The Biggest Mistakes New Loan Brokers Make (And How to Avoid Them)
- Danny Vesokie
- Mar 17
- 3 min read
If You Know These Pitfalls, You’ll Be 10 Steps Ahead of the Competition
Loan brokering is one of the fastest ways to build a high-income business—but most people never make it past the starting line.
It’s not because they aren’t smart. It’s not because there isn’t enough opportunity. It’s because they make the same costly mistakes over and over again.
They work hard, but on the wrong things.
They hesitate when it’s time to close.
They spin their wheels trying to figure everything out alone.
The good news? You don’t have to make these mistakes.
Here’s what trips up most new brokers—and how to sidestep every single roadblock.
MISTAKE #1: WAITING UNTIL YOU “KNOW EVERYTHING” BEFORE TAKING ACTION
Most new brokers think they need to master every loan type, memorize every lender’s guidelines, and perfect their pitch before talking to clients.
That’s a trap.
Loan brokering is a learn-by-doing business.
The best way to learn is by talking to real business owners.
The fastest way to get better is by submitting actual deals to lenders.
The brokers who succeed? They take action immediately. They work with mentors, get real-world experience, and improve fast.
What to Do Instead:
Start having conversations now—you don’t need to be an expert to connect borrowers with lenders.
Partner with an experienced mentor who can guide you through your first deals (instead of trying to figure it out alone).
MISTAKE #2: WASTING TIME ON THE WRONG CLIENTS
New brokers often chase every business owner who mentions funding. That’s a recipe for frustration.
Not all clients are worth your time.
Some borrowers:
❌ Aren’t ready (bad credit, unrealistic expectations, not serious about funding).
❌ Can’t qualify for financing (but will waste hours of your time anyway).
❌ Will price-shop you to death (then go with another broker or lender directly).
Successful brokers don’t chase everyone—they attract the right borrowers.
What to Do Instead:
✔ Learn how to pre-qualify clients quickly so you only work with people who can actually close.
✔ Focus on business owners who actively need funding now (not those who are “just looking”).
✔ Build a repeatable lead-generation system so you’re never begging for clients.
MISTAKE #3: NOT BUILDING RELATIONSHIPS WITH THE RIGHT LENDERS
Most new brokers try to submit deals to every lender they can find, hoping one sticks.
That’s a waste of time.
Lenders all have different preferences, risk appetites, and funding criteria. If you don’t know who funds what, you’ll be sending deals to the wrong places and getting rejected.
Successful brokers build strong relationships with lenders who actually approve their deals.
What to Do Instead:
✔ Get direct introductions to proven lenders so you don’t waste time on the wrong ones.
✔ Learn how to match deals with the right lender on the first try.
✔ Focus on building long-term lender relationships (because good lenders = faster closings = more commissions).
MISTAKE #4: FEARING THE SALES CONVERSATION
At some point, you have to get on the phone, talk to a business owner, and close the deal.
This is where most brokers freeze.
They:
❌ Overthink what to say and end up saying nothing.
❌ Come across as uncertain—which kills trust instantly.
❌ Sound too “salesy” or desperate—and scare the client away.
Closing deals is a skill. The more you practice, the easier it gets.
What to Do Instead:
✔ Use a proven script so you always know what to say.
✔ Learn how to control the conversation and position yourself as the expert.
✔ Role-play negotiations before talking to real clients—so you sound confident from Day 1.
MISTAKE #5: THINKING TOO SMALL
Some brokers aim to just close one or two deals a month.
That’s survival thinking.
The real money is in:
Building a steady pipeline of inbound deals.
Structuring deals that pay $10K, $20K, even $50K+ per closing.
Scaling beyond a solo operation and turning this into a six-figure+ brokerage.
What to Do Instead:
✔ Think long-term—loan brokering isn’t a side gig, it’s a real business.
✔ Automate lead generation so deals come to you.
✔ Learn how to build a referral network so you never run out of clients.
READY TO AVOID THESE MISTAKES & START CLOSING DEALS?
Loan brokering is simple—if you have the right blueprint.
Most people waste months (or even years) trying to figure this out alone. You don’t have to.
We’ll teach you how to land clients, get deals funded, and make serious money in this business—step by step.
Comments