Had you gotten into this field twenty years ago, you may not have had the luxury of working from home—or even for yourself. But today, you have the option to do both, and make great money in the process. Owning a mortgage broker business means you’ve taken a leap of faith and trusted yourself to find work sufficient enough to provide for yourself and your family.
So when things start to slow down, it’s easy to panic. After all, this is your livelihood. But the problem with your plateau in growth could be something simple. Here are some reasons why your business might be slowing.
Lack of connections in your mortgage broker business
Connections mean everything in our industry. Whether you’re out and about, talking to people at the coffee shop in the morning or you’re emailing your way into speaking engagements, networking is key.
Gaining these connections doesn’t even have to be as complicated as face-to-face conversations and cold calls and emails. With social media channels being so important for a mortgage broker business today, you can broadcast your services without ever having to look in someone’s eye.
Failing to utilize available channels to meet and get to know realtors and insurance agents is unwise. It is something that could lead to some serious future work in the form of referrals.
The same can be said about your connections to potential customers. While these conversations may not lead to as many relationships, they can still be extremely valuable for future work.
Are you finding that many potential customers are having credit issues? Debt-to-income ratio restrictions hindering them from being approved?
Why not work with them? Refer them to some of those aforementioned industry connections. Set them up with a credit specialist or a financial advisor in your network. Show them you care and they will almost certainly return the favor once they’re in a better position and able to move forward with purchasing.
Too wide of a target market
Willing to accept any work? At the beginning, everyone is tempted to fall into this trap. And while it is easy at the beginning to accept any work, it is important to find a niche and stick with it. This will allow you to gain expertise in your area and set you apart from the competition.
Look at how realtors navigate their industry. They stick to one niche—for example, commercial real estate or beachfront properties—and become experts so they are trusted.
As your mortgage broker business grows, don’t take on any loan simply to take it on. Keep your eye on one target niche and excel in it.
Doing everything yourself
Most brokerages are small so it’s tempting to do everything on your own. You’ll burn yourself out and lose prospects in the process. Use automation tools to open up time and don’t take on more work than you can handle.
Failing to market your company
Whether you’re a one-person show running a home-based operation or a team with a brick-and-mortar location, your business must operate the same. You need to establish a presence.
Marketing is an essential part of your business’s plan for growth and success. In order to sustain your mortgage broker business, you need to be seen as a viable option for potential consumers.
Prove through your digital marketing efforts that you know your industry and have led many customers to successful closings and you’re bound to gain consistent work.
Get your mortgage broker business back on track
If you’ve gone through the work of setting up your own brokerage, you have it in you to analyze the potential issues listed above to see if they apply to you. Make the changes you need and continue on that uphill climb to MLO success.