Buy Mortgage Leads – What to Look For?

Posted on | April 4, 2011 | No Comments

The idea of purchasing mortgage leads from organizations the generate them may be unusual for some, but its effectiveness has been driven by society’s increasing adoption of the web as an information source. There are an increasing amount of people who are actively looking to purchase a new house. These same people are shopping around for comparable mortgage rates on the internet before they even begin to contact anyone directly. By collecting the contact information of these people, businesses are able to offer qualified leads to mortgage brokers.

While the concept of buying leads from a third party can make sense from an efficiency viewpoint, the truth is that “low-quality” businesses have also joined the ranks in this marketplace, pretending to be quality businesses. One thing to look out for is giving up credit card information. Be very careful and only do this when you are sure that the business is credible. Look for a business address that you can verify on Google Maps. Evaluate the contact phone number. Is it an 800 number or 888? Call and talk to a sales person. Find out how long they’ve been in business and why they are better than the competition. Evaluate their website and determine if there is a Verisign symbol on your browser. This will determine whether your information is secure.

Once you are comfortable with the business, you must evaluate the types of leads you will purchase.

Determine the quality of the lead

• Evaluate their freshness – fresh mortgage leads are delivered within 48 hours of their generation. The longer a lead is sitting before being contacted, decreases its chances of becoming a client.
• Evaluate their accuracy – some companies literally collect information from directories on the internet and sell them to individuals as leads. The web allows lead gene companies to verify contact information from potential leads. This increases their close rate.
• Evaluate their sincerity – How were the leads generated? Some businesses falsely collect information by launching random contests which have nothing to do with their intention to buy a home. Make sure that your leads are fully intending on obtaining a mortgage.

The average mortgage lead will cost you between $10-$30. The average conversion rate (percentage of people who buy a mortgage) is between 5%-15%. In the end this is what really matters. How many of the leads you purchase eventually purchase a home. While the cost of the lead may be relatively high, always look at the quality of the prospect. It may be worth paying a higher fee in exchange for a targeted lead.

After your leads have been purchased, make sure to call the prospect as soon as possible. Present yourself professionally and offer solutions tailored to your client’s needs.

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