attracting borrowers

How can local lenders generate more mortgage leads with growing competition?

Mortgage marketing has evolved over the years; consumers have access to more lenders than any other time, expect faster approvals, full transparency, and if not they are ready to share their unpleasant experience online.

Generating mortgage leads for your bank or mortgage company requires a sound and well thought -out strategy:

Start with defining your differentiation

If you want to close more loans this year? Then you need to utilize these 4 sales tips for loan officers.

1. Connect With Your Customer
How do you connect with a customer?  You connect with their dream. What is motivating them to make this purchase or refinance decision?

•        Everyone has a dream or motivation for purchasing a home. Owning a home is a desire shared by many people, for a variety of reasons. Some people with a family want to be in a good school district, buy a home closer to work,  or prefer a house with that has an extra room for the kids, a laundry area, home office, etc.

•        An additional dream your prospect wants is to get a great interest rate. That’s usually the first thing an online mortgage lead is going to ask, “what’s your rate?” That’s what they are shopping for and all they care about. You’re basically just a number to them, just like they’re just a number to you.

•        You need to ask them about the house they’re buying. This communicates to them you have some care. Was it the first house they made an offer on? What do they love about it? Is it near a park, restaurants, a good school, etc.? Is it a better commute to work? 

There has to be something they love about that house, or they wouldn’t make an offer on it. You need to find their important motivation so you can establish a connection. Spend a minute sharing their excitement in whatever way is natural to you. Who doesn’t love less traffic? That’s more time to sleep in the morning; more time to enjoy your evening.

•        It’s important not to come off as fake. It has to be natural or you’re better off just giving them the rate.

•        In a natural, conversational way while you’re checking information you need to give them a rate quote.  Ask if they know anything about the area and throw it into the conversation while you’re inputting their criteria to get a accurate rate quote. It’s important to build a rapport with the customer first, so they’ll remember you.

2. Have An Extensive Conversation About Rates
When you quote them a rate based on their specific financing scenario, ask what other quotes they’ve received. Because if you’re going to differentiate yourself, you have to persuade them you have the best rate & process they’ll experience.

Let’s say they were quoted a lower rate. Don’t quit so soon – ask what the terms are. It’s possible that lower rate is for 25% down payment as opposed to 20% down like they inquired with you about.

Maybe that lower rate has a higher APR because they are charging 1-2 points, and your offer has a lower APR is costs half a point or zero points. Their low ball quote might be for a 15-day rate lock and you quoted them a 30 or 45-day lock. You have to ask questions to come out ahead.

3. Impress The Customer With Your Knowledge
After you’ve briefed them on rates, you could go over everything they need to know about getting approved, the required documents, typical closing costs to expect, approximate timelines, etc.

•     If they don’t have any questions then you ask questions such as “Are you paid on a 1099 or a W2? 

•     Inquire about their assets and funds to close. Are they in an account with only your name?

•     Inquire about their credit accounts and score if they know it. How long have they had these accounts?

•   This shows them you are pro-active and looking into all factors to make sure they have a higher chance of being approved.

•   Why do this? It’s human nature to be conditioned to using the person they’ve just devoted 30-minutes on the phone with. The thought of giving all of this information again to a new loan officer would make them hesitant.

4. Follow Up
You can establish a rapport, give them a great rate quote,  lower fees, make them confident you’ll get their loan closed, from that first phone call, but if you fail to follow up, that call is meaningless.

You have to consistently email and communicate with your clients during their home search, especially in areas of high demand or multiple offers. If you’re not communicating with them, maybe another loan originator is. 

•  Building a rapport with them, helps them remember you, not the company, not the rate so much if you’re the same as competitors. You’re not quoting Lead #15 from Tuesday. You’re talking with James and Rachel, who want a house with a view of the park, and a nearby school with a 9 rating for their 7-year old daughter.

 • And speaking with you, they’ll know you have their best interests in mind. You’ll make it happen, and with the best possible terms. Once you follow up with them, you’ll be closing more loans in 2019.