Like every business mortgage venture too needs effective marketing and leads generation. With time flowing by, the mortgage brokers are following different strategies to fulfill their business objectives. Let us now have a glance at these new-age tricks and tactics:
More than a hundred percent is the chance that you have heard about call centers – the hub of telemarketing. These call centers have a business connection with mortgage brokers. People are contacted from a random call list. If the person shows some interest, the lead is then transferred to the mortgage broker. Sometimes, the nature of the lead transfer is direct and in that case, it is forwarded to the mortgage company representative.
It is a cutting-edge marketing strategy for business owners. The websites employ different attractive and fits-to-needs business tricks to generate leads for the customers. The sites contain in-details descriptions about the mortgage companies along with their contact numbers and online addresses. Those who are interested in dealing with the mortgage companies need to fill up an online application form which is then forwarded to the particular mortgage broker.
Open Market Operation
Some prefer to stick to this mortgage marketing strategy. However, the rest use it along with telemarketing and online advertising. In open market operation, the mortgage brokers arrange seminars and invite real estate agents along with property buyers. For a clear understanding of the real estate buyers, demonstrations are given in layman’s language. Nowadays presentation is done through computerized slide shows. In these seminars, often lucrative incentives are offered to attract the buyers’ group. There is no denying the fact that such mortgage marketing strategy works wonder but the flipside is that it can not be used day in and day out.
Newspaper Advertisement, Posters & Flyers
It is the most traditional way for successful mortgage marketing. The mortgage brokers use flyers, posters, and newspaper ads to create awareness among the mass regarding their marketing activities. Business comes from a certain percentage of readers who go through the ads. And with the passage of time, the mortgage brokers may notice a flurry of activities among the real estate clients.
Sometimes, mortgage brokers attract new customers through existing ones. It is done by asking for references among friends, relatives, colleagues, and neighbors. And there are other ways to attract customers. The mortgage brokers sometimes offer promotional gifts such as diaries, pens, or other items to please the customers and earn more business through them.
Apart from the aforementioned tools, out-of-the-box mortgage business strategies include networking, blogging, mail sending, etc. A clear-cut vision where the brokers want to head to is very crucial to a successful mortgage venture. They need to use every tool in order to earn maximum leads that can be conveniently converted into a profitable business.
Mortgage Bankers vs. Portfolio Lenders
Mortgage bankers fund loans but typically turn around and sell them in the secondary market to investors or agencies. Mortgage bankers borrow money from banks to fund the loans and then repay the money when the loans are sold. Most large lenders are mortgage banks.
Portfolio lenders include many community banks, credit unions, and savings and loan companies. Portfolio lenders use money from their customers’ bank deposits to fund loans so they can hold onto the loans and keep them in their portfolios.
What is a Mortgage Broker?
Mortgage brokers are like a matchmaking service: They match you, the borrower, with a lender. They review your personal financial information and look over an array of lenders and try to match you with one who will give you the best rate and terms. The advantage is choice because the broker will have lots of lenders to match you with; the disadvantage is that once the match is made, the broker is out of the picture, so you may have difficulty staying in close touch with the person who is underwriting and funding your loan.
Loan officers find new clients, counsel borrowers on how to choose the best mortgage and fill out loan applications. They typically make their money through commissions on the loans. Loan officers can also be mortgage brokers if they also process and broker loans. Loan officers are sometimes called mortgage consultants, mortgage loan originators, home loan consultants, and mortgage planners.
Lenders are the licensed professionals who give you the money either directly or through a third-party to fund your loan. Lenders have various names based on how they acquire their clients and what they do with your loan after it is funded.
Retail vs. Wholesale vs. Correspondent Lenders – How Customers Are Acquired
Retail lenders reach out directly to consumers. Retail lenders are sometimes referred to as “Direct Lenders.” Retail lending can be done face-to-face in a bank branch, online, or on the phone.
Wholesale lenders fund mortgages acquired through brokers who work outside of their company. The brokers find customers and take loan applications and then sell the loan applications to wholesale lenders to fund.
Last Words for You
Correspondent lenders are a mix between brokers and retail lenders. They technically fund loans with their own borrowed money but typically lock in rates with other lenders at the same time. This mitigates their risk because they can quickly turn around and sell the loan.