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Mortgage Net Branch Kansas
How Much Does it Cost to Start a Mortgage Net Branch in Kansas
It's impossible to quote an exact figure, but it will all hinge on the agreement you reach with the larger mortgage company with whom you are affiliated. And, even here this can differ because of different state's requirements.
In order to become a mortgage banker or broker in Kansas (and you have to be one or the other in order to operate a mortgage net branch in Kansas), here's what is and isn't required. In some categories, the costs or fees are mentioned, so you'll be able to determine approximately how much you'll need to start your mortgage net branch.
- As of this writing, you don't need to have a physical office to operate as a mortgage banker in Kansas.
In other words, you can be located in another state but still handle loan originations (which are primarily what a KS mortgage net branch does) in Kansas. However, you do have to post a $100,000 surety bond and have a net worth of $50,000-this amount must have been obtained through an audit of your finances.
- Your minimum net worth, or your Kansas net branch's, can be anywhere from $0 to $50,000 as long as you are in the State of Kansas.
This gives you a lot of flexibility when it comes to having the capital to start a net branch.
- Your initial licensing fee in Kansas is $654 at the time this article was written.
Now, overall, you'll probably want to have cash reserves for at least 120 days to cover other expenses that your larger mortgage company does not cover. Usually, a startup net branch doesn't begin closing loans for 60 days and 90 days to get revenue, and 120 day to profitability for well managed operations. However, now that you have these figures, you can better determine about how much you'll need if you plan to start a mortgage net branch in Kansas.