By Betsy Fallwell
It’s your first day on the job, but instead of putting on your best suit, you’re dressed in a comfortable pair of jeans. You make your breakfast, grab a cup of coffee (homebrewed), but your next stop isn’t to the garage to rev up your car, because you don’t have a morning commute anymore. Now, you work from home, for yourself… because you are a mortgage broker.
What a Mortgage Broker Does
More and more homebuyers are turning away from their financial institution’s lending services and opting to work with a mortgage broker instead. These professionals act as the middle-men (or women!) between lenders and borrowers. When you work with a mortgage broker, you can shop for a wide variety of mortgage products all in one place, saving you time and energy. Plus, this service won’t cost you any extra; most mortgage brokers are paid by commission from the lender you ultimately choose for your home loan. That leaves you paying absolutely nothing for their expertise.
Work from Home: It’s More Than a Fantasy
Mortgage broking is one of the many business ideas that allow you to work from home. Although you can opt to work in an office, there are no industry restrictions forcing you to do so. For this reason, many mortgage brokers choose to work out of their residence.
The advantages here are numerous. No more office politics or drama; you can eliminate your morning commute and everything that comes with it, from the cost of filling up your gas tank to traffic to the toll it all takes on the environment; you set the tone for your work setting, deciding on everything from the lighting to the temperature to the noise level without input from anyone else. Plus, you get to dictate not only where, but when you work. Your working hours are dictated by the needs of your clients as well as your personal preferences.
Franchise Opportunities in Mortgage Broking
Although you can opt to enter the mortgage broking industry on your own, many potential brokers prefer to sign on with an existing mortgage franchise. Franchise opportunities abound, with a variety of price points. Because mortgage broking requires little overhead, franchise buy-ins are very low, typically just a few thousand dollars. Beyond that, you’ll owe your parent company a small royalty fee – a percentage of your commissions – on every sale you make. In return, you’ll receive training and resources from your franchisor; you’ll also be able to capitalize on the positive reputation of the parent company, which can help you quickly grow your client base.
Work from Home, On Your Own
If you decide to leave the franchise after a few years, the valuable experience you gained with the parent company isn’t the only thing you’ll take with you. Any certifications you earned will also follow you post-franchise. Although some states – Alabama and Colorado, to name a few – don’t impose any regulations on mortgage brokers, the vast majority require brokers to maintain some type of liquid capital, have a certain amount of experience in the industry, or pass an exam to be licensed. Your franchise may pay for you to meet these requirements to earn your license, and you can keep this license active even after you leave the franchise to pursue other business ideas and opportunities.