There is no question that the internet has revolutionized the way business is performed, and it goes without saying that this change also applies to the way people compare, evaluate and shop for mortgage products. Today, more and more consumers are shopping online to study and purchase mortgages, and as a mortgage broker you must recognize this shift in strategy and learn to utilize it to your full advantage. Here we will discuss online mortgage leads in some detail to help get you up to speed.
Each day, thousands of internet mortgage shoppers fill out forms on online mortgage and lending websites, and once they have filled these forms out, they are made available to brokers like you via online mortgage lead brokers. The question, then, is this: Are these leads worth your time, effort and money? Is there a reasonable percentage of quality leads out there to make it worth your while? The following information should help you make your decision.
What Makes a Quality Online Mortgage Lead?
Quite simply, it’s a lead that closes, right? Not necessarily. Granted, if all leads were to close it would be terrific, but that’s not very realistic. What is realistic is about a 10-15 percent closing rate. With those percentages, buying internet mortgage leads should be worthwhile, at least in terms of cost. Here are some factors to consider before buying a set of online mortgage leads:
• Is the Lead Fresh? We cannot stress enough how vital it is to make sure that the leads you are being sold are fresh and have yet to be acted upon. Check with the seller and ask them how long they have had the lead and what has been done with it up until now. The last thing you want is a 6 month old lead that has already proven to be a dud. A good rule of the thumb is to make sure the lead is no more than 48 hours old at the time of purchase.
• Is the Lead Accurate? Even with all of our advanced technology, there are still instances of internet mortgage shoppers who will either intentionally or unintentionally enter the wrong data. This can be a nightmare to a mortgage broker. Before you purchase a lead from an online mortgage leads broker, double check that they have verified all of the personal and financial information.
• The Lead is True. What is a “true” lead? A true lead is a lead in which the user/shopper has initiated the process of trying to secure a mortgage product. Watch out for leads which were generated by some incentive—leads which often lead to nothing more than frustration and a complete waste of time.
When purchasing an online mortgage lead, try to be realistic in your expectations. Remember, a success rate/closing rate between 10-15 percent is considered to be very good for this type of lead generating strategy, so be patient and start slow. Keep in mind that you are purchasing leads, not sales, and an accuracy rate of 90 percent and closing rate of about 9% puts you well ahead of the game.