How to start a Mortgage Brokerage Business?

how to start a mortgage brokerage  business plan template

Are you interested in starting your own Mortgage Brokerage Business?

If you're thinking of starting a mortgage brokerage business, there are a few things you need to know. First, you'll need to obtain a mortgage broker license from your state. Once you have your license, you'll need to find a good location for your business and set up shop. You'll also need to build a good reputation with potential clients by providing great customer service. While the specifics may vary from state to state, these are the basics of what you'll need to do to start a successful mortgage brokerage business.
Business Plan
If you're thinking of starting a mortgage brokerage business, the first thing you'll need to do is put together a business plan. This will outline your business goals, strategies, and how you plan on achieving them. Some key elements to include in your business plan are:
-An executive summary
-A description of your business
-Your target market
-Your marketing and sales strategy
-Your operational plan
-Your financial plan
A well-thought-out business plan is essential for any successful business, so take the time to put one together before you start your mortgage brokerage.
Target Market
When starting a mortgage brokerage business, it's important to identify your target market. This will help you determine what type of products and services to offer, how to market your business, and who to target with your sales and marketing efforts. There are a few different ways to define your target market. One way is to segment by geography. This could mean targeting a specific city, state, or region. Another way to segment your target market is by demographics such as age, income, or home ownership status. You could also segment your market by type of loan product, such as first-time home buyer programs or jumbo loans. Once you've defined your target market, you can begin to develop a marketing plan and sales strategy that will help you reach them. This could include online advertising, direct mail, or events and workshops. Keep in mind that your target market may change over time, so it's important to regularly review and update your marketing plan.
Business Model
There are a few different business models that mortgage brokerages can operate under. The most common model is to take a percentage of the loan amount as a commission for arranging the loan. Some brokerages may also charge a flat fee for their services. Another common business model is to work on a referral basis. In this model, the broker is paid a referral fee by the lender for each loan that is successfully originated. The broker may also be paid a smaller commission by the borrower. Which business model is right for you will depend on a number of factors, including your experience in the industry, your marketing strategy, and the type of clients you plan to work with..
Competitive Landscape
The mortgage industry is highly competitive. There are many large banks and financial institutions that offer mortgage products and services. In order to be successful, mortgage brokerages need to offer a unique value proposition that sets them apart from the competition. Some ways that mortgage brokerages can differentiate themselves include offering personalized service, having a deep understanding of the local market, and providing innovative mortgage products. Mortgage brokerages need to constantly be innovating and finding new ways to stand out in order to stay ahead of the competition.
Costs & Pricing Strategy
The first step to starting a mortgage brokerage is understanding the costs associated with the business. This includes the costs of marketing, office space, licenses and bonds, and employee salaries. You will also need to develop a pricing strategy for your services. This will involve understanding the fees charged by other mortgage brokers in your area and developing a competitive fee structure.
Forming a Legal Entity
If you want to start a Mortgage Brokerage business, you will need to form a legal entity. This will protect you from personal liability and help you raise money for your business. You can choose to form a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each type of entity has its own pros and cons, so you will need to choose the one that is right for your business. If you are the only owner of your business, a sole proprietorship may be the best option. This type of business is easy to set up and you will not have to deal with much paperwork. However, sole proprietorships offer no personal liability protection, which means that you could be held responsible for debts incurred by your business. Partnerships are similar to sole proprietorships in that they are easy to set up and offer no personal liability protection. If you decide to form a partnership, you will need to choose a business partner who you can trust and who has complementary skills. It is important to have a written partnership agreement that outlines each partner's roles and responsibilities. A limited liability company (LLC) offers personal liability protection and is a good option for a small group of founders.
Opening a Business Bank Account
When you’re ready to start your Mortgage Brokerage business, one of the first steps is to open a business bank account. This will help you keep your personal and business finances separate and will make it easier to track your expenses and income. To open a business bank account, you’ll need to have the following information and documents:
-Your business name and address
-Your Social Security number or Employer Identification Number (EIN)
-A list of the owners, officers, and directors of the company
-Articles of incorporation or a business license
-A voided check or deposit slip from the account you’ll be using for your business
Once you have all of the required information and documents, you can visit your local bank or credit union to open a business checking account.
Setting up Business Accounting
If you're starting a Mortgage Brokerage business, one of the first things you need to do is set up your business accounting. This will ensure that you're keeping track of your finances and that you're complying with any financial regulations that apply to your business. Here's a quick guide to setting up your business accounting:
1. Choose an accounting software. There are many different accounting software packages available, so do some research to find one that will suit your needs.
2. Set up your chart of accounts. This is a list of all the categories of income and expenditure that you will track in your accounting system.
3. Set up your bank account. You will need a business bank account to manage your finances effectively.
4. Keep track of your income and expenditure. Make sure you keep accurate records of all money coming in and going out of your business.
5. Prepare and file your tax return. Once a year, you will need to file a tax return for your business. Make sure you keep on top of this so that you don't miss the deadline
Setting up Business Insurance
As a business owner, it is important to protect your company with the proper insurance. When setting up a Mortgage Brokerage business, you will need to consider the following types of insurance:
-Product liability insurance: This will protect you in the event that a product you designed and printed causes injury or damage.
-Professional liability insurance: This will protect you in the event that a client suffers damages as a result of your work.
-Business property insurance: This will protect your equipment and premises in the event of damage or theft.
-Business interruption insurance: This will protect you in the event that your business has to stop operations due to a covered event.
-Employee dishonesty insurance: This will protect you in the event that an employee steals from your business.
Speak with an insurance agent to determine which policies are right for your business
Setting up a Business Website
If you want to start a Mortgage Brokerage business, one of the first things you need to do is set up a website. This will be your online home base, where potential customers can learn more about your business and what you have to offer. There are a few key things you need to include on your website:
-An About page: This is where you can tell your story and give potential customers a sense of who you are and what you stand for.
-A portfolio: Showcase your best version on your website so that potential clients can see your work.
-A contact page: Make it easy for people to get in touch with you by including your email address and/or social media links.
-Pricing information: Let visitors know how much you charge for your services.
By having a well-designed website, you’ll be able to attract more customers and grow your Mortgage Brokerage business
Obtaining the Necessary Permits
If you want to start a mortgage brokerage business, you will need to obtain the necessary permits from the government. This process can vary depending on where you are located, but you will generally need to apply for a business license and a mortgage broker license. You can usually apply for a business license online or at your local courthouse. The requirements for a mortgage broker license are typically more stringent and may require you to take an exam. Once you have obtained the necessary permits, you will be able to start your mortgage brokerage business.
Setting up a Business Number or Appointment Setter
When you’re ready to start your Mortgage Brokerage business, one of the first things you need to do is set up a business phone number or an appointment setter. You can use a service like Google Voice to set up a business phone number for your Mortgage Brokerage business. Google Voice will give you a free business phone number that you can use to make and receive calls. Once you have a business phone number, you can start taking calls from potential customers. When you get a call, be sure to take down the customer’s name, contact information, and what they need. Once you have this information, you can give the customer a call back to discuss the project in more detail and give them a quote.

Hiring the Right Staff

Finding the right staff to work for your mortgage brokerage business is essential to success. You need to ensure your team is knowledgeable in all aspects of the mortgage industry, including loan underwriting, origination, and closing. Additionally, you need to make sure they are reliable, trustworthy and have excellent customer service skills. At the same time, it’s important to find employees who are familiar with SEO and can help you optimize your website for better rankings in search engine results. With the right team in place, you can be sure your mortgage brokerage business will be well on its way to success.

Setting Up Your Office Space

When establishing a mortgage brokerage business, it is important to find an office space that’s in a convenient and accessible location. Consider factors such as parking availability, public transportation options, and nearby amenities when selecting a space. You also need to consider how much space you need based on the number of staff you plan to hire. Make sure you consider all costs associated with the lease or purchase of an office space before signing a contract.

Funding Your Business

Securing the right financing for your mortgage brokerage business is critical for success. You may need to explore different loan options or consider alternative sources of funding such as venture capital or angel investing. Make sure you consider all costs associated with financing your business and determine what makes financial sense for your specific situation. It can also be beneficial to speak with other mortgage brokers who have experience with financing their businesses so that you can learn from their successes and mistakes.

Advertising and Marketing Strategies

Once your mortgage brokerage business is up and running, it’s important to create an effective advertising and marketing strategy that will help you reach potential clients. Digital marketing tactics such as SEO, social media marketing, email campaigns, content marketing, and paid advertising can be extremely helpful in getting your message out there. Consider partnering with other local businesses or industry groups that may be willing to refer potential clients your way. Additionally, make sure you stay up-to-date on industry trends so that you can create more effective campaigns over time.

Compliance and Regulation

As a mortgage broker, it’s essential that you comply with all applicable regulations and laws at both the state and federal levels. It’s important to have a thorough understanding of these regulations so that you don’t run into any legal issues down the road. Staying up-to-date on changes in laws and regulations is critical for protecting yourself from any potential liability issues. Additionally, make sure you understand how these regulations affect the services offered by your mortgage brokerage business so that you can stay compliant at all times.

Building a Network

Building strong professional relationships within the industry is essential for success as a mortgage broker. Developing relationships with real estate agents, lenders, title companies, appraisers, home inspectors, attorneys, and other related professionals will help ensure smooth transaction processes for clients while also helping build your reputation as a reliable professional within the industry. Join local networking groups or attend industry events in order to meet more individuals within the field who may be able to refer clients your way or offer valuable advice regarding best practices or compliance issues.

Professional Development

As a mortgage broker it’s important that you continuously work on improving your skills and knowledge in order to stay competitive within the industry. Attend workshops or conferences related to mortgage banking or real estate finance so that you can stay up-to-date on current trends and best practices. Additionally, consider joining professional organizations such as The National Association of Mortgage Brokers (NAMB) which may offer additional resources geared towards helping brokers develop their skillsets over time.

Leveraging Technology

In order for your mortgage brokerage business to remain competitive it’s essential that you leverage technology when possible in order to streamline processes for both yourself and clients alike. Automation tools such as document management systems can help save time by automating tasks such as document review while cloud-based software solutions can help improve communication between stakeholders during transactions by providing real-time updates throughout processes. Additionally, make use of mobile apps so that clients can access information about their loan applications wherever they are located at any given time.

Establishing Your Brand

Establishing a strong brand identity is crucial when it comes to setting yourself apart from competitors in the industry. Make use of visual elements such as logos or colors when creating marketing materials or designing websites in order to create an instantly recognizable identity associated with your business name or logo which customers will remember when they think of your services over time. Additionally, put extra effort into creating content which reflects both your company values as well as those of potential clients so that they feel comfortable engaging with your services over time due to shared interests or values between parties involved making it more likely for them to remain loyal customers in future transactions too..

Staying Compliant

In order for your business operations to stay compliant with all applicable regulations and laws it’s essential that internal policies are created which outline procedures related to specific tasks such as loan origination or underwriting processes among others and are then followed throughout job functions associated with each task outlined above at all times without fail too.. Additionally make sure staff members understand these policies through regular training sessions held whenever there are changes made within existing policies over time too..

Managing Risk

Risk management is key when it comes to running any type of financial service business including those related to mortgages specifically too.. Make sure processes such as credit checks are conducted thoroughly whenever necessary before approving loan applications submitted by potential borrowers so as not avoid problems down the line due wrongful decisions being made earlier on too.. Additionally always ensure loans are backed by appropriate collateral before approving applications so as not have any issues arise during repayment periods since having something tangible back up loan agreements made provides extra security just incase borrowers fail meet repayment obligations agreed upon initially too..

Business Growth Strategies

In order for any business including those related mortgages specifically grow successfully over time it’s essential strategies designed specifically address this aspect put place beforehand so goals desired achieved without fail too.. Consider tactics such expanding client base through referral programs offers incentives current customers refer others promote services even further alongside exploring new markets take advantage untapped opportunities present within those regions too.. Additionally utilize customer feedback received throughout course journey identify areas improvement focus efforts accordingly maximize chances achieving desired results desired even further too.
If you're thinking of starting a mortgage brokerage business, there are a few key things to keep in mind. First, you'll need to obtain the necessary licenses and registrations. Next, you'll need to find a good location and set up your office. Finally, you'll need to build up a clientele. By following these steps, you can be on your way to starting a successful mortgage brokerage business.

Why write a business plan?

A business plan is a critical tool for businesses and startups for a number of reasons:
  • Business Plans can help to articulate and flesh out the business’s goals and objectives. This can be beneficial not only for the business owner, but also for potential investors or partners
  • Business Plans can serve as a roadmap for the business, helping to keep it on track and on target. This is especially important for businesses that are growing and evolving, as it can be easy to get sidetracked without a clear plan in place.
  • Business plans can be a valuable tool for communicating the business’s vision to employees, customers, and other key stakeholders.
  • Business plans are one of the most affordable and straightforward ways of ensuring your business is successful.
  • Business plans allow you to understand your competition better to critically analyze your unique business proposition and differentiate yourself from the market.
  • Business Plans allow you to better understand your customer. Conducting a customer analysis is essential to create better products and services and market more effectively.
  • Business Plans allow you to determine the financial needs of the business leading to a better understanding of how much capital is needed to start the business and how much fundraising is needed.
  • Business Plans allow you to put your business model in words and analyze it further to improve revenues or fill the holes in your strategy.
  • Business plans allow you to attract investors and partners into the business as they can read an explanation about the business.
  • Business plans allow you to position your brand by understanding your company’s role in the marketplace.
  • Business Plans allow you to uncover new opportunities by undergoing the process of brainstorming while drafting your business plan which allows you to see your business in a new light. This allows you to come up with new ideas for products/services, business and marketing strategies.
  • Business Plans allow you to access the growth and success of your business by comparing actual operational results versus the forecasts and assumptions in your business plan. This allows you to update your business plan to a business growth plan and ensure the long-term success and survival of your business.

Business Plan Content


Many people struggle with drafting a business plan and it is necessary to ensure all important sections are present in a business plan:
  1. Executive Summary
  2. Company Overview
  3. Industry Analysis
  4. Consumer Analysis
  5. Competitor Analysis & Advantages
  6. Marketing Strategies & Plan
  7. Plan of Action
  8. Management Team

The financial forecast template is an extensive Microsoft Excel sheet with Sheets on Required Start-up Capital, Salary & Wage Plans, 5-year Income Statement, 5-year Cash-Flow Statement, 5-Year Balance Sheet, 5-Year Financial Highlights and other accounting statements that would cost in excess of £1000 if obtained by an accountant.

The financial forecast has been excluded from the business plan template. If you’d like to receive the financial forecast template for your start-up, please contact us at . Our consultants will be happy to discuss your business plan and provide you with the financial forecast template to accompany your business plan.

Instructions for the Business Plan Template

To complete your perfect Mortgage Brokerage business plan, fill out the form below and download our Mortgage Brokerage business plan template. The template is a word document that can be edited to include information about your Mortgage Brokerage business. The document contains instructions to complete the business plan and will go over all sections of the plan. Instructions are given in the document in red font and some tips are also included in blue font. The free template includes all sections excluding the financial forecast. If you need any additional help with drafting your business plan from our business plan template, please set up a complimentary 30-minute consultation with one of our consultants.

Ongoing Business Planning


With the growth of your business, your initial goals and plan is bound to change. To ensure the continued growth and success of your business, it is necessary to periodically update your business plan. Your business plan will convert to a business growth plan with versions that are updated every quarter/year. Avvale Consulting recommends that you update your business plan every few months and practice this as a process. Your business is also more likely to grow if you access your performance regularly against your business plans and reassess targets for business growth plans.


Want a Bespoke Business Plan for your Mortgage Brokerage Business?

Our Expertise


Avvale Consulting has extensive experience working with companies in many sectors including the Mortgage Brokerage industry. You can avail a free 30-minute business consultation to ask any questions you have about starting your Mortgage Brokerage business. We would also be happy to create a bespoke Mortgage Brokerage business plan for your Mortgage Brokerage business including a 5-year financial forecast to ensure the success of your Mortgage Brokerage business and raise capital from investors to start your Mortgage Brokerage business. This will include high-value consulting hours with our consultants and multiple value-added products such as investor lists and Angel Investor introductions.


About Us


Avvale Consulting is a leading startup business consulting firm based in London, United Kingdom. Our consultants have years of experience working with startups and have worked with over 300 startups from all around the world. Our team has thousands of business plans, pitch decks and other investment documents for startups leading to over $100 Million raised from various sources. Our business plan templates are the combination of years of startup fundraising and operational experience and can be easily completed by a business owner regardless of their business stage or expertise. So, whether you are a budding entrepreneur or a veteran businessman, download our business plan template and get started on your business growth journey today.