Starting as a loan officer and establishing your market would be very challenging. Since there is huge competition, you’ll have difficulty in getting long-term clients. As a result, you’ll always be having one troubling question at some point in your life: how to get mortgage leads? Before going into details, let’s delve into some background information on mortgage leads.
What’s a Mortgage Lead?
A mortgage lead refers to a person who’s interested in getting a mortgage. Basically, it refers to a person who needs to avail services of a mortgage officer. However, not every lead may turn out to be a potential customer for you. You’ll have to determine whether they are qualified and then approach them.
Why Are Leads Important?
Leads are the potential people who’ll help a loan officer grow his business and income. A loan officer will try to close these leads and get them a mortgage. These leads will turn to borrowers who will get a loan.
From this entire process, the loan officer will receive a commission. Therefore, leads are essential for a loan officer who try to close them.
How Can You Get Leads?
You can get leads in numerous ways. The general way to get leads falls into two major categories: Buying or Generating.
Buying is when you rely on a third-party company that will give you a list of potential leads, and you’ll try to close them as prospects. Generally, you’ll have to purchase them. Generating is a different way where you pursue to get leads solely on your own. It can be through referrals, word of mouth, online marketing, organic generation, etc.
This is just a basic overview of buying and generating. We’ll give you in-depth detail about these two methods in the next section.
What Is the Complete Process of Buying Leads?
Purchasing leads is growing to be a popular option because potential leads check the browser first to look for home financing. Whenever they submit their contact information on a website like mortgage leads, they become potential leads because they are interested in the loan. These websites then sell these leads to loan officers.
Below is a snapshot from a mortgage leads website.
What Happens When a Loan Officer Purchases the Leads?
The website will send out the leads to loan officers in the form of email or a spreadsheet. After that, loan officers can start a marketing campaign to attract all these leads. Calling up and checking up on them will help to pitch the offer to these prospects. If they like the offer, there is a high chance of closing them.
However, you should know that you won’t have the exclusive option to these leads. The website would sell out these leads to any loan officers. Nevertheless, you should focus on marketing and campaigning your offer as effectively as possible. Therefore, learn the best ways to pursue the clients instead of backing out.
Which Companies Sell Out Mortgage Leads?
Many companies sell out leads. To name a few, the following are some companies:
· Mortgage leads
· Lending Tree
· Bank Rate
· Lead Planet
· The Lender’s Network
Factors to Consider Before Buying Leads
· There are three prime factors to consider before purchasing leads. They are as follows:
· Company: Whatever company you choose, you should research them first. Search their customer reviews, lead quality, type of leads, and are the leads fresh? You should consider all of these questions before purchasing leads. Some officers purchase leads from multiple companies to try their luck on plenty of leads.
· Type of Lead: There are two primary types of lead: exclusive and non-exclusive. Exclusive leads are those you’re purchasing from the company, whereas non-exclusive leads everyone can access. Non-exclusive leads don’t mean you won’t get customers. They are risky, but you can get them with proper planning.
· Cost: You should identify the cost you want to pay. Most companies need a minimum deposit of $500. Also, the price varies from the lead’s type. Non-exclusive leads will typically cost you less, while fresh and exclusive leads will be more expensive.
What Is the Cost of Lead?
Most commonly, it cost around $20-$100 to purchase a single lead. Also, the lead is only a prospect, and you’ll have to put in the effort of closing them and converting them to borrowers.
Follow up Plan
Whenever you decide to purchase the leads, don’t rush it. You should have a game plan in place for managing those leads. You should consider questions like calling them, medium of contact and creating a timeline to contact them. These are crucial factors, and you should contact the leads as soon as possible to convert them.
You must create a database system to create a timeline for calling those leads. You can automatically distribute your leads and decide on your marketing campaign.
How to Generate Leads?
If you want to get leads on your own, there are several different options. Here we’ll discuss three main options to help you generate leads.
Referral partners are mostly real estate agents who are professional and can refer businesses to you. There are several questions like why they would send leads to us and why should they trust us? Well, following, we’ll discuss the answers to these questions.
· Firstly, these agents want their clients to purchase their homes. They’ll only earn once they close a deal with their client. Therefore, if you have a record of closing deals, referral partners will start to acknowledge you. Moreover, if you set up your specialization and develop a skillset for a particular type of loan, you’ll get a referral for specific borrowers.
· Getting the trust of a referral partner will take time, and it’s a difficult process. You should develop a close relationship with them because they probably need a mortgage when clients want a home. Therefore, if you have a close relationship with a real estate agent, they will recommend you.
Market to Your Customers
Now, many loan officers are generating leads without relying on websites or referrals. They are starting to see the benefits of online marketing and using it to their own benefit. Online marketing is a great way to generate leads because it can help to target a specific audience. There are many ways to market online, including google ads, Facebook ads, google results, etc.
Online marketing is becoming useful because you can target specific lead types through it. For example, if you want to market to first-time homebuyers aging 29-30, you can set the demographics in Google Ads, and your marketing will become specific. As a result, you’ll gain leads from your target market. It can also help to calculate ROI on your campaigns accurately.
Following are some ways that loan officers are using:
· Loan officers are now running their own personal paid Google Ads. The google ads take the leads to the landing page where they submit their information. In this way, loan agents are generating their own leads. Officers can set up campaigns to close these potential leads.
· Blogging and uploading high-quality content is another way to generate organic leads on your website. Besides, you can also upload content on your social media contract to get leads. Moreover, if you upload informational blogs, the chances are that leads would trust you and become customers.
Maintain Great Relationships
You might not know, but keeping good relationships with your past or current clients will help you to market through ‘word of mouth.’ Many officers choose to give attention to customer service to maintain a great relationship with their clients. Also, whenever someone inquires those clients about a mortgage, these clients will probably recommend it to you if you have a great relationship with them.
Another best way is to ask friends and family. It’s a great way to begin a career. Ask your family or friends because they can become a potential for getting more clients.
Should I Buy or Generate Leads?
It’s totally up to your discretion to decide the lead’s generation strategy. You can maybe use a mix of both strategies. While purchasing new leads, you can try organic methods to boost your lead generation process. It’s ideal to buy leads if a business is slow. However, if it’s moving forward, you’ll have plenty of referrals to keep your business intact.
How To Follow-up?
The most important thing is determining a way to contact your leads and convert them into valuable prospects. You could have a whole database of leads, but it’s useless if you don’t do anything with them. Therefore, it’s important to create a game plan beforehand, so you get on to the process quickly and make some real income.
Creating Follow-up Plans
You can use a mix of techniques to follow up your potential leads. You can call them at first to break the ice. Then you can contact them through emails or messages. You should determine a way to always be in touch with the customer. You can offer them value through follow-ups and give them valuable advice.
It’s totally up to your discretion to decide upon the type of method you’ll use to get leads. Everyone will have different options. However, you should choose what’s best for you. We’ll recommend you contacting your friends and family and purchasing leads if you’re just starting. With a little time, you can start doing online marketing.
Nevertheless, if you’re looking for a way to buy leads, contact us at MortgageLeads.com.