The Evolution of a Mortgage Broker – Pt 1 Rookie

This is part 1 of a 3 part series where I try to highlight the issues facing different stages of a mortgage broker business, starting with the rookie broker, in subsequent blogs I will tackle the career broker and finally the business owner.  I can talk with a fair amount of certainty about this topic, after all I have met hundreds of brokers over the years and discussed their pain points in details.  I have also been a broker before and am building my personal broking business under RateOne on top of growing the overall RateOne business from a recruitment, marketing, coaching and training point of view.  A lot of the pain points I talk of, I have experienced myself.

Rookie phase

You’ve “heard” through the press what those mortgage brokers are earning, you have a mis-guided impression that its “easy money!”.  “I’ll give that a crack”.  You soon learn that its harder than you thought.  Generating leads is tough when you don’t have any experience to call upon, convincing business partners that you can offer a credible solution for their clients is a hard slog, so you decide that whilst you are new to this you will give away a percentage of your commission, after all “money talks”.

When you first start out, there is a lot to think about.  Its all very good getting a client/lead, but what do you do with it once you have it?  What is your sales process?  What is your follow up process?  What software are you going to use?  And don’t forget the brand!  What’s the “clever” name you are going to give your new baby, one that no-one else has taken yet.

Leads are coming in dribs and drabs, mainly from family and friends that you have convinced you can save them money on their existing loan.  You service the hell out of these clients, they are receiving the ‘Premier Gold Super Mortgage Broker Service’, with updates all the way through the process whilst you spend a lot of time following up the lender, the solicitor and selling agent to make sure that now you have the fish on your hook, it does not escape.

You have only just started out, so you know that you cannot afford an office, it’s best to work from home.  You soon find that this is problematic, you are regularly having to step outside to make calls to escape the noise of the children playing or the dog is barking at the cat through the window! (I am calling on some personal experiences here!)  Sometimes you just wish for an open field away from EVERYBODY and EVERYTHING!

When you did all your research, you realised that you needed a mentor for 2 years, but you don’t want to pay too much for it.  So you decide to go for a guy that your mate recommended who is a successful broker.  He charges you a monthly fee for his expertise  but because he is so busy, you struggle to be able to get hold of him to ask any questions, “WHAT AM I PAYING FOR!?” you scream.

Cash flow is sporadic, you haven’t seen any income now for a few months because you are spending all of your time in areas of the business that add nothing to your bottom line immediately.  This is a real issue with starting out, I see a lot of lenders working for the banks that want to make the jump, but are not confident enough to back themselves at this stage.  If you write a loan today, the reality is it could be 3 months before you see any income.  But you told your “significant other” not to worry I’ll be making money in no time, the family savings are as safe as houses!  Reality hits you hard.

At RateOne we give you the resources to succeed, we help you to iron out the bumpy road to have consistency, to accelerate your learning and to get you up and running as quickly as possible.  There is one caveat, RateOne is not responsible for your success, YOU ARE.  As much as we provide the resources, it still takes your dedication, discipline and determination to make it.