How to Choose the Mortgage Franchise That's Right For You

Becky Martin, writer

Published at 04/10/2020, Updated on 04/05/2022 , Reading time: 6 min

How to Choose the Mortgage Franchise That's Right For You — Photo © mortgage-franchise.jpg

Always considered entering the mortgage industry but found it difficult to pinpoint the right opportunity for you? In this article we show you your options and help you select the perfect type of mortgage franchise to suit you and your entrepreneurial goals.

Purchasing a house can be a long and tedious process, but thanks to those working in the mortgage industry it can be made much smoother. Mortgage-related jobs require great people skills and a good understanding of numbers. Depending on the type of mortgage franchise you operate, you might work directly with your customers, or have a more behind–the-scenes role. Either way, it can be both a rewarding and lucrative business venture.

There are more than 10.94 million mortgages in the UK and there were over 16,800 new remortgages completed in last December alone (finder.co.uk). Also, with many people having to find new cash flow sources due to the current economic crisis, the requests for mortgages are likely to be on the rise. For this reason, it could be a good time to join the mortgage industry, if it’s been on the cards for some time. Below we provide a rundown of some of the different types of mortgage franchise and how you can pick the best one for you.

How to choose the mortgage franchise that’s right for you

Here’s a quick breakdown of the different types of businesses in the mortgage industry. You could choose to start or invest in a franchise that offers just one of these services, but you’ll often find that mortgage businesses offer a few of them to make the process even more streamlined for customers.

1. Mortgage broker

Mortgage brokers work with different lenders and banks to match their clients with the best loan to meet their needs. They are basically the middleman between the applicant and the lender. Mortgage broker businesses do not lend money directly; instead, their service includes helping individuals assess their financial situation, suggesting the most suitable mortgage and searching the market to find the best deals.

Choosing the right mortgage broker franchise

For starters, you can read customer reviews and see how they rate their experiences with the business. Not only is this a solid indicator of the quality of their service, but it also reveals what existing customers think of the brand name and what potential customers can find out when they search online. Buying a house is a huge life decision. Customers won’t be scared to voice their opinions online and in their local area if they have had a bad experience. So, make sure that the mortgage franchise is reputable and respected.

The individuals involved in the mortgage broker franchise should be likeable and ‘people people’. This is because of their need to strike up conversations with strangers quickly and easily – and enjoy it at the same time.

2. Mortgage lender

Mortgage lenders lend the money so people can buy a house. They come in a number of forms, including independent lenders, brokers, credit unions or banks. They have specific guidelines to verify their applicant’s creditworthiness and ability to repay what they owe. Mortgage lenders set the interest rate and repayment schedule.

Choosing the right mortgage lending franchise

When looking for the right mortgage lending business or a franchise that offers these services, you need to make sure that is has the tools in place to effectively communicate with other necessary professionals and their customers. They should also adapt to keep in touch with their customers in the way they prefer, whether it be by email, text or phone call.

3. Mortgage loan officer

When someone wants to obtain a mortgage they go to a loan officer. They take down their personal information and send it off for the underwriting process. Many loan officers guide individuals through their application process. Lots of businesses need loan officers to meet quota for approved loans.

If you operate a loan officer franchise you need to be comfortable networking with other real estate professionals.

Choosing the right mortgage loan officer franchise

A good mortgage loan officer franchise will be able to demonstrate how it networks with other businesses in the mortgage industry. This doesn’t always have to be by attending huge industry events – though this is still important. It can actually be as easy as just getting to know other loan officers, home inspectors, real estate agents and local professionals.

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4. Mortgage processor

Mortgage processors gather all of the necessary documentation to submit the loan application; therefore they work closely with loan officers and mortgage underwriters. They make sure that all of the documents are completed to the mortgage franchise’s standards and then check all the information is complete before sending it to the mortgage underwriter.

Choosing the right mortgage processing franchise

Mortgage processors work in a fast paced environment and have to work to tight deadlines. Therefore, when looking for a mortgage processing business or a mortgage franchise that offers mortgage processing services, you need to make sure it demonstrates its organisation across the franchise network and with its staff.

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5. Mortgage underwriter

After the loan officer has submitted the mortgage application and it has been received by the mortgage processor, it is reviewed by the mortgage underwriter. This type of job role or business makes the financial approval or denial decision. A typical day will involve verifying an applicant’s income by completing the needed forms to a high standard.

Choosing the right mortgage underwriting franchise

A great mortgage underwriting business will consist of a team with excellent communication and analytical skills. This is because they have to collect all the information they need from different members of the mortgage lending team in an organised and timely manner. And, they have to communicate the reason why an application was rejected clearly, so the loan officer can inform the applicant.

When choosing a mortgage underwriting franchise, you therefore need to make sure it values these skills and has a strong commitment to ethics.

6. Online mortgage franchise

While mortgage franchises can be operated from offices, it isn’t always necessary. You can save substantial start up costs by avoiding having an office space altogether. For an online mortgage business, all you need is a computer and a phone to get started.

Choosing the right online mortgage franchise

At the moment, lots of clients are choosing to have telephone consultations or video calls instead of face-to-face meetings. This is great news for online mortgage franchises as this can easily be completed from the comfort of your sofa or dining table. When choosing an online mortgage franchise, make sure you look out for the technology and software that they use to offer a high quality service to customers.

Browse the mortgage franchises on Point Franchise

Now we have clarified the different types of mortgage franchise that you can start, you can start to have a serious think about whether it’s a smart investment choice for you and which one you are best suited to. You can start browsing our mortgage franchises and mortgage broker franchises at the click of a button. If you’d also like to see even more potential franchise opportunities, why not take a look at what we have in the estate agent and property sector and the finance sector?

Becky Martin, writer

Mortgage