The New York Times heralded in a front-page story (October 8, 2005) that “a vast industry of real estate middlemen has sprouted up recently, riding the ups and downs of the mortgage market, and in many cases, accumulating great wealth in the process. Mortgage brokers, virtually nonexistent 25 years ago, now number 400,000 workers at more than 50,000 firms.”

This is a career that has unlimited potential. It’s based on the very basic human desire to own the place you call home. And mortgage brokers make it happen, so much so that this year they will collect $33 billion from their share of the estimated $2.8 trillion in home mortgages.

How Americans finance home purchases has changed dramatically in the last century. Once content to finance a home purchase with a 30-year fixed rate mortgage, buyers now find the range of loan options dizzying. The serial refinancer, who trades in his mortgage for a newer rate or better terms with the ease of trading in his car for the latest model has become a fixture of the home mortgage market. The Internet, which provides 24/7 information, has transformed the mortgage industry. The secondary mortgage market, which is the underpinning of home mortgages, has been reinvented with the rise of the global economy that finds American real estate a valuable investment.

These revolutionary changes signal an invitation to the smart, energetic, independent, detail-oriented entrepreneurs out there who are looking for a fast-paced career where the rewards, financial and personal, are enormous. Welcome to the world of the mortgage broker.

To meet the demand for information on this dynamic new career, the publisher sought out a successful mortgage broker who could share his own experiences with readers. Dan Kahn, as evident from his bio inside the back cover of this book, has been a top producer in the industry and is the owner of Financial Access Corporation, a mortgage broker company in Newburgh, New York. In this book, he gives you practical, step-by-step guidelines on what works and what doesn’t in this career. Whether you are an entry-level mortgage broker, or an experienced old hand, there’s much for you to learn from Dan’s strategies and insights.

The Complete Idiot’s Guide to Success as a Mortgage Broker is written in six parts. Each one addresses a different aspect of the business.

Part 1, “The Real Deal on Mortgage Brokers,” gives you the inside scoop on whether this is the career for you. It explores why this is a business that has taken off in terms of number of brokers and profitability in the last 25 years. By spending a day in the lives of four of these professionals, you get an intimate look into their motivations, as well as the rewards and drawbacks of this career. You’ll also have an opportunity to take a career assessment test designed to find out if you have the right personality and entrepreneurial spirit for this work.

Part 2, “A Seat at the Table,” prepares you for the licensing requirements of this career. It then takes you to the next step and tells you how to find the right job with a firm that will encourage your growth and respect your contributions. In this book, you’ll find the specifics of what’s negotiable and what’s not in this business.

Part 3, “Building Blocks of Success,” outlines for you a plan to become a market and financing expert. You need to develop a breadth of knowledge of the economy and housing trends in order to advise your clients and manage your business in good times and bad. In a business that is at least 90 percent based on referrals, you’ll learn the secrets of effective networking so you can develop the contacts that will spread the word about you, the mortgage broker professional. You’ll find out what technology is essential in your office and your career. This is becoming a paperless industry, and you’ve got to be ready. You’ll also discover how to manage your time so that you can multitask without losing control.

Part 4, “Here’s the Deal,” delivers the nitty-gritty of the business. You’ll learn how and why you should get clients preapproved for loans. You’ll learn the essential role Fannie Mae and Freddie Mac play in determining the standards for the majority of loans written in this country. You’ll walk through a mortgage application, with a full explanation of each step. You’ll find out the differences in the types of mortgages available on the market today and how to determine which one fits your client’s needs.

Part 5, “Niche Markets Pay Off,” provides you with an insider’s look at these smaller markets. You’ll learn about the mortgage programs designed to help low-income and minority clients realize the American dream of home ownership. You’ll find out how to help senior citizens remain in their homes with a steady income stream realized from capitalizing on the equity of their homes. You’ll also discover the lucrative opportunities of arranging financing for other forms of housing like co-ops, condotels, and multi-family housing. The refinancing market is booming and this section will help you jump right in.

Part 6, “Striking Out on Your Own,” is a primer on how to open your own mortgage broker company. It guides you through each step of the process, from business plan to financing, from hiring the right help to retaining the rainmakers that propel your success. It teaches you how to market your brand-new business and then reminds you to keep a balance in your life in order to enjoy your success.

To make this book well organized and easy to read, there are three different types of sidebars that provide additional information.

Special thanks to my agent, Bob Diforio, for giving me the opportunity to write this book; to Mike Sanders, my acquisition editor, who entrusted me with this task and whose insight and encouragement were so helpful; to Nancy Lewis, my development editor, for her exceptional patience and superb editing; to Megan Douglass and Ross Patty for their attention to detail; to Rhonda Dossett for her research skills; and to my father, who is my model of an extraordinary businessman and parent.

All terms mentioned in this book that are known to be or are suspected of being trademarks or service marks have been appropriately capitalized. Alpha Books and Penguin Group (USA) Inc. cannot attest to the accuracy of this information. Use of a term in this book should not be regarded as affecting the validity of any trademark or service mark.