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Mortgage Broker Business Plan Template

Written by Dave Lavinsky

mortgage broker business plan

Over the past 20+ years, we have helped thousands of mortgage brokers start and grow their businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a mortgage brokerage company business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your mortgage business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your business plans.

Why You Need a Business Plan

If you’re looking to start a mortgage broker business, or grow your existing mortgage broker business, you need a business plan. A business plan will help you secure funding, if needed, and plan out the growth of your mortgage broker business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

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How to write a business plan for a mortgage company.

If you want to start a mortgage business or expand your current one, you need a business plan. Below are links to each section of your mortgage business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of mortgage broker business you are operating and the status. For example, are you a startup, do you have a mortgage broker business that you would like to grow, or are you operating mortgage broker businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the mortgage industry. Discuss the type of mortgage broker business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing and sales strategy. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of mortgage broker business you are operating.

For example, you might operate one of the following types of mortgage broker businesses:

  • Retail Mortgage Broker : this type of mortgage broker business focuses on being a broker for individuals or small businesses.
  • Business/Corporate Mortgage Broker: this type of mortgage broker interacts with and provides services for mid-size businesses and corporate entities.
  • Private Mortgage Brokers: this type of mortgage broker’s clients are wealthy individuals and families with high net-worth levels.

In addition to explaining the type of mortgage broker business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, dollar of amount of total loans, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the mortgage industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the mortgage industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy , particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your mortgage business plan:

  • How big is the mortgage industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your mortgage business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your mortgage broker business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments : prospective home buyers, families, couples and small businesses.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of mortgage brokerage you operate. Clearly, a single individual would respond to different marketing promotions than a large corporation, for example.

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other mortgage broker businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes real estate firms, loan officers, and bankers. You need to mention such competition as well.

mortgage brokerage competitive analysis matrix

  • What types of customers do they serve?
  • What type of mortgage brokerage are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide lower interest rates?
  • Will you provide services that your competitors don’t offer?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

mortgage broker marketing plan diagram

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your mortgage company. Document your location and mention how the location will impact your success. For example, is your mortgage brokerage located in a busy retail district, a business district, a standalone office, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your mortgage broker marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Advertising in local papers and magazines
  • Reaching out to websites 
  • Social media marketing
  • Local radio and television advertising
  • Other digital marketing efforts such as paid advertising and search engine optimization for you business website

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your mortgage brokerage, including marketing your services, reviewing credit history of clients, shopping amongst mortgage lenders, and gathering and completing all necessary documents to submit and have a loan approved. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to land your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your mortgage brokerage to a new city.  

Management Team

To demonstrate your mortgage brokerage’s ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing mortgage broker businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing loan services or successfully running their own mortgage brokerage company .  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

mortgage brokerage sales growth

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your mortgage broker business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a mortgage broker business:

  • Advertising and marketing
  • Cost of equipment and supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or fees paid to support clients in finding the right mortgage loan.  

Putting together a business plan for your mortgage broker business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the mortgage industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful mortgage broker business.  

Mortgage Broker Business Plan FAQs

What is the easiest way to complete my mortgage broker business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Mortgage Broker Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of mortgage broker business you are operating and the status; for example, are you a startup, do you have a mortgage broker business that you would like to grow, or are you operating a chain of mortgage broker businesses?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

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Mortgage Broker Business Plan Template

Written by Dave Lavinsky

Mortgage Broker Business Plan

You’ve come to the right place to create your Mortgage Broker business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Mortgage Broker companies.

Below is a template to help you create each section of your Mortgage Broker business plan.

Executive Summary

Business overview.

Davidson Mortgage, located in Tucson, Arizona, is a new mortgage brokerage specializing in residential mortgages. The company will operate in a professional setting, conveniently located next to several banks in the center of the shopping district. We offer a wide range of services to help our clients get a mortgage, including finding loan options, applying for the loans on the clients’ behalf, and completing all the paperwork. We strive to serve our clients with the utmost empathy to ensure they get the best mortgage for their situation.

Davidson Mortgage is headed by Harold Davidson. He is an MBA graduate from Arizona State University with 20 years of experience working in the finance industry. His passion is to help his clients qualify for their dream homes and provide them with a smooth process from start to finish.

Davidson Mortgage will focus on providing superior service to all of its clients to ensure they get the best mortgage possible. Our services include finding loan options, applying for loans on behalf of customers, and completing closing paperwork. Since customer service is our top priority, we will keep in touch with our clients after they have closed on the mortgage. Furthermore, Harold will create webinars, online courses, and other content to educate his clients and the local community on the mortgage lending process.

Customer Focus

Davidson Mortgage will primarily serve homebuyers interested in properties located in the Tucson, Arizona area. Tucson is a growing city with thousands of residents eager to purchase a new home. We expect our clientele to be equal parts first-time home buyers and existing homeowners.

Management Team

Davidson Mortgage is run by Harold Davidson. Harold has been a licensed mortgage broker for the past 20 years, working for several large firms. However, throughout his career, he desired to have a closer connection with his clients as well as have more flexibility to help them get their dream homes. He started this company in order to achieve those goals. In addition to his valuable experience, Harold also holds an MBA from Arizona State University.

Harold is joined by Bethany Peterson. She will serve as the company’s full-time assistant, who, among other things, will manage the company website, coordinate scheduling, and answer basic client questions. Bethany has experience working with C-level executives and has spent significant time as an administrator.

Success Factors

Davidson Mortgage is uniquely qualified to succeed due to the following reasons:

  • Davidson Mortgage will fill a specific market niche in the growing community we are entering. In addition, we have surveyed local realtors and homebuyers and received extremely positive feedback saying that they would consider making use of our services when launched.
  • Our location is in an economically vibrant area where new home sales are on the rise, and turnover in homes and rentals occurs often due to the upward mobility of residents.
  • The management team has a track record of success in the mortgage brokerage business.
  • The local area is currently underserved and has few independent mortgage brokers offering high customer service to homebuyers.

Financial Highlights

Davidson Mortgage is seeking a total funding of $250,000 of debt capital to open its office. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

  • Office design/build: $50,000
  • Three months of overhead expenses (payroll, rent, utilities): $100,00
  • Marketing expenses: $50,000
  • Working capital: $50,000

mortgage brokerage business plan pdf

Company Overview

Who is davidson mortgage, davidson mortgage history.

After surveying the local customer base and finding a potential office, Harold Davidson incorporated Davidson Mortgage as an S-Corporation on 1/1/2023.

The business is currently being run out of Harold’s home office, but once the lease on Davidson Mortgage’s office location is finalized, all operations will be run from there.

Since incorporation, Davidson Mortgage has achieved the following milestones:

  • Found office space and signed Letter of Intent to lease it
  • Developed the company’s name, logo, and website
  • Hired an interior designer for the decor and furniture layout
  • Determined equipment and fixture requirements

Davidson Mortgage Services

Industry analysis.

Despite the pandemic hurting several industries, the mortgage brokers industry still performed strong and is projected to continue to do so. Last year, U.S. mortgage brokerages brought in revenues of $11.7 billion and employed 47,000 people. There were just over 12,000 businesses in this market.

However, the mortgage broker industry is highly fragmented, with the top two companies accounting for just over 11% of industry revenue. Furthermore, mortgage interest rates are on the rise, as well as housing prices, preventing many people from buying houses and applying for mortgages. These two factors significantly stunt the industry at present.

Despite these challenges, the industry is still projected to increase moderately throughout the rest of the decade. Though larger firms may dominate revenue and clientele, studies and surveys show that clients don’t necessarily favor working with large firms. Providing excellent service and personal touches throughout the process can help small firms succeed in the industry.

Customer Analysis

Demographic profile of target market.

Davidson Mortgage will primarily serve the residents of Tucson, Arizona. The area we serve has a significant population of people who are searching for their first home, as well as families and individuals who need a new home.

The precise demographics for Tucson, Arizona are:

Customer Segmentation

Davidson Mortgage will primarily target the following customer segments:

  • Existing homeowners
  • First-time home buyers

Competitive Analysis

Direct and indirect competitors.

Davidson Mortgage will face competition from other companies with similar business profiles. A description of each competitor company is below.

The Loan Store

Established in 2010, The Loan Store originates, finances, and sells mortgage and non-mortgage lending products throughout the United States. It offers a range of consumer credit products, such as home loan products, home equity loans, and unsecured personal loans, as well as home and personal loan servicing. The company claims to be one of the largest private, independent retail mortgage lenders in the U.S. Its current business channels include direct lending, affinity, branch retail, and servicing.

However, agents working with The Loan Store experience high turnover, resulting in little concern for maintaining ongoing relationships with clients. Also, the agents themselves are mixed in quality, ranging from part-time brokers with little experience or sales records to full-time brokers with long-term experience. There is no systematic company method for passing on knowledge from experienced to inexperienced brokers as all are competing with each other, to a certain extent, for commissions.

Direct Loan Connection

Founded in 2006, Direct Loan Connection (DLC) employs licensed mortgage professionals who have access to multiple lending institutions, including banks, credit unions, and trust companies. This access enables the company to offer a vast array of available mortgage products – ranging from first-time homebuyer programs to financing for the self-employed to financing for those with credit blemishes. In addition, to help homebuyers and homeowners, DLC offers commercial mortgages.

Though they are a local leader in the premium end of the market, they refuse to negotiate their broker’s fees and sometimes lose potential clients because of this. Davidson Mortgage’s fees will be far more reasonable.

Supreme Mortgage

Supreme Mortgage specializes in mortgage brokering and is committed to helping homebuyers, and homeowners get the best mortgage with the lowest interest rate. The brokerage works with more than 40 lenders who compete to provide mortgages and who pay Supreme Mortgage’s fee so that clients receive the service free of charge.

Some reviews of Supreme Mortgage point out the low-quality service offered by brokers, who have little training in customer service. Furthermore, Supreme Mortgage does not attempt to maintain long-term relationships with customers who will eventually purchase another home.

Competitive Advantage

Davidson Mortgage enjoys several advantages over its competitors. These advantages include:

  • Location: Davidson Mortgage’s location is near the center of town, in the shopping district of the city. It is visible from the street, where many residents shop for both day-to-day and luxury items.
  • Client-oriented service: Davidson Mortgage will have a full-time assistant to keep in contact with clients and answer their everyday questions. Harold Davidson realizes the importance of accessibility to his clients and will further keep in touch with his clients through monthly seminars on topics of interest.
  • Management: Harold Davidson has been extremely successful working in the mortgage brokerage sector and will be able to use his previous experience to grant his clients detailed insight into the world of home loans. His unique qualifications will serve customers in a much more sophisticated manner than many of Davidson Mortgage’s competitors.
  • Relationships: Having lived in the community for 25 years, Harold Davidson knows many of the local leaders, newspapers, and other influencers.

Marketing Plan

Davidson Mortgage will use several strategies to promote its name and develop its brand. By using an integrated marketing strategy, Davidson Mortgage will win clients and develop consistent revenue streams.

Brand & Value Proposition

The Davidson Mortgage brand will focus on the company’s unique value proposition:

  • Client-focused residential mortgage brokerage services, where the company’s interests are aligned with the customer
  • Service built on long-term relationships and personal attention
  • Big-firm expertise in a small-firm environment

Promotions Strategy

The promotions strategy for Davidson Mortgage is as follows:

Website/SEO

Davidson Mortgage will invest heavily in developing a professional website that displays all of the features and benefits of working with the mortgage broker. It will also invest heavily in SEO so the brand’s website will appear at the top of search engine results.

Social Media

Davidson Mortgage will invest heavily in a social media advertising campaign. Harold and Bethany will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Davidson Mortgage understands that the best promotion comes from satisfied customers. The company will work to partner with local realtors by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.

By offering webinars and courses on topics of interest in the office or other locations, Harold Davidson will encourage residents in the community to become comfortable with the expertise and character of Davidson Mortgage. These webinars will generally be offered free of charge as general promotion and for direct networking.

Davidson Mortgage’s pricing will rely on the standard industry rates in order to be perceived as neither a luxury nor a discount broker. The standard rate for brokering a mortgage is 1-2% of the loan amount. By seeking quality clients and maintaining long-term relationships with them, Davidson Mortgage will fend off pressure to discount their rates, even in down markets.

Operations Plan

The following will be the operations plan for Davidson Mortgage.

Operation Functions:

  • Harold Davidson is the founder and will operate as the President of the company. He will be in charge of all the general operations and executive functions within the company. Furthermore, until he hires additional staff, he will personally help all clients who agree to utilize the company’s services.
  • Harold is assisted by his long-term assistant Bethany Peterson. She will serve as the company’s full-time assistant and will manage the company website, coordinate scheduling, and answer basic client questions. Bethany has experience working with C-level executives and has spent significant time as an administrator.
  • As the business grows and Harold takes on more clients, he will hire other mortgage brokers to assist him.

Milestones:

The following are a series of steps that will lead to the company’s long-term success. Davidson Mortgage expects to achieve the following milestones in the next six months:

3/202X            Finalize lease agreement

4/202X            Design and build out Davidson Mortgage office

5/202X            Hire and train initial staff

6/202X            Kickoff of promotional campaign

7/202X            Reach break-even

8/202X            Reach 25 ongoing clients

Financial Plan

Key revenue & costs.

Davidson Mortgage’s revenues will come primarily from the commissions earned from residential mortgage sales.

The major cost drivers for the company will include employee salaries, lease payments, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

  • Annual lease: $30,000

Financial Projections

Income statement, balance sheet, cash flow statement, mortgage broker business plan faqs, what is a mortgage broker business plan.

A mortgage broker business plan is a plan to start and/or grow your mortgage broker business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Mortgage Broker business plan using our Mortgage Broker Business Plan Template here .

What are the Main Types of Mortgage Broker Businesses?

There are a number of different kinds of mortgage broker businesses , some examples include: Retail Mortgage Broker, Business/Corporate Mortgage Broker, or Private Mortgage Brokers.

How Do You Get Funding for Your Mortgage Broker Business Plan?

Mortgage Broker businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Mortgage Broker Business?

Starting a mortgage broker business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Mortgage Broker Business Plan - The first step in starting a business is to create a detailed mortgage broker business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your mortgage broker business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your mortgage broker business is in compliance with local laws.

3. Register Your Mortgage Broker Business - Once you have chosen a legal structure, the next step is to register your mortgage broker business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your mortgage broker business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Mortgage Broker Equipment & Supplies - In order to start your mortgage broker business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your mortgage broker business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful mortgage broker business:

  • How to Start a Mortgage Broker Business

Mortgage Brokerage Business Plan Template & Guidebook

If you’re looking for a comprehensive, easy-to-follow guide to launching and growing a successful mortgage brokerage business, you've come to the right place. The #1 Mortgage Brokerage Business Plan Template & Guidebook provides the information and tools you need to create a comprehensive, professional business plan for your mortgage brokerage. With this guide, you'll have the knowledge and confidence to attract investors, secure funding and succeed in the competitive world of mortgage brokerage.

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  • How to Start a Profitable Mortgage Brokerage Business [11 Steps]
  • 25 Catchy Mortgage Brokerage Business Names:

How to Write a Mortgage Brokerage Business Plan in 7 Steps:

1. describe the purpose of your mortgage brokerage business..

The first step to writing your business plan is to describe the purpose of your mortgage brokerage business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a mortgage brokerage business:

Our mission at [Mortgage Brokerage] is to offer the highest level of financial advice and guidance to our clients, helping them to achieve their goals and promote long-term financial stability. We strive to create an environment of trust, respect, and integrity, and to provide every client with an individualized mortgage solution tailored to their specific needs. We are committed to providing exceptional customer service and delivering a positive customer experience throughout the loan process.

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2. Products & Services Offered by Your Mortgage Brokerage Business.

The next step is to outline your products and services for your mortgage brokerage business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

  • What is my business?
  • What are the products and/or services that I offer?
  • Why am I offering these particular products and/or services?
  • How do I differentiate myself from competitors with similar offerings?
  • How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

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3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your mortgage brokerage business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your mortgage brokerage business includes the following elements:

Target market

  • Who is your target market?
  • What do these customers have in common?
  • How many of them are there?
  • How can you best reach them with your message or product?

Customer base 

  • Who are your current customers? 
  • Where did they come from (i.e., referrals)?
  • How can their experience with your mortgage brokerage business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

  • How does it work, what features does it have, and what are its benefits?
  • Can anyone use this product or service regardless of age or gender?
  • Can anyone visually see themselves using this product or service?
  • How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

  • Which companies are competing with yours today (and why)? 
  • Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
  • What specific advantages does each competitor offer over yours currently?

Marketing channels

  • Which marketing channel do you intend to leverage to attract new customers?
  • What is your estimated marketing budget needed?
  • What is the projected cost to acquire a new customer?
  • How many of your customers do you instead will return?

Form an LLC in your state!

mortgage brokerage business plan pdf

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

  • The equipment and facilities needed
  • Who will be involved in the business (employees, contractors)
  • Financial requirements for each step
  • Milestones & KPIs
  • Location of your business
  • Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a mortgage brokerage business?

  • Licensed mortgage broker
  • Computers and software
  • Access to a loan origination system (LOS)
  • Office space
  • Business license and permits
  • Furniture and office supplies
  • Insurance for the business
  • Dedicated phone line
  • Advertising and marketing budget

5. Management & Organization of Your Mortgage Brokerage Business.

The second part of your mortgage brokerage business plan is to develop a management and organization section.

This section will cover all of the following:

  • How many employees you need in order to run your mortgage brokerage business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
  • The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
  • How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Mortgage Brokerage Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a mortgage brokerage business varies based on many different variables, but below are a few different types of startup costs for a mortgage brokerage business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your mortgage brokerage business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your mortgage brokerage business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your mortgage brokerage business plan:

  • Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
  • Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
  • Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
  • Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
  • Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
  • Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

mortgage brokerage business plan pdf

Frequently Asked Questions About Mortgage Brokerage Business Plans:

Why do you need a business plan for a mortgage brokerage business.

A business plan is a fundamental tool for the success of a mortgage brokerage business. It outlines business goals, strategies and tactics, financial projections, and provides potential investors with an analysis of the expected returns over time. It also serves as a roadmap for the business owner to follow and helps identify potential risks and opportunities. Additionally, banks and other lenders often require aspiring entrepreneurs to have a comprehensive business plan in order to qualify for financing.

Who should you ask for help with your mortgage brokerage business plan?

You should ask for help with your mortgage brokerage business plan from a local small business advisor or accountant. You could also contact a local Small Business Development Center (SBDC) for guidance on developing a business plan.

Can you write a mortgage brokerage business plan yourself?

Yes, it is possible to write a mortgage brokerage business plan yourself. Depending on the scope of the business plan, it may be necessary to obtain specialized financial information and advice from an accountant, lawyer or other qualified professional. Additionally, there are many resources available online that can provide guidance on how to write a successful business plan.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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Mortgage Broker Business Plan

Start your own mortgage broker business plan

Claremont Funding

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Claremont Funding is an outstanding mortgage brokerage firm serving the lending needs of real estate professionals, builders and individual home buyers. We have access to a full range of mortgage sources and are dedicated to finding the right loan–with the best rates, terms and costs–to meet our clients’ unique needs.

This firm is capitalized by two principal investors, Joan Billings and Maureen Shoe. Both are licensed brokers with a combined experience of over 30 years in the industry.

1.1 Objectives

Claremont Funding aims to offer comprehensive mortgage broker services. Claremont Funding will focus on providing personal and specialized services to meet each client’s specific needs. The primary objectives of our firm are:

  • Become profitable serving the real estate investment opportunities becoming available in the rapidly growing old town section of the city.
  • Develop a solid, corporate identity in our specified target market area.
  • Become one of the top brokerage firms in the area by our third year of operation, or before.
  • Realize a positive return on investment within the first 12 months.

1.2 Mission

Claremont Funding offers high-quality mortgage brokerage services to residential and business customers. Our aim is to provide our customers with fair mortgage rates at reasonable prices, while keeping our clients informed and educated throughout the process.  We will become friends and mentors to our customers as well as quality service providers. Claremont is an excellent place to work, a professional environment that is challenging, rewarding, creative, and respectful of ideas and individuals.  Claremont ultimately provides excellent value to its customers and fair reward to its owners and employees.

Mortgage broker business plan, executive summary chart image

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Company summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">.

Claremont Funding is a new company that provides a high level of expertise.  We will provide superior personal service to buyers.  We take pride in knowing that 70% of our business comes from repeat clients and their referrals.

Our responsibility as mortgage professionals is to determine what a customer’s financial goals are, not just quote a rate. We have access to hundreds of loan programs, allowing us to arrange the most beneficial solution… whatever the buyer’s needs may be.

2.1 Company Ownership

The owners and brokers of Claremont Funding are Joan Billings and Maureen Shoe.

2.2 Start-up Summary

Our start-up costs are outlined in the following table. Start-up costs derive from website design, office equipment, main computer station complete with all mortgage information for broker usage, stationery, legal costs, furnishings, office advertising and services, and expenses associated with opening our office. The start-up costs are to be financed by direct owner investment and credit. Lease office space averages $1.10 – 1.60 per square foot to an approximate of $1,500 per month, plus utilities, for efficient leased office space. Commercial lease will be for a three to five year agreement with the first month and a security deposit equal to the monthly lease rate payable at the time of lease start date.

Our personal goal is to break through the barriers that impede homeownership for those who wish to realize the American Dream.  We provide potential and current homeowners the opportunity to find the best mortgage loan for their needs.

We match buyers to loan programs. We have an extensive questionnaire for our buyers to list their wants and needs. We then take this questionnaire and put the supplied information to match buyers to the loan packages matching their criteria.

Market Analysis Summary how to do a market analysis for your business plan.">

Due to the strengthening of the area’s economy and lower interest rates, more home buyers today are looking to purchase homes. These changes in attitudes of home buyers are a tremendous boost to real estate firms. Residential construction is booming in the city’s Old Town section. We are poised to take advantage of these changes, and expect to become a recognized name and profitable entity in the city’s real estate market. We chose to locate our office in the area of most revenue potential and where we have close connection to dominant real estate firms. Our targeted market area, the Old Town area, shows stability and growth. We have a beautiful office, centered in the Old Town area.

The first quarter home values were up 12.5 percent from the same period in 2001, the Office of Federal Housing Enterprise Oversight reported. The gain reflects an increase from the previous quarter, when residential real estate values saw growth of 12.1 percent.

4.1 Market Segmentation

The home buyers that Claremont Funding will be serving can be divided into two groups:

  • First-time homeowners: A bulk of the new construction in the Old Town section of the city is directed toward first-time homeowners.
  • Residential refinancing: Whether it is for purchasing, construction, remodeling, debt consolidation, investment properties or refinancing–we have programs available to service those with good and bad credit.

Mortgage broker business plan, market analysis summary chart image

4.2 Target Market Segment Strategy

We cannot survive waiting for the customer to come to us. Instead, we must get better at focusing on the specific market segments whose needs match our offerings. Focusing on targeted segments is the key to our future. Therefore, we need to focus our marketing message and our services offered. We need to develop our message, communicate it, and make good on it.

Strategy and Implementation Summary

Claremont Funding will focus on the mortgage broker needs in the Old Town section of the city and the surrounding areas. Our target customer will be first-time home buyers and existing homeowners who are interested in refinancing.

5.1 Sales Forecast

The following table and chart give a run-down on forecasted sales. We expect sales to build between January through March with the most growth during the months of March through August. We expect sales to drop off from September till the end of the year.

Mortgage broker business plan, strategy and implementation summary chart image

5.2 Milestones

The accompanying table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

5.3 Competitive Edge

Claremont Funding’s competitive edge is that both Joan and Maureen are the most visible lecturers to new home owners in the city. Joan has a weekly column in the city’s daily newspaper and Maureen lectures weekly to the city’s numerous neighborhood councils and civic groups.  Together, they represent the most recognizable faces in the city on the subject of home ownership and refinancing a home.

Between them, they have a base of 6,000 satisfied customers who continue to make referrals to the brokers.

The city has been growing by 15% annually for the past 10 years.  With the population now at 1.3 million, the new construction in the Old Town section of the city is valued at two billion dollars in home sales next year alone. Claremont Funding is positioned well to grab a large share of the mortgage services demanded by the city’s growth in Old Town.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Claremont Funding is a two member mortgage brokerage firm.  Both brokers are equal partners in the firm.

6.1 Personnel Plan

The following table shows the personnel plan for Claremont Funding.

Financial Plan investor-ready personnel plan .">

  • We want to finance growth mainly through cash flow.
  • The most important factor for Claremont Funding is the closing sales days. These dates will be determined ultimately by the Seller and the Buyer and a move out/move in schedule will be complied with.

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendix. From the beginning, we recognize that collection days are critical, but not a factor we can influence easily. At least we are planning on the problem, and dealing with it. Interest rates, tax rates, and personnel burden are based on conservative assumptions. Some of the more important underlying assumptions are:

  • We assume a strong economy, without major recession.
  • We assume, of course, that there are no unforeseen changes in the economy that would change our estimations.

7.2 Break-even Analysis

The following table and chart will summarize our break-even analysis.

Mortgage broker business plan, financial plan chart image

7.3 Projected Profit and Loss

Our projected profit and loss is shown on the following table.

Mortgage broker business plan, financial plan chart image

7.4 Projected Cash Flow

Cash flow projections are critical to our success. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendix.

Mortgage broker business plan, financial plan chart image

7.5 Projected Balance Sheet

The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. The monthly estimates are included in the appendix.

7.6 Business Ratios

The following table provides important ratios for the industry, as determined by the Standard Industry Classification (SIC) Index, 7389, Business Services.

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Mortgage Broker Business Plan Template [Updated 2024]

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Mortgage Broker Business Plan Template

If you want to start a Mortgage Broker business or expand your current Mortgage Broker business, you need a business plan.

The following Mortgage Broker business plan template gives you the key elements to include in a winning loan officer business plan.

You can download our business plan template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of a sample mortgage broker business plan. Once you create your plan, download it to PDF to show banks and investors.

I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Mortgage Broker Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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5+ Mortgage Broker Business Plan Examples in MS Word | Google Docs | Apple Pages | PDF

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It’s a never-ending battle to come up with new ways to improve the company. Corporate think tanks conduct extensive market research to assist executives in making important decisions. Report documents are always on people’s desks, urging them to make changes. With all of the facts and figures in hand, planning begins to ensure that the present and future situations are under control. Consider the mortgage broker business, which is always looking for new ways to increase profits, gain more partners, improve their small marketing strategies , and even expand to serve more people. Also, make sure that planning will never stop in your industry.

5+ Mortgage Broker Business Plan Examples

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2. Mortgage Broking Business Plan

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3. Sample Mortgage Broker Business Plan

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4. Wholesale Mortgage Broker Business Plan Agreement

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What Is a Mortgage Broker Business Plan?

A sample business plan contains a list of guidelines and processes that assist businesses in achieving their goals. Some business plans are in place for years, while others are only in place for a few months. Mortgage business plans follow the same path but with more specifics. The strategy focuses on methods and systems that make mortgage programs, projects, and proposals relevant to the target market—homebuyers and property investors . The primary goal of most mortgage business plans is to increase sales while reducing losses.

How To Create a Mortgage Broker Business Plan?

Being a mortgage broker entails being in the thick of the transaction. You have clients or customers on the one hand and lending companies on the other. The lending agencies could be a commercial real estate company or a bank that makes bank loans. Additionally, as a broker, you serve as a convenient intermediary. Therefore, begin by presenting your business plan to agencies by following the simple steps outlined below.

1. Recognize the Parties Involved

When you know who you’re dealing with, you’ll be able to make property investments and get financial assistance. You can change your plans depending on the nature of the institution, whether it’s a local bank, a rental property agency, or a real estate company. Make sure you understand their process so you can properly align your comprehensive proposals .

2. Define your Company’s Branding

Any business suffers from chaotic and incomprehensible branding. If your customers and viewers are unclear about the purpose of your advertisement or the contents of your website, you will lose credibility and, unfortunately, audiences. So, plan and develop a well-organized and professional brand for your company. Before your launch dates, choose your color palettes and create your logo. Then, using the selected color patterns as a guide, create alternate outputs. When creating flyers or leaflets, make sure that the advertising materials have a specific direction.

3. Select Your Marketing or Advertising Campaigns

Each marketing strategy and advertising campaign serves as the super-strong thread that connects the business plan. These strategies—approaches that mortgage businesses must adhere to are the business’s driving force. Through these concepts, companies gain a clear understanding of the path forward for the enterprise’s development. However, keep in mind that the marketing and advertising strategies chosen for the business plan should align with the company’s vision.

4. Make it Possible

An impossible plan isn’t worth making, and it’s certainly not worth sharing. You may have objectives, but keep both feet on the ground so that the implementation phase is the next priority. You can either run a feasibility test or give it a dose of common sense. Your ideas must produce results, and the best course of action is to make them feasible. Whether it’s a strategic plan or an action plan , your company deserves to know where it’s going. Don’t forget to set aside time to plan for improvement and betterment, as this will benefit everyone.

Is it true that mortgage brokers are a dying breed?

During the recession, many brokers were forced to close their doors. Many people declared mortgage brokers to be a dying breed. Today, however, reality contradicts them. Brokers are becoming increasingly important in the housing market because they bridge the consumer and the appropriate lending institution gap.

Is it possible to haggle mortgage broker fees?

When shopping for a loan, you’ll come across a dozen different types of mortgage fees — and sometimes even more. Most of them, however, can be negotiated by asking for a lower price or a waiver.

How long is it necessary for a mortgage broker to keep files?

For three years, a broker must retain copies of all documents relating to transactions, trust accounts, and other documents executed or obtained in connection with any transaction requiring a broker’s license.

A mortgage company requires a foolproof and efficient business plan in addition to hard work and dedication. Businesses must set goals, objectives, and standards to ensure proper management sample. In some ways, business plans serve as a blueprint for how to run a company. Companies should use this information to create a business plan that fits their needs and proposed end goals. Have you gained any insight from the advice given above? So, what exactly are you waiting for? Now is the time to get the templates !

mortgage brokerage business plan pdf

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How to Start a Mortgage Brokerage Business

Buying a home or owning a business is a dream many people have. But, getting a loan to buy that home, a piece of land, or an office building can be difficult. Lenders don't always want to talk to a small business owner or even a renter looking for a home. A mortgage brokerage business acts as a middleman between the borrower and the lender and can often negotiate deals with lenders that the borrower couldn't do on his or her own.

Learn how to start your own Mortgage Brokerage Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Mortgage Brokerage Business Image

Start a mortgage brokerage business by following these 10 steps:

  • Plan your Mortgage Brokerage Business
  • Form your Mortgage Brokerage Business into a Legal Entity
  • Register your Mortgage Brokerage Business for Taxes
  • Open a Business Bank Account & Credit Card
  • Set up Accounting for your Mortgage Brokerage Business
  • Get the Necessary Permits & Licenses for your Mortgage Brokerage Business
  • Get Mortgage Brokerage Business Insurance
  • Define your Mortgage Brokerage Business Brand
  • Create your Mortgage Brokerage Business Website
  • Set up your Business Phone System

We have put together this simple guide to starting your mortgage brokerage business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

  • What are the startup and ongoing costs?
  • Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Mortgage Brokerage Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

  • Your state's business records
  • Federal and state trademark records
  • Social media platforms
  • Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your mortgage brokerage business?

Business name generator, what are the costs involved in opening a mortgage brokerage business.

Costs involved in starting a mortgage brokerage business are small. Most brokerages can be started out of the home for little or no money aside from the licensure and basic legal requirements.

What are the ongoing expenses for a mortgage brokerage business?

Ongoing expenses for a small mortgage brokerage business are minimal. Usually, all you have to pay for is office space and labor expenses. Larger firms incur higher expenses due to higher labor, insurance, and office-related expenses.

Who is the target market?

Target market for this business includes businesses looking for commercial property, individuals and families looking for residential home(s), and investors looking for real estate or rental properties.

How does a mortgage brokerage business make money?

This business makes money by receiving a commission (a percentage of each loan) in return for bringing customers to the lender.

The fee is paid either by the borrower or the lender, and is usually between 1% and 2% of the total loan amount. Some brokerage firms also charge fees for applications or other ancillary services.

How much profit can a mortgage brokerage business make?

Mortgage brokerage firms can have a high profit margin. Smaller firms generally have a higher margin than larger ones, owing to the fact that smaller firms have lower overhead and ongoing expenses. Margins can range from 10% up to 50% or more, depending on the size of the operation.

How can you make your business more profitable?

Add ancillary services. Most borrowers need some type of help with their credit. If a borrower doesn't qualify for a loan, your firm could offer to help them improve their credit or partner with other firms that specialize in this area. You can also partner with insurance agents and real estate brokers or realtors to offer an "immersive" experience for your clients.

Check with your state. Some regulations prohibit mortgage brokers from engaging in sideline businesses.

As a mortgage brokerage company, you don't need to focus on the residential mortgage market, even thought this is a popular market. You can also fund real estate investments and provide capital to investors to increase profits for the firm.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your mortgage brokerage business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

  • Separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

  • Separate personal and business expenses by putting your business' expenses all in one place.
  • Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

Federal Business Licensing Requirements

The Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act was passed in 2008, requiring all mortgage brokers to have met certain minimum standards for licensing. This includes 20 hours of a class from the National Mortgage Licensure System, as well as passing a national exam, the SAFE Mortgage Loan Originator Test.

State & Local Business Licensing Requirements

In addition to the federal standards each state has its own licensing requirements for mortgage brokers. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

A mortgage brokerage firm business is generally run out of an office. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

  • If you plan to lease a location :
  • It is generally the landlord’s responsibility to obtain a CO.
  • Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a mortgage brokerage business.
  • After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
  • If you plan to purchase or build a location :
  • You will be responsible for obtaining a valid CO from a local government authority.
  • Review all building codes and zoning requirements for your business’ location to ensure your mortgage brokerage business will be in compliance and able to obtain a CO.

Services Contract

Mortgage brokerage businesses should require clients to sign a services agreement before starting a new project.  This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Mortgage Brokerage Business needs and how much it will cost you by reading our guide Business Insurance for Mortgage Brokerage Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a mortgage brokerage business

Start by networking locally. If you want to advertise, start small with business cards, flyers, and local ads in the newspaper and online (pay-per-click).

How to keep customers coming back

Most people don't make a major real estate purchase very often. So, if you want them to keep you in mind for future business, you need to stay in contact with them. After the loan closes, follow up with them to make sure everything worked out fine for them with the lender. If possible, get them on your email list and send regular updates about the local real estate market, insurance tips, money-saving tips, and ideas for living a better life.

Building a relationship with your clients will make you more than just a brokerage firm that got them a loan for their house that one time.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

  • All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
  • Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
  • Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

TRUiC's Startup Podcast

Welcome to the Startup Savant podcast , where we interview real startup founders at every stage of the entrepreneurial journey, from launch to scale.

Is this Business Right For You?

Owning a mortgage brokerage business is not for everyone. You need to have a special affinity for numbers and finance. It also helps to have at least a basic understanding of the banking industry, and specifically the mortgage industry. You should be detail oriented and good with numbers. You also should have a passion for helping people. The mortgage business is highly commoditized. The most successful brokerages are those that build relationships with their clientele.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a mortgage brokerage business?

Your day starts by collecting applications. The review process can take some time. Some borrowers don't have good credit and need help with their credit report and score. Others just need to find the best deal in the marketplace.

This is where you come in. Brokers who work for a mortgage brokerage business spend a significant amount of time emailing and calling lenders, using online quoting systems, and talking to their contacts in the industry about the best products available for their clients and customers.

They take applications, sort them, and talk to potential borrowers about what they qualify for. They also follow through on those applications with the lender to make sure all paperwork is in good order and that they are complying with all federal lending regulations.

What are some skills and experiences that will help you build a successful mortgage brokerage business?

You must be detail oriented, understand basic finance and financial calculations, and be licensed in your state to do business. In addition to the basic requirements, you also need to complete related coursework in finance and be able to review lending and financial documents and conduct research. Classes in computer use are not mandatory, but helpful.

You also need to attend pre-licensure education. The 2008 SAFE Act requires all mortgage brokers to be licensed. All licenses issued throughout the country are maintained by the National Mortgage Licensure System (NMLS). NMLS also provides brokers guidance on getting licensed in your state. Licensure involves 20 hours of pre-licensure programming and you must pass an exam to practice in your state.

What is the growth potential for a mortgage brokerage business?

The firm can be small or large. Typically, a small mortgage brokerage firm consists of a team of 1 to 5 people. If you own and operate the business, you can run the business out of your home. However, most brokerage firms operate out of an office, since most borrowers want to meet with a mortgage broker in a professional setting.

HomeSure Lending, Academy Mortgage Corporation, and Crestico are all examples of large mortgage brokerage businesses.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a mortgage brokerage business?

Network. The mortgage industry is built on trust and referral business. While some larger institutions are able to use advertising to sell loans, many small mortgage brokerage businesses rely on a good reputation locally. Partner with successful local real estate agents and insurance agents. These professionals are frequently in contact with people who are or may be looking for a home.

How and when to build a team

If you're starting out at a one-person firm, then you don't need a team. However, a small mortgage brokerage business typically has a team of between 2 and 5 people. You may work as a loan officer or oversee other loan officers. You'll need an HR or account manager and a bookkeeper. You may also need someone to answer the phone, make appointments, and take messages.

Useful Links

Industry opportunities.

  • Mortgage Bankers Association
  • Motto Mortgage (franchise opportunity)

Real World Examples

  • HomeSure Lending

Further Reading

  • Tips for growing your business

Have a Question? Leave a Comment!

Sample Mortgage Brokerage Firm Business Plan

Mortgage brokerage business plan pdf sample.

Are you looking to start a high-class Mortgage firm and need to write a business plan?

Here is a sample business plan for starting a mortgage brokerage firm.

  • Executive Summary • Who We Are • Administration
  • Business Objectives
  • Core Values
  • Services Offered
  • SWOT Analysis
  • Summary of Market Analysis
  • Strategy and Approach to the Market
  • Financial Plan

EXECUTIVE SUMMARY

• Who We Are—QMT Finance is a mortgage brokerage company that is poised on striking the delicate balance between loans and interest rates in the financial market of lending.

We lend to real estate professional bodies, medium and large-scale firms, and corporate individuals.

With QMT Finance, clients are sure to attain their financial goals without much hassle as we have specialized facilities and individuals to cater to every documentation, and that your needs are met duly.

• Administration—This is built up of the current owners of the firm made of 5 members, consultants made up of 3 members, and a position is made available for investors as well in this team.

The organization is composed of, in the following hierarchy, the Board of directors, Senior Management, Mortgage Brokers, Mortgage bankers, and Sales Agent.

We are looking at providing our customers with the fairest of loan services obtainable; and in the nearest future, we look to dominate the investment market, in such a way that we would be keenly involved in the shaping of the market.

We see a 5-year-future in which QMT would have grown into a $7 million company, a mentor to other financial bodies, as well as a hope for firms that are stuck between the Nile and hungry business lions.

BUSINESS OBJECTIVES

QMT Finance is a goal-oriented company that has had its eyes set on several objectives since its inception. They are:

i) To make a 75% return on investment within the first 15 months of operation. ii) To create a strong identity in the financial market, such that the sentence of financial lending is not complete without mentioning QMT. iii) To make profits in the process of creating gross opportunities for entrepreneurs and businesses, both in cash and in advice. iv) To be a major investor in emerging businesses in the area. v) Build a unique referral that is sustained by well-served customers.

CORE VALUES

The following virtues are held as our religious doctrines:

i) Transparency iii) Discipline iv) Integrity v) Diligence

SERVICES AND PRODUCTS OFFERED

We are vehement in our drive to only give the best in terms of our products and services. The services and products include:

• We offer Mortgage advice. • Management and serving of loan portfolios. • Mortgage products include fixed-rate, jumbos, Home equity lines of credit, adjustable-rate, and refinance.

SWOT ANALYSIS

Strength: We are confident in the success of our business as we have a lot of services and product options to offer under our mortgage brand name , our staffs are highly professional at what they do, and we mostly set up a product at low cost.

Weakness: There are lots of regulatory issues, as well as compliance costs. Also, we are faced with harsh legal liabilities.

Opportunity: We are entering into an environment that would certainly be receptive to the mortgage schemes as the area is still in its phase of adolescence, we have the chance of creating and marketing new approaches and we have the opportunity of spreading our mortgage tentacles throughout the industry.

Threats: Our approaches have not been patented, there has been an increase in the number of competitors as well, and being in a developmental stage, policies are formulated at an increasing rate that might pose challenges to the effectiveness of the company.

SUMMARY OF MARKET ANALYSIS

Recently there has been a recovery in the collapsed state of the economy; this is great news. It has been the market awakened in many industries especially the housing and estate sector.

Everyone believes they have got to do what they must do soon enough as there is some practical uncertainty as to the next trend the economy would take.

There would not be a riper time to explore the market. In this view, we have segmented the market into two categories:

• Current Home-owners • First-Time Home-owners

The former category is those that seek out advising services, as well as refinancing services. They look at loans that would aid them in renovation and remodeling purposes. We have made programs available to cater to such demands.

The latter are those who are intending to start up new construction. They seek out loans that would help them accomplish this aim, especially in these favorable times of the economy.

There are different options available to them.

It is important to note as well that the QMT Finance Company already has two locations in environments that are developing so rapidly; one is in St. Ruidies Avenue, and the other at Samphire layout.

STRATEGY AND MARKET APPROACH

To take over the growing market, we have adopted a few strategies:

We have dropped our down payment as low as 3% to accommodate those who find it difficult to make the financial requirements demanded.

We are also intensifying our advertisement platforms both online and offline.

Online in social media like Facebook, Linked In, Twitter, etc., and offline via channels such as local TV stations, radios, newspapers, and we are reaching out to legal institutions, lawyers, and attorneys to boost our societal strength and avoid legal controversies.

FINANCIAL PLAN

Assumptions Made:

• At the end of each month, all small debts would be settled. • The returns on mortgage portfolios would be at a rate of 4% each year on the assets.

Total Sales Revenues within a year $673, 700 Permits and Licenses $56, 300 Monthly Revenue Break-Even $21, 340 Cash Flow In Flow Out Flow $760, 530 $471, 330

This financial plan indicates the progress of the QMT Finance company. We are not done yet; we are still pursuing the mark of greater achievement.

GUIDE: RE/MAX Franchise Opportunity

This is a Mortgage Brokerage business plan sample. You can pattern your own in this style and save yourself so much energy, and very importantly secure investments.

Here is a sample business plan for a mortgage bank.

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Mortage Broker Business Plan Sample

AUG.30, 2018

mortgage brokerage business plan pdf

Do you want to start mortgage broker business?

Do you want to open a mortgage brokerage business? Well, opening a mortgage company is undeniably a business that involves a lot of effort, but the rate of return you will get after all your efforts in this business will compel you to thank yourself later for all those efforts. Everybody requires a house for shelter or a place for work, in the United States, many countrymen, as well as foreigners, aren’t capable of buying the real estate especially in big cities due to the sky-high costs.

A mortgage broker business is based on arranging transactions between the buyer and banks or real estate firms, on easy installments and down payments after taking a mortgage, debt property. The business is in great demand, as this is the only way for average or low-income people to have a property or vehicle of their own in big cities.

So, if you have planned to start this business, then don’t just build castles in the air, prepare a comprehensive and detailed business plan to take a startup. In case, the complications of writing a business plan are bothering you, you can take help from this sample business plan written on how to start a mortgage brokerage for a startup named, ‘Gary Brokerage’, owned by Gary Cleese.

Executive Summary

2.1 the business.

Gary Brokerage will be a licensed and registered mortgages company, owned by Gary Cleese. The company will be located in New York, and will initially operate in only one city. The business is aimed to provide housing and real estate facilities to a large audience by selling mortgages for them on easy installments. Gary has many mortgages of housing and commercial buildings from the real estate business plan , he has arranged an organized section in his company for gathering and checking the required documents of the borrowers, to provide them with mortgage pre-approval. After the borrower has met with the eligibility requirements, he/she will be given the ownership of the desired property with easy to pay installments in accordance with the buyers’ income.

2.2 Management

To start a mortgage brokerage , management is the core thing you need to focus. The business involves complicated inquiry and agreements, and long-term payments, so, you must organize each and everything, and must have a formulated management system for running this business.

Considering the importance of management system, Gary has prepared the list of employees, their jobs description, and their responsibilities in his mortgage lender business plan . Gary has decided to manage the business by himself with the help of two co-managers. The sample business plan of Gary Brokerage is given here for your help if you want to know how to start your own mortgage broker business.

2.3 Customers

Knowing your customers and their demands before starting a new business is a thing, that can help you a lot in devising your policies. Gary Brokerage is intended to serve the renters and foreigners in New York by helping them in purchasing and owning the real estate.

2.4 Target of the Company

The company aims at becoming the most recognized and the most renowned brokerage in the whole New York City within just six to seven months of the launch, by providing incomparable customer service to the inhabitants of the New York City.

Mortage Broker Business Plan - 3 Years Profit Forecast

Company Summary

3.1 company owner.

Gary Cleese will be the owner of Gary Brokerage; Gary is an LLB from the Columbia University and has been practicing law for more than fifteen years in the New York. Now, when he has received his huge shares from the legacy, he wants to invest them in profitable businesses. Gary has an in-depth knowledge about agreements and inquiry needed for taking loans, and other means of buying property. He is also well-known for his public speaking and management skills; he is starting a loan broker business , to invest his skills and money in a project which he finds the most suitable for himself.

3.2 Why the Business is being started

After receiving his shares, Gary has more than enough money to invest in some business. Throughout all his career, he has practiced law on dealing with the disputes on land ownership. This experience of Gary has made him a well-informed person about all types of land ownership, and tuned in with the pioneers of real estate and mortgage business. Gary has many unique mortgage broker marketing ideas , and he can only work on them by opening his own brokerage.

The other reason of starting a mortgage brokerage  is the rising demand of this business. Shelter is a basic necessity of every human, and in the big cities like New York, what most average people are deprived of is shelter; a land of their own. In New York, the median price to buy a house is $1.6 million, which makes it about impossible for a foreigner, a beginner entrepreneur or a new jobholder to own real estate. Such people prefer to pay some down payment and buy a mortgage on economical installments.

3.3 How the Business will be started

Gary has planned everything about his business, he even has got prepared his mortgage business plan template . A large building on the 5 th Avenue will be used as the company’s office. The business will be registered by the NMLS, Nationwide Multistate Licensing System & Registry. Gary has relations with top real estate owners, he will collect information about several mortgages to lend to the borrowers before starting the business. A team of trusted and dedicated members will be hired to assist Gary in running the business. The borrowers will have a variety of choices in buying a mortgage by remaining in their income range and needs. Organized and separate sections will be made for maintaining the proper inspections and records of both the borrowers and the lenders. Gary has decided to provide the borrowers with the right of recession, furthermore, he’ll have flexible policies in case of mortgage defaults.

Candle Making Business Plan - Startup Cost

The detailed start-up requirements, start-up funding, start-up expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities as forecasted by experts, are given below:

Services for customers

You have to decide your services before starting a mortgage lending company  because in a mortgage business you have to do all the pre-work required for a certain service you are going to provide. For example, if you decide to provide home equity loans, you have to work out on it to fulfill its requirements and employing the needed company persons for estimating property value as well as other chores.

So, if you are searching on how to start your own mortgage company , the foremost duty is to formulate a business plan including all the services you want to provide your customers as well as the detail that how will you manage to provide them with the services. If you are having difficulty in deciding your servicing, you can take help from many mortgage loan officer business plan examples available on the web like this one.

Gary Brokerage will provide the following services to its customers:

  • Brokering Residential Mortgage: We’ll guide the borrower and the lender and negotiate loans between them in buying residential properties. We’ll do research in finding the requirements of our clients, and will do all the settlements and legwork on their behalf.
  • Brokering Commercial & Industrial Real Estate: Commercial estate is any property bought for the purpose of generating profit. We’ll arrange the place and loans for the businessmen who want to start a new business or a branch of previously existing business but are not aware of the opportunities, taxations, and procedures of buying estate in the big city, we will save them from getting into the complications about which they knew not.
  • Brokering Home Equity Loans: The persons who own some kind of property, but require loans to finance their expenses such as medical, education etc. will be given loans according to the value of their property. Gary will hire the services of appraisers to determine the value of property and interest rate on loan.
  • Brokering Vehicle Loans: In case, you aren’t in a position to buy a vehicle in New York, don’t worry, Gary will buy the vehicle for you and you will need to pay the amount in the form of installments with very little interest.

Marketing Analysis of mortgage broker business

When you are taking an initiative and starting a totally new venture, you have to accustom various measures to understand the demands and requirements of the public you are going to target. The success of your startup will be entirely dependent on how efficiently you are able to communicate with the needs of your borrowers and terms and conditions of your lenders. An accurate marketing analysis is needed to be done to understand whether you will be able to start your own mortgage company  or not, or whether the market you are choosing for your startup has the stamina or potential of a new startup or not. In your mortgage company business plan , you must carry out proper marketing analysis to identify your target groups before time. You have to do it before starting a mortgage company , as it will assist you in defining your services and marketing strategy.

If you are looking for help on how to start a mortgage brokerage company , you can take help from this mortgage loan officer business plan sample written for the startup of Gary Brokerage. You can also seek help from several business plan samples available on the web. However, if you are starting a mortgage broking business on large scale, then instead of taking help from this mortgage broker business plan , you should hire an expert marketing analyst to make a mortgage broker marketing plan for your startup.

A successful marketing strategy can only be developed after knowing the target audience and potential customers. Considering the significance of marketing analysis Gary has hired marketing experts for carrying out extensive research to identify his target customers and develop a unique marketing strategy to attract them.

5.1 Market Trends

Mortgage brokering business has outstanding demand due to the increasing confidence of people in the services. Reasonable economic conditions and low interest rates have constrained a lot of people in the United States to buy vehicles and real estate on mortgage loans. The business is in the mainstream right now and according to IBISWorld, is still growing at an annual rate of 5.8 percent. There are more than 844,296 real estate brokering industries currently running in the United States, generating a revenue of $155 billion annually, employing 1.1 million population of the United States. The statistics clearly demonstrate that you can generate a large amount of profit provided that you plan and market your business successfully.

5.2 Marketing Segmentation

If you are starting a mortgage brokerage business , you have to make a detailed mortgage officer bank loan business plan   covering the details of how will you attract your target audience. In case, you need assistance in making your mortgage banker business plan , you can take help from this sample business plan of Gary Brokerage.

The detailed marketing segmentation of our target audience is as follows:

Mortage Broker Business Plan - Marketing Segmentation

5.2.1 Renters: Our marketing analyst has identified this as our biggest target group. Many people in the New York City live on rent and want to own their own estate, but the lack of knowledge and money make them unable to do so. These people include foreigners, new jobholders or people with average incomes. Such people can’t afford buying a house for themselves directly. So, in order to buy a land, or house they prefer to consult a mortgage broker, and own the property by paying reasonable installments and down payment on mortgage. Our experts have defined this category as the major borrowers of our service of brokering vehicle loans too. We believe that our low interest rate, simple policies and strategic location will surely pull them to our office.

5.2.2 Businessmen: Our next target customers will be the businessmen who want to extend their setup or want to open up a new branch but do not have time to indulge in the complications of buying estate. The executives usually want to bypass the tensions of buying estate or office in a new city of entirely new trends. They prefer to contact the mortgage brokers to arrange the setup for them. Our experts have identified this group as our potential borrowers of brokering commercial and industrial real estate mortgages.

5.2.3 Property Owners: Our business is meant to serve both the lenders and the borrowers. So, our experts have identified the real estate owners and the owners of automotive industries as our third target audience. Such people will contact us whenever they want to sell their property or automobiles.

The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Gary has high goals and aims regarding the growth of his business. The target which Gary Brokerage intend to fulfill within the five years of launch is to become the most trusted and renowned mortgage broker business in the New York City. Our business target is to provide excellent and reliable service to our lenders as well as borrowers. We aim at providing top-level customer service to all our target groups. Our every employee and salesperson will treat our customers with utmost respect so as to build a long-lasting relationship with them.

However, the company also has some long-term targets which are to be fulfilled after we have established in the New York City completely. These include opening another branch of Gary Brokerage in the current or neighboring city and increasing our services to serve more and more people.

5.4 Product Pricing

Setting the prices of your services is the most thoughtful and challenging task, as you have to keep up your finances and allure the customers at the same time. To introduce ourselves to a larger audience, we have decided to keep our prices lower than our competitors in the initial phase. However, we believe that the company will still be able to fulfill its financial goals.

Sales strategy is the most decisive and effective part if you are going to start a mortgage company . In your mortgage marketing plan , you must include the ways and methodologies to increase the sales of your services and generating more and more profit. Gary carried out an extensive research and also hired the services of financial experts to work in collaboration with the company’s advertising manager and administration to devise an effective sales strategy.

If you are not clear on how to start a mortgage company  or how to develop effective sales strategy, you can take help from this mortgage loan officer business plan template  of Gary Brokerage.

6.1 Competitive Analysis

Gary had the idea of the tough competition he will have to face in the market, that’s why he has come up with the excellent competitive edges that all his other competitors lack. Gary believe that if marketed properly, these competitive edges will give him unparalleled superiority in this business.

Our biggest competitive advantage lies in the power of our crew, each member has a thorough understanding of property types, credits, inspection systems and loan amounts. We have a team of dedicated and honest workers who will go all the way to provide maximum satisfaction and easy access to mortgage loans to our customers. Our trained and skilled professionals will do all the research and strenuous work on your behalf for you. Our dedicated workers will interpret your needs and range of spending before presenting the most suitable and economical property to you.

Secondly, Gary has terms and alliances with the leading real estate barons and developers alongside automotive shop owners. He can surely be able to find out the most suitable lender for you after understanding your needs. His former experience as a lawyer is another competitive advantage as he knows all the procedures, registry and verification systems. Moreover, Gary Brokerage is located on the main road which is easily accessible and visible by our target groups.

6.2 Sales Strategy

The success of a startup depends on the extent to which you are able to advertise your services. Considering the importance of targeting large audience, Gary Brokerage will advertise its services by using the following means:

  • We’ll make our website creating a login for our borrowers and lenders with ultimate cybersecurity, by which they will be able to pay the installments through their Payoneer or PayPal account
  • We’ll create a Facebook page to leverage the opportunity of advertising our services to a large audience
  • Before using our services, you can get to know about our work efficiency by reading the feedbacks of our clients and lenders on our website or Facebook page
  • We’ll fix our posters on bustling areas to let the people know about us
  • We’ll provide maximum ease to our customers and will keep our interest rate as low as possible

6.3 Sales Forecast

We believe that if people try our services for once, they will surely trust us again for the rest of their lives. Considering the market demand and quality of our services, our sales pattern is expected to increase with the coming years. By analyzing our market segmentation strategy, our experts have forecasted the following sales on yearly basis which are summarized in the column charts.

Mortage Broker Business Plan - Unit Sales

The detailed information about sales forecast, total unit sales, total sales is given in the following table:

6.4 Sales Monthly

Mortage Broker Business Plan - Sales Monthly

6.5 Sales Yearly

Mortage Broker Business Plan - Sales Yearly

Personnel plan

The crucial step before starting a mortgage broker business  is to find a team of hardworking and dedicated workers. Your marketing and sales strategy can only help you in gaining customers, but the enthusiastic employees can help you in maintaining those customers. So, before you start mortgage company , hire your crew wisely as you will be solely dependent on them.

For those people who want to know how to open a mortgage brokerage business , we have provided here the sample business plan of Gary Brokerage covering the details of the staff, he will hire.

7.1 Company Staff

Gary will act as the Chief Operating Officer of the company and will discipline the manager and the company by himself. The company will initially hire following people:

  • 2 General Managers to manage the operations
  • 10 Mortgage Brokers and Loan Services Consultants for brokering mortgages
  • 4 HR Managers for arranging meetings of borrowers and lenders and for carrying out induction for recruiting new member
  • 4 Administrators / Accountants to maintain financial records
  • 2 IT Experts to manage the company’s website and social media pages
  • 5 Data Analysts to interpret and organize data
  • 2 Sales and Marketing Executives responsible for discovering new ventures.
  • 2 Drivers for routine works
  • 3 Cleaners for the maintenance of company’s office
  • 1 Front Desk Officer to act as a receptionist in the company office

All the employees will be trained for their duties and works, before the initiation of the startup.

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for the next three years.

Financial Plan

The last step to be taken to start a mortgage business  is to formulate your financial plan. Financial plan is undoubtedly, the most decisive part of the success of a startup especially if you want to grow your business. Financial planning before starting mortgage company can help you in meeting your long-term financial goals, by monitoring your flow patterns and spending. Your comprehensive and accurate financial plan can help you in facing the worst situations and ups and downs you can encounter while running your business.

Considering the importance of an accurate and comprehensive financial plan, Gary has hired the services of a financial planner advisor to make a financial plan for his business. Gary Brokerage will be mainly financed by Gary himself. No equity funding or outside loan will be required unless the company expands faster than forecasted. You can take help from this sample financial plan if you need help about how to start a mortgage brokerage business , and you can also find many other business plan samples available online. However, the best choice for if you are lacking knowledge on how to start mortgage broker business or how to make an effective financial plan is to hire a professional to make precise financial plan for you, saving you from the trouble of gathering all information by yourself.

8.1 Important Assumptions

The company’s financial projections are forecasted on the basis of following assumptions. These assumptions are quite conservative and are also expected to show deviation but to a limited level such that the company’s major financial strategy will not be affected.

8.2 Brake-even Analysis

The following graph shows the company’s Brake-even Analysis.

Mortage Broker Business Plan - Brake-even Analysis

The following table shows the company’s Brake-even Analysis.

8.3 Projected Profit and Loss

The following table show the company’s expected Profit and Loss situation on the monthly and yearly basis.

8.3.1 Profit Monthly

The following charts shows detailed information about profit and loss, and total cost of sales.

Mortage Broker Business Plan - Profit Monthly

8.3.2 Profit Yearly

Mortage Broker Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Mortage Broker Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Mortage Broker Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

Mortage Broker Business Plan - Projected Cash Flow

The following table shows detailed data about pro forma cash flow, subtotal cash from operations, subtotal cash received, sub-total spent on operations, subtotal cash spent.

8.5 Projected Balance Sheet

The following projected balance sheet shows data about total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities and capital.

8.6 Business Ratiosы

The following table shows data about business ratios, ratio analysis, total assets, net worth.

Download Mortage Broker Business Plan Sample in pdf

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Mortgage Broker Business Plan Template

Mortgage Broker Business Plan Template in Word, Google Docs, PDF, Apple Pages

Download this Mortgage Broker Business Plan Template Design in Word, Google Docs, PDF, Apple Pages Format. Easily Editable, Printable, Downloadable.

A professional business plan specifically tailored for a mortgage brokerage firm. It encompasses market analysis, lead generation strategies, and financial projections. This comprehensive plan outlines the company's competitive advantage, target market, and operational procedures to establish a successful mortgage brokerage business.

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Mortgage Brokerage Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Financial Service Industry » Lending & Loan Brokerage Business

Mortgage Brokerage Business

Are you about starting a mortgage brokerage firm ? If YES, here’s a complete sample mortgage brokerage firm business plan template & feasibility report you can use for FREE to raise money.

In reality, if you must be successful with your Mortgage Brokerage business, you must expand your network and build a thriving relationship with both key players in the real estate industry and banks.

This is so because as a Mortgage brokerage operator, you will definitely depend on the corporation of both your bank and Real Estate firms to be able to make profits since all you get is commissions from the loan payments.

It is important to note at this juncture that if you are not careful with this kind of business, you might land yourself in trouble and be sued.  That is why you must follow due processes before securing a loan for your client.

If you have clients that always default in their monthly payments, then you stand the chance of running out of business in no distant time. To secure yourself from any embarrassment, it is important that you buy liability insurance for your Mortgage Brokerage Business.

A Sample Mortgage Brokerage Firm Business Plan Template

1. industry overview.

Mortgage Brokerage firms are established with the sole aim of providing a convenient platform in form of long term loan to those who want to buy their own property. With the loan you get from the bank via a mortgage brokerage firm, you can finance any property of your choice, as long as you pass the screening and evaluation process.

The screening and evaluation is put in place so as to ensure that due process is followed before issuing a loan and the person receiving the loan must be credit worthy.

In other words, Mortgage Brokerage firms stand as the middle men between a Bank and Mortgage bank as the case may be and the individual or organization seeking to buy a property. Anybody, or group of investors may start and own a  mortgage brokerage firm as long as they meet the requirements for establishing such organization in the country they intend establishing the business.

The Mortgage Brokerage Services industry is indeed in a mature stage of its growth. The industry is characterized by growth in line with the overall outlook of the economy, consolidation from the largest players in the industry and wholehearted market acceptance of industry products and services.

The Mortgage Brokerage services line of business will continue to be in high demand by business establishment and individuals in the united states, most especially as the number of businesses and the need for accommodation increases.

The Mortgage Brokerage Services industry is indeed a major sector of the economy of the United States of America which generates a whooping sum of well over $8 billion annually from more than 12,609 registered and licensed mortgage brokerage firms scattered all around the United States of America.

The industry is responsible for the employment of well over 44,756 people. Experts project the mortgage brokerage services industry to grow at a 6.3 percent annual rate. The establishment (online brokerage firms) in this industry that has a dominant market share in the United States of America are; Zillow and Lending Tree.

Over and above, starting a mortgage brokerage firm requires professionalism and good grasp of the financial and real estate market.

Besides, you would need to get the required certifications and license and also meet the standard capitalization for such business before you can be allowed to start a mortgage brokerage firm in the United States; the industry is heavily regulated to guide against fraud and criminality.

2. Executive Summary

Pentagon Mortgage Brokerage Firm, LLC is a registered and licensed mortgage brokerage firm that will be located in the heart of Albany – New York. We have been able to secure a standard office facility in the heart of the city.

We will offer services such as brokering residential mortgages, brokering commercial and industrial mortgages, brokering home equity loans, brokering equipment financing arrangements, brokering vehicle loans, brokering residential mortgages online, brokering mortgage refinances online, brokering home equity loans online, providing an online mortgage marketplace and providing related mortgage cum loan advisory and consultancy services.

We are aware that to run an all – round and standard mortgage brokerage firm can be demanding which is why we are well trained, certified and equipped to perform excellently well.

Pentagon Mortgage Brokerage Firm, LLC is a client – focused and result driven mortgage brokerage firm that will provide broad- based mortgage brokering and loan brokering services at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will offer standard and professional services to all to our individual clients, and corporate clients. We will ensure that we work hard to meet and surpass our clients’ expectations whenever they patronize our services.

At Pentagon Mortgage Brokerage Firm, LLC our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are well experienced in the mortgage brokerage and loan industry.

Pentagon Mortgage Brokerage Firm, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Our plan is to position the business to become one of the leading brands in the mortgage brokerage and loan brokerage services line of business in the whole of New York, and also to be amongst the top 20 mortgage brokerage firms in the United States of America within the first 10 years of fully launching the business.

This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are enthusiastic and confident that Albany – New York is the right place to launch our mortgage brokerage firm before sourcing for clients from other cities in The United States of America.

Pentagon Mortgage Brokerage Firm, LLC is founded by, Mr. Campbell Smith and his immediate family. Campbell Smith has good grasp of the real estate and loan industry.

He has well over 15 years of experience working at various capacities within the financial consulting industry with strong bias for mortgage in the United States of America. Mr. Campbell Smith graduated from both University of California – Berkley with a Degree in Accounting, and University of Harvard (MBA).

3. Our Products and Services

Pentagon Mortgage Brokerage Firm, LLC is going to offer varieties of services within the scope of the mortgage brokerage and loan services industry in the United States of America and of course on the global stage. Our intention of starting our mortgage brokerage firm in Albany – New York is to leverage on the opportunities available in the city.

We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our business offering are listed below;

  • Brokering residential mortgages
  • Brokering commercial and industrial mortgages
  • Brokering home equity loans
  • Brokering equipment financing arrangements
  • Brokering vehicle loans
  • Brokering residential mortgages online
  • Brokering mortgage refinances online
  • Brokering home equity loans online
  • Providing an online mortgage marketplace
  • Providing other related loan cum mortgage consulting and advisory services

4. Our Mission and Vision Statement

  • Our vision is to build a mortgage brokerage and loan services brand that will become the number one choice for individuals, smaller businesses and corporate clients in the whole of Albany – New York. Our vision reflects our values: integrity, security, service, excellence and teamwork.
  • Our mission is to provide professional, reliable and trusted mortgage brokerage and loan services that assist individuals, start – ups, corporate organization, and non-profit organizations in sorting out their mortgage and loan related concerns.
  • We will position the business to become one of the leading brands in the mortgage brokerage and loan services line of business in the whole of Albany – New York, and also to be amongst the top 20 mortgage brokerage and loan services firms in the United States of America within the first 10 years of operations.

Our Business Structure

Pentagon Mortgage Brokerage Firm, LLC, is a mortgage brokerage and loan services firm that intend starting small in Albany – New York, but hope to grow big in order to compete favorably with leading mortgage brokerage and loan services firms in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

Ordinarily we would have settled for two or three staff members and settle for just online mortgage brokerage services, but as part of our plan to build a standard and world class mortgage brokerage and loan services firm in Albany – New York we have perfected plans to get it right from the beginning.

The picture of the kind of mortgage brokerage and loan services business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around Albany – New York as long as they are willing and ready to work with us to achieve our business goals and objectives.

At Pentagon Mortgage Brokerage Firm, LLC, we will ensure that we hire people that are qualified, hardworking, and creative, result driven, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer
  • Mortgage and Loan Brokerage Consultants

Admin and HR Manager

Marketing and Sales Executive

  • Customer Care Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Mortgage Brokerage and Loan Services Consultants

  • Responsible for Brokering residential mortgages
  • Responsible for Brokering commercial and industrial mortgages
  • Responsible for Brokering home equity loans
  • Responsible for Brokering equipment financing arrangements
  • Responsible for Brokering vehicle loans
  • Responsible for Brokering residential mortgages online
  • Brokering mortgage refinances online services
  • Brokering home equity loans online services
  • Providing an online mortgage marketplace services
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Designs job descriptions with KPI to drive performance management for clients
  • Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Oversees the smooth running of the daily office activities.
  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
  • Writes winning proposal documents, negotiate fees and rates in line with company policy
  • Responsible for handling business research, marker surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • create reports from the information concerning the financial transactions recorded by the bookkeeper
  • Prepares the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Client Service Executive / Front Desk Officer

  • Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
  • Receives parcels / documents for the company
  • Distribute mails in the organization
  • Handles any other duties as assigned my the line manager

6. SWOT Analysis

Pentagon Mortgage Brokerage Firm, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured mortgage brokerage and loan services firm that can favorably compete in the highly competitive mortgage brokerage market in the United States and the world at large.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Pentagon Mortgage Brokerage Firm, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Pentagon Mortgage Brokerage Firm, LLC;

Aside from our robust business network with financial lending institutions and players in the real estate industry, our core strength lies in the power of our team; our workforce. We have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details and to deliver excellent returns for the business. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

As a new mortgage brokerage and loan services firm in Albany – New York, it might take some time for our organization to break into the market and gain acceptance especially from corporate clients in the already saturated mortgage brokerage services industry; that is perhaps our major weakness. So also, we may not have enough budget to give our business the kind of publicity we would have loved to.

  • Opportunities:

The opportunities in the mortgage brokerage and loan services industry is massive considering the number of individuals, start – ups and of course corporate organizations who can’t afford to do without the services of mortgage brokerage and loan services. As a standard and well – positioned mortgage brokerage and loan services firm, we are well – equipped and ready to take advantage of any opportunity that comes our way.

Some of the threats that we are likely going to face as a mortgage brokerage and loan services firm operating in the United States are unfavorable government policies, the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing / spending power. There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

  • Market Trends

The mortgage brokerage and loan services industry is indeed a very large industry and of course it is one industry that works for individuals and businesses across different industries. If you are conversant with the trend in the mortgage brokerage and loan services industry, you will realize that loads of people are leveraging on the services provided by the industry to empower themselves and businesses.

The truth is that, without the services of players in the mortgage brokerage and loan services industry, it will be pretty difficult for some individuals and even start – up businesses to access loan or save – up to purchase a property.

They are responsible for helping individuals and businesses bypass the bureaucracies involved in obtaining loans from banks and other financial institutions et al. Another notable trend in the mortgage brokerage and loan services industry is that in the last five years, the industry has performed impressively as a large reduction in unemployment boosted the revenue generated in the industry.

So also, the mortgage brokerage and loan services industry has benefited from the advancement of online platforms. Going forward, increasing product penetration and of course an expanding customer base is expected to drive growth in the industry.

8. Our Target Market

The demographic and psychographics composition of those who need the services of mortgage brokerage and loan services firms cuts across individuals, small businesses and large corporations.

Pentagon Mortgage Brokerage Firm, LLC will initially serve small to medium sized business, from new ventures to well established businesses and individual clients, but that does not in any way stop us from growing to be able to compete with the leading mortgage brokerage and loan service firms in the United States.

As a standard and licensed mortgage brokerage and loan service firm, Pentagon Mortgage Brokerage Firm, LLC offers a wide range of mortgage brokerage and loan related services hence we are well trained and equipped to services a wide range of clientele base.

Our target market cuts across businesses of different sizes and individuals. We are coming into the industry with a business concept that will enable us work with individuals, small businesses and bigger corporations in and around Albany – New York and other cities in the United States of America.

Below is a list of the businesses and organizations that we have specifically designed our products and services for;

  • Real Estate Investors
  • Churches and other religious organizations
  • Corporate Organizations
  • Individuals and households
  • Entrepreneurs and Start – Ups

Our Competitive Advantage

We are quite aware that to be highly competitive in the mortgage brokerage and loan services industry means that we should be able to make available easy to access mortgage loans; bypassing the difficult to surmount hurdles of obtaining loans from the bank and other financial institutions.

Pentagon Mortgage Brokerage Firm, LLC might be a new entrant into the mortgage brokerage and loan services industry in the United States of America, but the management staffs and owners of the business are considered gurus. They are people who are core professionals and licensed and highly qualified mortgage brokerage and loan services consultants in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare packages will be amongst the best within our category (start – ups mortgage brokerage and loan services firms) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Pentagon Mortgage Brokerage Firm, LLC is established with the aim of maximizing profits in the mortgage brokerage and loan services industry and we are going to go all the way to ensure that we do all it takes to attract both corporate and individual clients on a regular basis.

Pentagon Mortgage Brokerage Firm, LLC will generate income by offering the following mortgage brokerage and loan services for individuals, real estate companies, NGOs and for corporate organizations;

10. Sales Forecast

The fact that it is pretty difficult for the average individual and start – ups out there to obtain mortgage loans from banks and other financial institutions gives leverage to mortgage brokerage and loan services firms like ours. This goes to show that the potential to generate income for the business cannot be ruled out.

We are well positioned to take on the available market in Albany – New York and on our online platforms and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond Albany – New York to other cities in the United States of America.

We have been able to critically examine the mortgage brokerage and loan services market and have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Albany – New York.

Below are the sales projection for Pentagon Mortgage Brokerage Firm, LLC, it is based on the location of our business and the wide range of mortgage brokerage and loan services that we will be offering;

  • First Fiscal Year-: $250,000
  • Second Fiscal Year-: $550,000
  • Third Fiscal Year-: $950,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition amongst mortgage brokerage and loan services firms in the United States of America, hence we have been able to hire some of the best business developer to handle our sales and marketing.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis, so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent service deliveries speaks for us in the market place; we want to build a standard mortgage brokerage and loan service business that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).

Our goal is to grow our mortgage brokerage and loan services firm to become one of the top 20 mortgage brokerage and loan services firms in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the Albany – New York but also in other cities in the United States of America.

Pentagon Mortgage Brokerage Firm, LLC is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our business by sending introductory letters alongside our brochure to households, corporate organizations, schools, players in the real estate sector, and other key stake holders in Albany – New York and other cities in the United States of America.
  • Advertise our business in relevant financial and business related magazines, newspapers, TV stations, and radio station.
  • List our business on yellow pages ads (local directories)
  • Attend relevant international and local real estate , finance and business expos, seminars, and business fairs et al
  • Create different packages for different category of clients (individuals, start – ups and established corporate organizations) in order to work with their budgets
  • Leverage on the internet to promote our business
  • Engage direct marketing approach
  • Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the hearts of our target market. We are set to take the mortgage brokerage and loan services industry by storm – which is why we have made provisions for effective publicity and advertisement of Pentagon Mortgage Brokerage Firm, LLC.

Below are the platforms we intend to leverage on to promote and advertise Pentagon Mortgage Brokerage Firm, LLC;

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms; we will also advertise our mortgage brokerage and loan services firm on financial magazines, real estate and other relevant financial programs on radio and TV
  • Sponsor relevant community based events / programs
  • We will leverage various online platforms to promote the business. It makes it easier for people to enter our website with just a click of the mouse. We will take advantage of the internet and social media platforms such as; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
  • Install our Bill Boards on strategic locations all around Albany – New York.
  • Engage in road show from time to time all around Albany – New York to promote our brand
  • Distribute our fliers and handbills in target areas all around Albany – New York
  • Ensure that all our workers wear our branded shirts and all our official vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

It is a fact that mortgage brokerage and loan services both online and offline is driven by the demand of availability of real estate / properties which is why the prices cannot be fixed; prices for properties fluctuates on a regular basis. Besides, mortgage brokerage and loan services firms rely on commissions since they serve as middlemen between those seeking for mortgage loans and mortgage banks and other financial institutions / loan lending institutions.

At Pentagon Mortgage Brokerage Firm, LLC we will keep the prices of our services and commissions a little bit below the average market rate for all of our customers by keeping our overhead low and by collecting services charges in advance from corporate organizations and individuals who would hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.

  • Payment Options

At Pentagon Mortgage Brokerage Firm, LLC our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

  • Payment by via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft
  • Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our service charge.

13. Startup Expenditure (Budget)

Starting a mortgage brokerage and loan firm can be cost effective; this is so because on the average, you are not expected to acquire expensive machines and equipment. Aside from the working capital or capitalization as is required by the regulating body.

Basically what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furniture and equip the office, the amount to purchase the required software applications, the amount needed to pay bills, promote the business and obtain the appropriate business license and certifications.

This is the financial projection and costing for starting Pentagon Mortgage Brokerage Firm, LLC;

  • The Total Fee for incorporating the Business in the United States of America – $750.
  • The budget for basic insurance policy covers, permits and business license – $2,500
  • The Amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive) – $40,000.
  • The amount required for capitalization (working capital) – $50,000
  • The Cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $5,000
  • The cost for purchase of the required software applications (CRM software, Accounting and Bookkeeping software and Payroll software et al) – $10,500
  • The Cost of Launching your official Website – $600
  • Budget for paying  at least three employees for 3 months plus utility bills – $10,000
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
  • Miscellaneous: $1,000

Going by the report from the market research and feasibility studies conducted, we will need over one hundred and fifty thousand ( 150,000 ) U.S. dollars to successfully set – up a medium scale but standard mortgage brokerage and loan services firm in the United States of America.

Generating Funding / Startup Capital for Pentagon Mortgage Brokerage Firm, LLC

Pentagon Mortgage Brokerage Firm, LLC is a family business that will be owned and managed by Mr. Campbell Smith and his immediate family members. They are the sole financial of the firm, but may likely welcome partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000 ) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Pentagon Mortgage Brokerage Firm, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our mortgage brokerage and loan services (service charges and commissions) a little bit cheaper than what is obtainable in the mortgage brokerage and loan services industry and we are well prepared to survive on lower profit margin for a while.

Pentagon Mortgage Brokerage Firm, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check:>Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of All form of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Leasing, renovating and equipping our facility: Completed
  • Generating part of the start – up capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In Progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress

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Creating a mortgage broker business plan

mortgage brokerage business plan pdf

As a mortgage broker, it is important to keep on top of all areas of your business, while also planning ahead for the future. As the old saying goes, failing to plan is planning to fail. 

Having a business plan helps brokers to take the reins of their business and enables them to set a sense of direction for their business. 

Here is how you can build a robust plan for your business. 

Manage those bumps in the road  

A business plan is a description of your business and its future. It documents what you plan to do and when you plan to do it, helping you to set realistic goals for your business. 

Analysing you and your business can help you to anticipate any challenges you may face and help you overcome them. 

It also helps you to think more strategically, by laying out a plan for a point in the future (usually the next three to five years), by which time your business will most likely have a different set of resources, as well as greater profitability and increased assets. 

Why have a business plan as a mortgage broker?

  • Helps you prioritise 
  • Gives you control over your business 
  • It is vital to help you with your own finances 
  • Helps you establish your business focus 
  • Attracts potential business partners to help you grow your business  

What to include in your business plan: 

1. Your mission statement  

This is your why. Here is where you articulate why your broker business exists and what you aim to achieve. You should spend the time to think about your values and principles that guide your business and write these into your business plan.  

2. Your value proposition  

A great value proposition helps your customers understand the benefits of choosing your business.  An effective way to think about your value proposition is to think about it in terms of a value proposition map that breaks down the customer jobs, customer pains, customer gains and then pairs these with your products and services to see how your business can create customer gains and relieve customer pains. 

mortgage brokerage business plan pdf

3. Market Analysis  

Get to know the Australian mortgage broking industry and market. This can include things like market size, customer segments, lending trends and other growth opportunities. You should gain a clear understanding of your current customers, what segments they belong to, their characteristics and any patterns you can identify. 

As an AFG broker, you can make data-informed business decisions with AFG Analytics using easy-to-use dashboards and reports to identify trends in the market, understand your customers, break down your performance metrics and gain a clear understanding of your portfolio and the wider Australian market. 

mortgage brokerage business plan pdf

4. Target audience  

You can define your target market based on factors such as demographics, income levels, geographic location and financial needs. The important thing to consider is whatever segmentation of the market you decide to target aligns with your experience and specialisation. Evaluate your own knowledge, skills and experience in the industry, for example, you might have expertise in first-homebuyers or investment properties – whatever your niche, make sure you have the specialist knowledge to back it up. 

5. Branding and Positioning  

When designing your brand think about how you are positioning your business in the mind of your customers. What do you want them to think about you? Are you looking to convey yourself as professional and trustworthy? Or maybe friendly and efficient? Remember you can’t be all things to all people, it’s best to be decisive and occupy a clear position than to spread yourself too thin and have nothing that distinguishes you.  

Once you’ve come up with your logo, colours and visual identity, remember that consistency is key! Keep an eye on all your marketing going out the door to ensure that it is on brand and consistent at all times. 

6. Digital Presence  

Your digital presence is very likely the first thing your customers will see. Ensure that your website is both professional and functional. Your website is where you can showcase your services, build trust with potential customers and start to generate leads.  

If you want to simplify setting up your digital presence, AFG brokers have access to our SMART marketing program. SMART will not only provide you with a professional website that you can customise to your brand, but it will also provide lead magnets to drive leads, and it will also give you a comprehensive range of customer email campaigns that manage your new customers, loan life-cycle communications and customer retention. 

How are you going to market your business?

AFG’s multi-award-winning SMART platform is designed for brokers who want to see their business soar. Find out more about SMART.

7. Lead Generation

Outline exactly how you’re going to attract leads and potential new clients to your business. There are several different strategies you can employ to drive leads and new clients, such as developing a referral agreement with a real estate agent, financial planner, accountant or other professionals, optimizing your website for Google, content marketing, using lead magnets on your website to capture customer contact details, encouraging referrals from your customers.

Looking to set up a referral network? Check out our guide to Building Profitable Referral Networks .

In your business plan, it’s a great idea to answer questions about your company structure, who you may have in mind to take over your business, whether you’ll consider selling your business, and what will happen to your staff and brokers. – Donna Cooper, AFG Support Manager

8. Operations and Management  

Detail your business operations, including your physical location, technology infrastructure, and key equipment or software. Outline what your technology stack looks like, what do you need to be efficient and what the costs are involved. You will also want to provide an overview of who will be working in your business and what their roles and responsibilities will be. Unsure of how you want to structure the people strategy of your business? You may want to consider a Strategic Workforce Plan. 

mortgage brokerage business plan pdf

9. Product and Service offering  

Detail the mortgage broking services you offer, including loan types that you specialise in, which lenders you are accredited with – detail how these lenders align with your target audience and specialisations. Highlight any additional services, such as commercial finance, personal loans, or asset finance that you provide to add value for your clients. 

10. Financial Projections  

Include financial forecasts for the next three to five years, including projected revenue, expenses, and profitability. Provide a breakdown of the sources of revenue, such as commissions or fees, and any anticipated growth rates. Include a budget, cash flow statement, and balance sheet. This section should also address any funding requirements or investment opportunities. 

11. Risk Management  

Identify the potential risks and challenges that your mortgage broking business may face. Discuss strategies to mitigate these risks, such as having proper compliance procedures in place, staying updated with regulatory changes, or having a backup plan in case of economic downturns. Address cybersecurity risks and data protection measures. 

12. Implementation Plan  

Outline the steps and timeline for implementing your business strategies and achieving your goals. Break down major milestones and assign responsibilities. This section should provide a clear roadmap for the execution of your business plan. 

Be a massive SWOT!

A SWOT analysis is a useful strategic planning tool you can use for your business.

SWOT stands for strengths, weaknesses, opportunities, and threats.

Strengths and weaknesses are internal to your business and somewhat within your control and can change. For example, your team, your location and your business partners.

Opportunities and threats are going on outside of your business in the larger market, such as your competitors, new laws that are introduced, or government grants provided to borrowers.

SWOT is a key part of preparing your plan as it’ll help to make everything more realistic.

Pick an aggregator who knows your business

As your business grows, it becomes harder to find peers and advisers to push your growth, teach you new strategies and help take your business to a whole other level.  

If your current aggregator isn’t quite hitting the mark, it may be time to accelerate your growth with a switch to AFG.  

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Mortgage Brokerage

Back to All Business Ideas

How to Start a Mortgage Brokerage

Written by: Mark Stewart

Mark Stewart is the in-house Certified Public Accountant, an accomplished author and financial media specialist.

Published on May 27, 2022 Updated on November 29, 2023

How to Start a Mortgage Brokerage

Investment range

$2,850 - $10,100

Revenue potential

$81,000 - $405,000 p.a.

Time to build

0 – 3 months

Profit potential

$73,000 - $162,000 p.a.

Industry trend

Almost everyone who purchases a home gets a mortgage loan. Mortgage brokers facilitate these loans by serving as a go-between and negotiating favorable rates for the buyer. 

The US loan brokers industry has fluctuated during the last decade but has still expanded more than 20% in that period, and is set for further growth in the years ahead. If you have experience in mortgages or want to learn, you could start your own brokerage and make a good living while providing an invaluable service for new homeowners. 

But in addition to mortgage knowledge, you’ll need to learn what it takes to start a business. Lucky for you, this step-by-step guide is loaded with all the information you need to start a successful mortgage brokerage. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a mortgage brokerage has pros and cons to consider before deciding if it’s right for you. 

  • Make Dreams Come True – Help people get the homes of their dreams
  • Good Money – Good commissions based on loan amount
  • Low Startup Costs – Few expenses to get the business up and running
  • Education and Licensing – Classes and a mortgage broker’s license required
  • Crowded Market – Compete with established mortgage brokers and lenders

Mortgage brokerage industry trends

Industry size and growth.

  • Industry size and past growth – The US loan brokers industry is worth $11.7 billion in 2022 after expanding 21% in the last decade.(( https://www.ibisworld.com/industry-statistics/market-size/loan-brokers-united-states/ ))
  • Growth forecast – The US loan brokers industry is projected to grow modestly over the next five years.
  • Number of businesses – In 2022, 12,418 loan brokers businesses are operating in the US(( https://www.ibisworld.com/industry-statistics/number-of-businesses/loan-brokers-united-states/ ))
  • Number of people employed – In 2022, the US loan brokers industry employs 47,808 people.(( https://www.ibisworld.com/industry-statistics/employment/loan-brokers-united-states/ ))

mortgage brokerage industry size and growth

Trends and challenges

Trends in the mortgage brokerage industry include:

  • Technology is streamlining the mortgage loan process, helping people get into their new homes faster and simplifying the work of mortgage brokers.
  • Non-bank lenders are capturing more of the mortgage market, so mortgage brokers need to develop relationships with those lenders.

Challenges in the mortgage brokerage industry include:

  • Inflation is causing interest rates to rise, which could negatively impact the mortgage brokerage industry.
  • More and more people are turning to online lenders for their mortgage needs, skipping the mortgage brokerages. 

mortgage brokerage Trends and Challenges

Demand hotspots

  • Most popular states – The most popular states for loan officers are Maryland, New York, and North Carolina . (( https://www.zippia.com/loan-officer-jobs/best-states/ ))
  • Least popular states – The least popular states for loan officers are Utah, California, and Nebraska.

mortgage brokerage demand hotspots

What kind of people work in mortgage brokerages?

  • Gender – 44.7% of loan officers are female, while 55.3% are male.(( https://www.zippia.com/loan-officer-jobs/demographics/ ))
  • Average level of education – The average loan officer has a bachelor’s degree.
  • Average age – The average loan officer in the US is 44.9 years old.

mortgage brokerage demographics

How much does it cost to start a mortgage brokerage business?

Startup costs for a mortgage brokerage if you run your business from home are about $3,000. Costs include a computer and a marketing budget. If you start your brokerage from an office, costs will be about $10,000. 

Visit the resource center of the Nationwide Mortgage License System for help with education and licensing. 

How much can you earn from a mortgage brokerage business?

Mortgage brokers are paid by the lender a commission of 1% to 2% of the loan amount, for an average of 1.5%. The average mortgage loan size in the United States is $450,000. Your profit margin if you’re working from home should be high, around 90%.

In your first year or two, you could work from home and close one mortgage loan per month, bringing in $81,000 in annual revenue. This would mean $73,000 in profit, assuming that 90% margin. 

As your business gains traction and you get referrals, sales could climb to five loans a month. At this stage, you’d rent a commercial space and hire staff, reducing your margin to around 40%. With annual revenue of $405,000, you’d make a tidy profit of $162,000.

mortgage brokerage earnings forecast

What barriers to entry are there?

There are a few barriers to entry for a mortgage brokerage. Your biggest challenges will be:

  • The education and licensing requirements to be a mortgage broker
  • Drawing clients from other brokers, banks, and online lenders

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Step 2: hone your idea.

Now that you know what’s involved in starting a mortgage brokerage, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research mortgage brokerages in your area to examine their products and services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing an independent mortgage broker that works with a certain mortgage lender or financial institution . 

mortgage brokerage business plan pdf

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as residential mortgage loans or investment property mortgage loans.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

You’ll need to develop relationships with multiple mortgage lenders and financial institutions so that you can offer their loan products. They will set you up on their system so that you can handle the mortgage application and processing. You can determine if you want to do residential mortgage loans, investment property loans, or both. 

How much should you charge for mortgage loans?

The lender generally determines the fee you’ll be paid and it should be between 1% and 2% of the loan amount. You can also charge an application fee for additional revenue. Your profit margin when you’re working from home should be about 90%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be anyone buying a home or investment property. You should spread out your marketing to include sites like TikTok, Instagram, Facebook, and LinkedIn. 

A big source of your business should be real estate agents, so you should try to form relationships with as many as possible. You can connect with them on LinkedIn or find them on Google and Yelp and call them directly. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

  • Central location accessible via public transport
  • Ventilated and spacious, with good natural light
  • Flexible lease that can be extended as your business grows
  • Ready-to-use space with no major renovations or repairs needed

mortgage brokerage idea rating

Step 3: Brainstorm a Mortgage Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

  • Short, unique, and catchy names tend to stand out
  • Names that are easy to say and spell tend to do better 
  • Name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “mortgage broker” or “mortgage loans”, boosts SEO
  • Name should allow for expansion, for ex: “Alliance Mortgage Group” over “Rural Housing Mortgage Company” or “First-Time Home Buyers Mortgage Co.”
  • Avoid location-based names that might hinder future expansion
  • Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Mortgage Brokerage Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

  • Executive Summary : A brief summary of the mortgage brokerage business plan, highlighting its key points and objectives.
  • Business Overview : An introduction to the mortgage brokerage, including its mission, vision, and the problem it aims to solve.
  • Product and Services : A description of the mortgage brokerage’s services, such as loan origination, refinancing, and mortgage advice.
  • Market Analysis : An examination of the mortgage market, including target customers, demographics, and trends.
  • Competitive Analysis : Evaluation of the competition in the mortgage brokerage industry, identifying strengths and weaknesses.
  • Sales and Marketing : Strategies for attracting and retaining customers, including advertising, networking, and lead generation.
  • Management Team : Profiles of the key individuals running the mortgage brokerage, highlighting their qualifications and roles.
  • Operations Plan : An outline of day-to-day activities, systems, and processes required to run the business efficiently.
  • Financial Plan : Projections for revenue, expenses, and profits, including startup costs and funding sources.
  • Appendix : Supplementary materials such as detailed financial statements, resumes, or legal documents that support the business plan.

what to include in a business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to mortgage brokerages. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your mortgage brokerage will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

  • Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
  • General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
  • Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
  • C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
  • S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

types of business structures

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

mortgage brokerage business plan pdf

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

mortgage brokerage business plan pdf

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

  • Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
  • SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
  • Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
  • Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
  • Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
  • Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a mortgage brokerage business. 

types of business financing

Step 8: Apply for Mortgage Brokerage Business Licenses and Permits

Starting a mortgage brokerage business requires obtaining a number of licenses and permits from local, state, and federal governments.

You’ll need a mortgage broker’s license. You can find a host of resources to help you with education and licensing through the Nationwide Mortgage License System at their NMLS resource center . You can also check with your state for requirements. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your mortgage brokerage business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

  • General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
  • Business Property: Provides coverage for your equipment and supplies.
  • Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
  • Worker’s compensation: Provides compensation to employees injured on the job.
  • Property: Covers your physical space, whether it is a cart, storefront, or office.
  • Commercial auto: Protection for your company-owned vehicle.
  • Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
  • Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

types of business insurance

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Floify , meridianlink , or ARIVE , to manage your loan origination, rate quotes, and lender relationships. 

  • Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
  • If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Embarking on a journey in the mortgage brokerage business is an exciting venture, and a solid marketing strategy is key to success. Beyond the essentials like creating a website and networking, here are practical tips to boost your mortgage brokerage:

  • Leverage Social Proof: Encourage satisfied clients to share testimonials and positive experiences on online platforms and social media. Real stories build trust and credibility.
  • Partnerships with Real Estate Agents: Forge strong partnerships with local real estate agents. A mutually beneficial relationship can lead to referrals and a steady stream of potential clients.
  • Educational Workshops: Host workshops or webinars to educate potential homebuyers on the mortgage process. Establish yourself as an expert and build relationships with attendees.
  • Local Community Engagement: Sponsor local events, sports teams, or community projects. This not only fosters goodwill but also increases your visibility within the community.
  • Content Marketing: Produce valuable content, such as blog posts or videos, that addresses common mortgage-related questions and concerns. This positions your brokerage as an authoritative resource.
  • Referral Programs: Implement a referral program that rewards clients and partners who refer business to your brokerage. Incentives can include discounts, gift cards, or other perks.
  • Mobile Optimization: Ensure your online presence is mobile-friendly. Many potential clients search for mortgage information on their smartphones, and a seamless mobile experience is crucial.
  • Targeted Online Advertising: Utilize online advertising platforms to target specific demographics in your local area. Platforms like Facebook and Google Ads allow you to narrow down your audience effectively.
  • Niche Marketing: Identify and target specific niche markets, such as first-time homebuyers or retirees. Tailor your marketing messages to address their unique needs and concerns.
  • Stay Informed on Industry Trends: Demonstrate your industry expertise by staying informed about the latest mortgage trends and regulations. Share relevant updates with your audience to showcase your knowledge.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your mortgage brokerage meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your mortgage brokerage business could be:

  • The best mortgage loan rates in town, guaranteed
  • Investment property loans – quick turnaround time
  • Easy, affordable mortgage loan to smooth your home buying process  

unique selling proposition

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a mortgage brokerage business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in mortgage brokerages for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in mortgage brokerages. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a mortgage brokerage business include:

  • Loan originators – assist clients with the mortgage process
  • Branch Manager – scheduling, accounting
  • Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Mortgage Brokerage – Start Making Money!

What better way to make a living – helping people with the biggest investment of their lives, and making their dreams come true. Homeownership is a part of the American dream, and you could make that dream come true, time and time again, with your own mortgage brokerage. If you’re willing to work hard and have a passion for helping people, you could build a thriving mortgage operation that could even go national — now that’s a lot of dreams! 

Now that your business homework is out of the way, it’s time to get to work and launch your successful mortgage brokerage. 

  • Mortgage Brokerage Business FAQs

Mortgage brokers get paid a percentage of the total loan amount. The mortgage lender generally determines the commission rate, which is usually between 1% and 2%.

You can find a host of resources to help you with education and licensing through the Nationwide Mortgage License System at their NMLS resource center . You can also check with your state for requirements.

The most effective way to get leads for mortgage brokers is to ask for referrals.

A mortgage brokerage can be very profitable, although it can take time to gain traction and build a relationship with real estate agents.

To establish trust and credibility as a mortgage broker, be transparent and maintain open communication with clients. Obtain relevant licenses and certifications, build a strong network with industry professionals, showcase testimonials, and stay knowledgeable about mortgage products and regulations.

Challenges in the mortgage brokerage industry include intense competition, market fluctuations influenced by economic conditions, interest rates, and housing market trends, as well as changing regulations and compliance requirements.

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  • Decide if the Business Is Right for You
  • Hone Your Idea
  • Brainstorm a Mortgage Business Name
  • Create a Mortgage Brokerage Business Plan
  • Register Your Business
  • Register for Taxes
  • Fund your Business
  • Apply for Mortgage Brokerage Business Licenses and Permits
  • Open a Business Bank Account
  • Get Business Insurance
  • Prepare to Launch
  • Build Your Team
  • Run a Mortgage Brokerage - Start Making Money!

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IMAGES

  1. Mortgage Broker Business Plan Template [Free PDF]

    mortgage brokerage business plan pdf

  2. Mortgage Broker Business Plan Template [Free PDF]

    mortgage brokerage business plan pdf

  3. Real Estate Brokerage Business Plan Template

    mortgage brokerage business plan pdf

  4. Mortgage Broker Business Plan

    mortgage brokerage business plan pdf

  5. Mortgage Broker Business Plan Template [Free PDF]

    mortgage brokerage business plan pdf

  6. The #1 Mortgage Brokerage Business Plan Template & Guidebook

    mortgage brokerage business plan pdf

VIDEO

  1. Working with A Mortgage Broker

  2. Benefits of Working With a Mortgage Broker

  3. From employee to entrepreneur: The path of a mortgage broker

  4. Connect Loans is Now Hiring Loan Officers!

  5. The shocking decline in mortgage refinance

  6. How do I buy an investment property

COMMENTS

  1. Mortgage Broker Business Plan Template & Guide [Updated 2024]

    Company Analysis In your company analysis, you will detail the type of mortgage broker business you are operating. For example, you might operate one of the following types of mortgage broker businesses: Retail Mortgage Broker: this type of mortgage broker business focuses on being a broker for individuals or small businesses.

  2. Mortgage Broker Business Plan Template (2024)

    Below is a template to help you create each section of your Mortgage Broker business plan. Executive Summary Business Overview Davidson Mortgage, located in Tucson, Arizona, is a new mortgage brokerage specializing in residential mortgages.

  3. PDF Mortgage Banking and Brokerage Business Plan

    The purpose of this business plan is to raise $250,000 from an investor. The Mortgage Broker Company ("the Company") is a business devoted to providing mortgage and lending services to a diverse market of people. The Team The Management team of the Company is an extremely knowledgeable, qualified, and

  4. How to Create Your Own Mortgage Broker Business Plan

    There's no right or wrong way to write your mortgage broker business plan, but there are some key sections you'll want to include to make the most of it. A plan that's tailored to fit your industry acts as a roadmap that can help you structure your business and scale fast.

  5. PDF MORTGAGE BROKER BUSINESS PLAN

    MORTGAGE BROKER BUSINESS PLAN All applicants are required to provide a general business plan indicating how they plan to conduct business and a description of the policies and procedures that the mortgage broker and its mortgage agents will follow to arrange, make and service loans. Company ("Applicant") Legal Name: DBA if applicable:

  6. 11+ Mortgage Broker Business Plan Templates in DOC

    1. Mortgage Broker Business Plan Template Details File Format Docs MS Word Pages Size: A4 & US Download Now 2. Mortgage Brooking Business Plan Template in PDF

  7. Mortgage Broker Business Plan Template

    Download a free mortgage broker business plan template in PDF or Word doc format What you'll get with this template: A complete business plan Unlike other blank templates, our business plan examples are complete business plans with all of the text and financial forecasts already filled out.

  8. The #1 Mortgage Brokerage Business Plan Template & Guidebook

    1. Describe the Purpose of Your Mortgage Brokerage Business. The first step to writing your business plan is to describe the purpose of your mortgage brokerage business. This includes describing why you are starting this type of business, and what problems it will solve for customers.

  9. Mortgage Broker Business Plan Example

    2.2 Start-up Summary Our start-up costs are outlined in the following table. Start-up costs derive from website design, office equipment, main computer station complete with all mortgage information for broker usage, stationery, legal costs, furnishings, office advertising and services, and expenses associated with opening our office.

  10. Mortgage Broker Business Plan Template (2024)

    Download Template Learn more How to Write a mortgage broker Business Plan? Writing a mortgage broker business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary

  11. Mortgage Broker Business Plan Template [Updated 2024]

    The following Mortgage Broker business plan template gives you the key elements to include in a winning loan officer business plan. You can download our business plan template (including a full, customizable financial model) to your computer here. Below are links to each of the key sections of a sample mortgage broker business plan.

  12. Mortgage Broker Business Plan

    PDF Size: 23 KB Download 3. Sample Mortgage Broker Business Plan mortgage.nationwidelicensingsystem.org Details File Format PDF Size: 45 KB Download 4.

  13. 11+ Mortgage Business Plan Templates in DOC

    1. Mortgage Broker Business Plan Template Details File Format Google Docs MS Word Apple Pages

  14. PDF MORTGAGE COMPANY BUSINESS PLAN

    MORTGAGE COMPANY BUSINESS PLAN All applicants are required to provide a general business plan indicating how they plan to conduct business and a description of the policies and procedures that the mortgage company and its mortgage loan originators will follow to arrange, make and service loans. Company ("Applicant") Legal Name: DBA if applicable:

  15. How to Start a Mortgage Brokerage Business

    Plan your Mortgage Brokerage Business. Form your Mortgage Brokerage Business into a Legal Entity. Register your Mortgage Brokerage Business for Taxes. Open a Business Bank Account & Credit Card. Set up Accounting for your Mortgage Brokerage Business. Get the Necessary Permits & Licenses for your Mortgage Brokerage Business.

  16. A step-by-step guide to starting a mortgage brokerage

    1. Gain knowledge and expertise The first step you in starting your own mortgage brokerage is to gain knowledge and expertise. You may already have this, which is likely the reason you want to...

  17. Sample Mortgage Brokerage Firm Business Plan

    Monthly Revenue Break-Even $21, 340. Cash Flow In Flow Out Flow. $760, 530 $471, 330. This financial plan indicates the progress of the QMT Finance company. We are not done yet; we are still pursuing the mark of greater achievement. GUIDE: RE/MAX Franchise Opportunity. This is a Mortgage Brokerage business plan sample.

  18. Mortage Broker Business Plan Sample [UPD 2024]

    2.1 The Business Gary Brokerage will be a licensed and registered mortgages company, owned by Gary Cleese. The company will be located in New York, and will initially operate in only one city. The business is aimed to provide housing and real estate facilities to a large audience by selling mortgages for them on easy installments.

  19. Mortgage Broker Business Plan Template

    Download this Mortgage Broker Business Plan Template Design in Word, Google Docs, PDF, Apple Pages Format. Easily Editable, Printable, Downloadable. A professional business plan specifically tailored for a mortgage brokerage firm. It encompasses market analysis, lead generation strategies, and financial projections.

  20. Mortgage Brokerage Business Plan [Sample Template]

    1. Industry Overview Mortgage Brokerage firms are established with the sole aim of providing a convenient platform in form of long term loan to those who want to buy their own property.

  21. Creating a mortgage broker business plan

    What to include in your business plan: 1. Your mission statement. This is your why. Here is where you articulate why your broker business exists and what you aim to achieve. You should spend the time to think about your values and principles that guide your business and write these into your business plan. 2.

  22. How to Start a Mortgage Brokerage Business in 2024

    Step 4: Create a Mortgage Brokerage Business Plan. Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

  23. PDF Mortgage Broker Business Plan Business Plan Example

    Upmetrics' step-by-step instructions, prompts, and the library of 400+ sample business plans will guide you through each section of your plan as a business mentor. 1. Executive Summary. An executive summary is the first section of the business plan intended to provide an overview of the whole business plan.