Step1
Contact your state's regulatory agency responsible for overseeing real estate-related corporations. In Illinois, this is the Bureau of Residential Finance. Although states may title such offices with different names, each state has a department that oversees mortgage brokerage operations in the same manner. Through this office, you will be furnished with the proper application requirements. It is important to be fully knowledgeable of what is required to apply for a license. It's also important to know that there will more than likely be an application fee required to be paid up front. This fee varies from state-to-state. In most states, the application fee will fall in the $1,000 to $2,000 range. This fee is typically non-refundable. Note: It is common in some states for it to be required to be a seasoned loan officer before you may own your own brokerage and hire a staff of your own. Such requirements will be explained in your application package. Each loan officer in your shop may also have to be individually licensed. This requirement also varies from state-to-state, however, this will likely be a federal requirement in the near future. Expect to wait between 30 to 90 days for your application to be processed.
Step2
Check your personal credit history. In most states, it may be difficult to obtain a mortgage brokerage license if you have poor credit. It is a good idea to pay all collections, judgments, liens or other past due accounts before applying for your license. If you have a prior bankruptcy, there may be a seasoning period during which you must wait before applying. If your credit is acceptable, then you may safely apply. It is also not uncommon for each state to require a criminal background check be done on each applicant. It is, therefore, important to consult with a representative of your state agency to determine if certain criminal convictions--if you have any--will be allowed. It is also a good idea to settle on a location for your business before you begin the application process. It is recommended that you start small. In some states it is permissible to run your brokerage out of your home. However, in others, it is required that you have an office separate from your residence.
Step3
Pool together your assets. Depending on your state's guidelines, you may be required to own a specific amount of assets in order to obtain a mortgage brokerage license. Many state agencies like for each applicant to own between $20,000 to $30,000 worth of assets. These assets may include cash, office furniture, computers, stocks, bonds, and equity in real estate or automobiles.
Step4
Be prepared to become bonded. In addition to the application fee and asset requirements, the business will need to purchase a surety bond. The amount of bond required will also vary depending which state the mortgage brokerage will be primarily based. Some states require a bond of up to $100,000, while other states require only a $10,000 surety bond. This is standard for all states, except for South Dakota, where no surety bond is required.
Step5
Hire an attorney and/or an accountant. As in starting any business, it is wise to seek legal and financial representation. Your lawyer and CPA will assist you in incorporating, setting up business accounts and assisting you with properly adhering to the guidelines set by your state's regulatory agency. It is also wise to have a budget. It is a common mistake for new brokers to begin hiring loan officers and bringing in business without determining the amount of monthly revenue needed to cover overhead. This overhead may include office rent, computer leases, payroll for salaried or hourly employees, telephone and Internet access and credit reporting fees.
Step6
After your mortgage application is approved, you will receive your license in the mail along with all of the proper paperwork your clients will be required to sign when they apply for a loan with you. You will more than likely need to work closely with a representative of your state regulatory agency to properly provide your customers with application packages. This would also be a perfect time to get your wholesale lenders in place. These are the companies that will fund the loans that you originate for your clients. Being approved to sell loans to specific wholesale lenders sometimes entails a lengthy process. It may be a good idea to begin informing your desired lenders that you are interested in doing business with them before you get your license.
Novice 
