Pros:
1. Low overhead costs – As you are not dealing with real estate directly, the startup costs tend to be very low. You don’t need a lot of money to get started and in some cases can even start from home.
2. Wide range of clients – You can work with anyone who is looking to buy a home, so your potential customer base is huge.
3. Professional support – There are many organizations available to give advice and offer professional help throughout the process so you don’t have to go it alone.
Cons:
1. Licensing and regulations – Mortgage brokers are subject to a wide range of rules and regulations from both state and federal agencies. You’ll need to get familiar with all the applicable laws, including any licensing requirements, before you can begin doing business.
2. Competition – The mortgage brokerage market is very competitive and you’ll need to make sure you stand out from the crowd in order to attract clients.
3. High risk – While there are many opportunities available, mortgage brokerage is also risky due to potential fluctuations in the real estate market. You should make sure you understand all the risks involved before getting started.
4. Liability – As a mortgage broker, you can be held liable for any mistakes made in the process, so it’s important to thoroughly understand all the legal aspects of the job and make sure you are properly covered.
5. Stressful work environment – The job requires long hours, constant communication with clients and lenders, and dealing with a lot of paperwork. This can make it very stressful to work as a mortgage broker.
6. Low wages – The starting salary for most mortgage brokers is relatively low compared to other professions, so you may have difficulty making ends meet in the early stages of your business.
7. Lack of job security – Due to the cyclical nature of the mortgage business, there is often little job security for mortgage brokers as demand can fluctuate from year to year.