Mortgage Lead Companies, The Right One for You.

Choosing the Right Mortgage Leads: A Guide for Loan Officers and Mortgage Brokers

When sourcing mortgage leads, understanding the different types available and aligning them with your budget and strategy is crucial. Here’s a breakdown of the key options and tips to help you make an informed decision.

1. Budget Considerations

• Minimum Deposit: For those on a tight budget, look for lead companies that offer low minimum deposits. Typically, a minimum deposit of around $100.00 is considered low and accessible for starting out.

2. Types of Leads

• Exclusive Leads: These leads are sold to only one buyer—meaning you and you alone will receive the information. This type of lead is valuable as it ensures you are the sole loan officer or mortgage broker working with that lead. Exclusive leads generally have a higher cost due to their exclusivity but offer better potential for conversion.

• Non-Exclusive Leads: Non-exclusive leads are sold to multiple buyers (usually up to five). If you purchase these leads, you’ll be competing with other loan officers or brokers who also have access to the same lead. This can lead to increased competition and potentially lower conversion rates.

3. Lead Purchasing Methods

• Cherry Picking: Cherry picking allows you to review leads before purchasing them. This method enables you to select leads that best fit your criteria, potentially improving your chances of success.

• Real-Time Leads: Real-time leads are delivered to you immediately after a customer submits their online application. By setting up filters for lead type, loan-to-value ratio (LTV), loan amount, credit rating, state, and other criteria, you can receive leads that match your specifications almost instantaneously. The freshness of real-time leads can contribute to higher quality and better conversion rates.

4. Avoiding Junk Leads

• Recycled Leads: Junk leads, or recycled leads, are those that have been bought and sold multiple times before reaching you. These leads often have low conversion rates because they have been extensively marketed to, reducing their effectiveness. Avoid companies that sell recycled leads to prevent wasting time and resources.

5. Research and Customer Service

• Do Your Research: Before committing to a lead provider, conduct thorough research. Look into the company's reputation, read reviews, and ask for references.

• Customer Service: Contact the company’s customer service and ask detailed questions about their lead generation process, lead quality, and any guarantees or policies they offer. If the customer service experience is lacking or the answers provided are unsatisfactory, it’s a red flag that the leads may not meet your expectations.

Summary

Selecting the right mortgage leads involves evaluating your budget, understanding the types of leads available, and choosing a reliable lead provider. Focus on exclusive and real-time leads for higher quality and effectiveness, avoid recycled leads, and ensure you’re satisfied with the lead company’s customer service. By following these guidelines, you can improve your chances of finding quality leads and closing more loans.