Growing Your Mortgage Business with Leads

Factors for Choosing a Mortgage Leads Company

Not all mortgage lead companies are created equally, so you need to analyze the value of each one before making a financial commitment. After all, there are tons of ways you can utilize your marketing dollars, either through networking, social media ads, or even more traditional routes. There is a place for purchased mortgage leads, as long as you know how to evaluate the information you’re paying for.

The two most important factors include:

• Whether your budget matches with a company’s offerings
• How leads are accumulated and distributed

First, consider your budget. Most companies have a monthly minimum you must meet. Even if the price per lead is within your expectations, you may need to purchase a lot of them. Don’t be surprised to see monthly purchase minimums as high as $500.

As you look at the quality of the leads, inquire about the company’s average closing ratio with existing clients. This shows you what percentage of the leads you should expect to turn into a closed mortgage and helps you determine the quality of the leads to make sure they’re not being recycled. Recycled leads are ones that are used over and over again. Those individuals may not even be house hunting anymore, making it a waste of your marketing money.

When interviewing a mortgage leads company, figure out what kind of information they’re willing to give you before you make a purchase. The most reputable companies often allow cherry picking, which lets you view the lead before you purchase it. You also may be able to filter information to hone in on the exact characteristics you’re looking for in a lead.

Cherry picking allows you to choose the exact leads you prefer to focus on.

Finally, take a look at the customer service and return policy of a mortgage lead company. They should be responsive and flexible, both good signs that the investment you spend will pay off with quality leads.

Frequently Asked Questions

by Lauren Ward

Personal Finance Writer

Lauren Ward is a personal finance writer with nearly ten years of experience covering topics like loans, credit, and real estate. She lives in Virginia with her husband and three children.