How to Start a Loan Brokerage Business
Many individuals experience great success when starting their own loan brokerage business. Loan brokers are responsible for securing loans for residential and commercial clients. But to make your venture successful, you will need a business plan, understanding of regulations, and an interest in the financial industry.
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Instructions
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Create a business plan. Your business plan should include your marketing strategy, financial plan and business forecasts. If you haven't put together a plan yet, consider using a template. Bplans (see Resources below) offers free templates for loan brokerage businesses.
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Seek loan brokerage experience if you haven't worked in the financial industry. Some states require that loan brokers have a couple years of experience before venturing out on their own. Check with your state's real estate division for individual requirements.
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File your loan brokerage business license. In most states, you will be required to file forms to get your loan brokerage business licensee. If you contact your state's consumer affairs department, they can mail you the necessary forms.
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Pay the required fees. Securing your loan brokerage business license will require fees. Depending on your state, these fees can range form $100 to $500. You may also need to pay yearly renewal fees.
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Market your business. Build relationships with local real estate agents to secure referrals. You can also hold free seminars about popular financing topics such as first-time home buying.
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Tips & Warnings
Secure a mentor. Choose a mentor that doesn't directly compete with your business. They can provide valuable insight into the industry to prevent mistakes.
Pay attention to your professional attire. When working in the financial industry, it's important to project a professional image. Since financial services jobs are usually fairly conservative, choose a business suit.
