Is Opening Your Own Mortgage Company Really Worth It? The Real Truth Most Loan Officers Never Hear

If you’ve been in the mortgage industry long enough, you’ve probably heard it all:

“Become a broker for more freedom!”

“Start your own mortgage company and keep all the money!”

“Leave retail—brokers never look back!”

Sounds good, right?

But here’s the truth almost no one says out loud:

Opening a mortgage company is simple… but it is not easy.

And if you're jumping into ownership because you think it’s fast, passive money?

You’re going to be disappointed—fast.

As someone who has opened multiple brokerages and spent 20 years in this industry, I’m here to give you the raw, unfiltered truth about whether owning a mortgage company is really worth it, what it actually takes, and—most importantly—whether you’re truly ready for the leadership role it demands.

Let’s dive in.

Why Do You REALLY Want to Open a Mortgage Brokerage?

Before you file a single application with your state, you need clarity.

Real clarity.

Most loan officers say they want to open a brokerage because:

“I want to make more money.”

“I’m tired of splits.”

“I want flexibility.”

“I want control.”

But here’s the real talk:

If your #1 reason is “to make more money,” you’re missing the point.

You do not need to own a company to increase your income.

There are plenty of brokerages and platforms where you can earn more without putting your name—and liability—on every single file.

Ownership isn’t about income.

Ownership is about control.

Control over:

• Your brand

• Your client experience

• Your money

• Your decisions

• Your long-term wealth

• Your future

So ask yourself:

Do you want to be the CEO of your business—or do you just want a bigger check?

These require two very different levels of commitment.

Let’s Talk About Money—The Truth About Broker Earnings

Everyone online talks about the “big broker money.”

But here’s the reality most new owners don't expect:

In your first year, you will likely make LESS.

Why?

Because suddenly you’re responsible for:

• Licensing fees

• LOS systems

• Bookkeeping & accounting

• Payroll

• Compliance

• Marketing

• Staff (if you hire early)

When you’re building a business, your income doesn’t go straight to you—it goes into the foundation.

BUT…

The long game is where ownership wins.

Once your systems are running and your pipeline becomes consistent, owners often see:

• 2× income

• 3× income

• Even up to 5× income

• Plus: equity in a sellable business

That’s something a W-2 or 1099 role can never give you.

So is it worth it financially?

Yes—100%. Just not in year one.

The Reality Check: What Mortgage Ownership Actually Looks Like

You’ve seen the Instagram version:

Laptops on the beach, fancy cars, “work from anywhere” vibes.

But let me tell you the part they skip:

When you own a company:

• Your name is on every file.

• Every LO decision becomes your liability.

• You will work weekends.

• You will answer calls on vacation.

• You will sign documents at your kid’s game.

• You will lose sleep over compliance, margins, payroll, and hiring.

That’s the deal.

But the tradeoff?

You’re building something that belongs to you.

Not your branch.

Not your corporate office.

Not your bank.

YOU.

The real freedom comes from building something that lasts.

Not from working less—but from building smarter.

Why Systems Will Save You (and Why Most New Owners Burn Out)

Let me say something that stings:

Most brokers fail because they try to do everything alone.

They think ownership means:

• Running operations

• Managing payroll

• Handling compliance

• Closing loans

• Recruiting

• Onboarding

• Doing marketing

• Supervising LOs

• And still trying to hit personal production goals

That’s not a business.

That’s a breakdown waiting to happen.

The owners who scale—profitably and sustainably—think differently.

Successful owners:

• Outsource

• Automate

• Create systems

• Hire specialists

• Delegate

• Build teams

• Invest in experts

Stop trying to be a one-person show

And yes—it’s scary to admit you need help.

I had to hire a coach myself.

There were magical moments when everything clicked…

and many moments that absolutely sucked.

And those painful lessons are what led to the creation of Co/LAB Franchise and Broker Concierge—to help loan officers skip years of overwhelm and start with the systems most brokers spend forever trying to build.

So… Is Opening a Mortgage Company Worth It?

Here’s the honest answer:

✔️ Yes—if you’re ready to lead.

✔️ Yes—if you’re ready to put in the work.

✔️ Yes—if you want control, legacy, and long-term wealth.

✔️ Yes—if you’re willing to learn business, not just loans.

But…

✘ No—if you just want bigger splits.

✘ No—if you’re not ready to be uncomfortable.

✘ No—if you hate operations or people management.

Not everyone should open a brokerage.

But every LO deserves the truth before deciding.

The Fastest Way to Know If You’re Ready

If this article opened your eyes, it might be time to take the next step.

You don’t have to guess.

You don’t have to struggle.

You don’t have to do this alone.

My team and I help loan officers:

• Understand the requirements

• Map the path from LO → Broker → Owner

• Set up systems that take years to build

• Avoid expensive rookie mistakes

• Launch profitably and sustainably

• Step into the CEO role confidently

If you’re serious about exploring ownership—or even just want clarity—

Book a free strategy call with us.

We’ll walk you through the exact roadmap from loan officer to successful mortgage broker owner.

Frequently Asked Questions About Opening a Mortgage Company

1. How much does it cost to open a mortgage brokerage?

Most new brokerages spend $10,000–$25,000 in their first year.

Costs vary by state and include licensing, insurance, systems, payroll, compliance, and marketing.

2. Do I need to stop originating loans to become a broker owner?

Not right away. Most owners still originate for 12–24 months. But as you grow, you'll need to transition into CEO responsibilities to scale long-term.

3. How long does it take to get approved?

Typically 60–120 days, depending on your state. Filing everything correctly upfront speeds up the process significantly.

4. Will I really make more money as an owner?

Yes—but usually not in the first year.

Long-term, owners can earn 2–5× more than LOs and build equity in their business.

5. What’s the hardest part of running a mortgage company?

Operations.

Compliance, payroll, hiring, systems, marketing—many LOs underestimate how much work happens behind the scenes.

6. Should I open a brokerage or join a high-paying brokerage instead?

If you want bigger splits, join a strong brokerage.

If you want control, equity, and legacy—open your own.

7. Can I outsource operations and compliance?

Absolutely. Many elite brokers outsource HR, compliance, onboarding, marketing, and more. It’s often the smartest move.

8. How do I know if I’m ready to own a mortgage company?

You’re ready if you:

• Want control over your brand and money

• Are willing to learn business

• Aren’t afraid of leading people

• Can handle discomfort

• Have a long-term vision

9. What support does Co/LAB provide to new brokers?

We help with:

• Licensing and setup

• Compliance systems

• Operational structure

• Hiring & onboarding

• Marketing and branding

• Leadership development

• Full plug-and-play business systems

Our goal is to make mortgage ownership simpler, faster, and more profitable for LOs becoming owners.

Final Thoughts

Starting a mortgage company is one of the most rewarding moves you can make—but only when you do it for the right reasons.

Ownership is not about a title, an office, or bragging rights.

Ownership is about control.

Ownership is about freedom.

Ownership is about legacy.

If you’re ready to build something that lasts—

something bigger than loans—

then yes, opening your own mortgage company is absolutely worth it.

And we’re here to guide you every step of the way.

Megan Marsh
CEO/ FOUNDER of Co/LAB Broker Concierge

In Case You Missed Our Previous Blogs & YouTube Videos..

Read Here: How to Start a Mortgage Brokerage While Working as a Loan Officer | Step-by-Step Guide

Dreaming of starting your own mortgage brokerage but worried about losing income as a loan officer? This blog shows you exactly how to build your brokerage while still closing loans — without the risk, overwhelm, or “big leap.”

Read Here: Realtor Partnerships for Loan Officers: How to Build Strong Referral Relationships

If you’re a loan officer looking for steadier referrals, better partnerships, and a pipeline that doesn’t depend on cold leads—this blog is a must-read.

You’ll learn how to attract agents without sounding like every other LO, how to communicate in a way Realtors love, how to stand out with real value, and how to nurture partnerships that can drive predictable monthly revenue.

These are the same strategies that helped Megan close 300+ loans a year—and they still work today.

Mortgage Broker Support

Need help starting your mortgage business? Our Mortgage Broker Concierge Team is here to assist you!

If you’re curious about how we can help you simplify your operations beyond what our videos offer and want to know how you can make launching or running your brokerage stress-free, the link below explains everything. No fluff, no “exclusive training” gimmicks—just a straightforward way to see how we work with brokers to take backend tasks off their plates. Check it out here: https://colablendingfranchise.com/book-a-discovery-call