

Staffing. As your business grows, you won't be able to do everything yourself. You will need to hire and train Loan Officers, Loan Processors, and various other support staff. Make sure your compensation plans are competitive and your HR capabilities are solid.

Source: ehow.com

Category: Credit

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