Where do your mortgage leads come from?
Let’s look at the numbers. According to the Consumer Finance Profile of 2013 Mortgage Borrowers, 38.8% of mortgages were for home purchases while 61% were for refinancing existing homes.
So that means there are two sources for mortgage business: real estate agents who are working with new home buyers that need financing. And then there are current homeowners looking to maximize the investment in their home.
Reach out to real estate agents for mortgage leads
When real estate agents are ready to take a homebuyer out on a house hunt, they want to know one thing: can this buyer afford to buy a home? And how much of a home can this buyer afford? But according to Home Mortgage Disclosure Act data compiled by LendingPatterns.com, less than 10% of buyers who got a mortgage in 2014 had pre-approvals.
Real estate agents want to help buyers right perfect home. But they need mortgage lenders to make sure the buyers have the perfect financing.
Cultivating relationships with real estate agents is a critical way for lending professionals to keep business in the pipeline. The agents are out there finding homebuyers. If they know that you can deliver a smooth transaction and an on-time closing, the agents will strive to make you part of the transaction.
RESPA limits what mortgage professionals can do to nurture their relationships with real estate agents, as well as requiring agents refer more than one lender. But staying top of mind with agents in your area is a smart, easy way to be one of those lender referrals.
Digital ads by Zip code for mortgage lenders are effective and affordable, letting you put your brand in front of local real estate agents without having to do expensive direct mail campaigns or general print advertising. Your ads show on the web sites the real estate agents browse every day, as well as in their Facebook feed and in mobile apps.
Find mortgage leads when you reach out directly to borrowers
Studies show that more than half of all borrowers, 51 percent in fact, considered applying to only one lender. But how did they decide with which lender to apply? They went online. They did research. Which is why online visibility to borrowers in your local area is an important element in advertising for mortgage lenders.
It’s all about familiarity.
Borrowers want to work with a lender they trust. How do you build trust with people you don’t know yet? Digital ads for mortgage lenders can help. The more your ad is shown to people in your area who are researching mortgages and homes for sale, the more familiar you will seem. And the more familiar you become, the more confident they will be in your services.