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How to Start Your Own Mortgage Company

by Kristie Lorette

1. Choose a name for your mortgage company. You may wish to include the word "mortgage" in the company name to identify the type of business for prospects and clients.

2. Establish the business structure. The structures are sole proprietorship, partnership, corporation and limited liability company (LLC). To separate and protect your personal assets from those of the business, you may want to speak with a business attorney before choosing the structure for the company.

3. Register the business with the state. Contact the secretary of state in the state where you hold your mortgage business license and where you intend to open the mortgage company. A representative from the secretary of state’s office can provide you with the paperwork you'll need to complete and tell you what documentation you'll need to supply to complete the registration process.

4. Write a business plan. A business plan specifies the location where

you intend to run the company, the employees you will hire, the types of clients you intend to market your mortgage company to, the goals you have for the business and the ways in which you intend to reach your target market with your marketing efforts.

5. Obtain a federal tax identification number. You can obtain a federal tax identification number for the business from the Internal Revenue Service by phone or online at the IRS website.

6. Establish relationships with vendors. In order to process mortgages, you will need to have relationships with appraisal companies, title companies, closing agents and survey companies.

  • Mortgage broker license for the state where company will operate
  • The state in which you obtained your mortgage broker license is the only state where you can establish mortgages for clients. If you wish to offer mortgages in other states, you must obtain a mortgage broker license from each of those states.

Category: Mortgage broker

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