Just ask lenders buying mortgage leads what the most important filters are in 2012. They will tell you credit and loan to value are the key filters when purchasing mortgage leads.  Lending professionals continue to regard credit scores highly because for most loan programs today it is a make it or break it factor.  We noticed that credit was most important to lenders buying conventional mortgage and purchase leads. For lenders buying FHA leads, credit was important but they seem to be more flexible when it came to credit filters.

Many underwriting factors have changed for mortgage lenders in the last few years, but the importance of a credit score could not be overestimated today. Since аll studies appear tо shоw thаt thе credit score systems accurately predict whеthеr а borrower shоuld bе approved fоr а mortgage loan, bоth Fannie Mae аnd Freddie Mac (thе twо institutions thаt purchase mоst mortgage loans nationwide) hаvе аdорtеd credit scoring guidelines fоr mortgage lenders whо sell loans tо thеsе agencies. Whіlе 620 usеd tо bе considered аn acceptable credit score fоr Fannie Mae аnd Freddie Mac, 680 іs nоw considered thе minimum score tо hаvе acceptable credit fоr thеіr programs. Тhоsе bеtwееn 620 аnd 680 іn thе current market will hаvе tо lооk tо thе FHA program fоr а mortgage unlеss thеу аrе making а dоwn payment оf аt lеаst 20%. The minimum credit score with FHA home loans is 500, but most FHA lenders require borrowers to have scores between 580 and 640.

In the past, Fannie Mae аnd Freddie Mac offerd home mortgage loans tо borrowers wіth credit scores bеlоw 620 but mоst оf thоsе programs аrе gone. With credit score considerations impacting home loan applications sо strоnglу, making surе one’s credit report іs accurate bесоmеs mоrе critical thаn еvеr. Іn thе раst, а borrower соuld simply оbtаіn documentation tо shоw thаt аn account wаs nоt late оr dіd nоt belong tо thе borrower аnd include іt іn thе application tо оbtаіn approval. Today, іf thаt іnfоrmаtіоn brings а borrower’s credit score bеlоw 620, еvеn іf іt іs nоt correct, thе borrower іs stuck untіl thе іnfоrmаtіоn саn bе removed frоm thеіr credit reports аnd thе report саn bе scored аgаіn. Тhе good news іs thаt mаnу credit reporting agencies usеd bу mortgage lenders саn nоw offer error corrections wіthіn а fеw days іnstеаd оf thе weeks аnd months thаt іt usеd tо take.

If аll incorrect іnfоrmаtіоn hаs bееn removed frоm а report аnd thе credit score іs stіll bеlоw 620, thе borrower will nееd tо work оn improving thеіr credit history оvеr аn extended period оf time (Ѕее article оn Strategies fоr Boosting Υоur Credit Score). Тhіs process соuld tаkе аnуwhеrе frоm оnе month tо three years depending оn thе severity оf thе problem. Тhе good news іs thаt оnсе borrowers reach 620 оr higher, thеу will іmmеdіаtеlу bесоmе eligible tо bе approved fоr аlmоst аll mortgage loan programs.

Borrowers whо nееd tо buy а hоmе іmmеdіаtеlу аnd саn nоt wait fоr thеіr credit scores tо improve аrе left wіth оnlу twо options. Оnе options іs tо search fоr оnе оf thе dwindling number оf mortgage lenders whо аrе nоt usіng credit scoring tо evaluate borrowers. Portfolio lenders will bе mоst lіkеlу tо bе thе longest holdouts іn adopting scoring systems. Тhе оthеr option іs tо move tо whаt іs called thе “Sub-prime” mortgage markets, whеrе borrowers wіth poor credit histories саn оbtаіn mortgage loans аt higher interest rates.

Finally, thеrе іs sоmе good news fоr borrowers wіth thе best credit scores. Маnу mortgage lenders аrе nоw offering borrowers thе chance tо save 1/8 оr 1/4 оf а point оff thе points fоr а fixed rate loan. Fоr а $200,000 loan, thіs savings саn translate іntо $250 tо $500 аt closing. Borrowers shоuld inquire іf thеіr lender hаs started а sіmіlаr program whеn submitting аn application.

 

Brokers who deal in mortgages know that obtaining worthwhile leads can be difficult in this highly competitive industry.  If you are interested in buying internet mortgage leads you will soon come to realize that online mortgage leads have many benefits over other lead-obtaining methods.  Along with understanding the benefits, you will also want to know what sources to turn to online that allow you to choose filters, states, loan type, loan amount, and more.  Customizing your leads like this is very important to benefiting the most from them.

• FHA Leads
• Mortgage Refinance Leads
• Purchase Leads

One reason to look into buying internet mortgage leads instead of obtaining them through other means is that they are more cost-effective.  While some online mortgage leads still cost more than others, you should be careful to understand how old the leads are that you are buying.  After all, the hottest leads—the ones that have not been contacted yet and still have a high probably of interest—are the best leads that will end up being the most lucrative.  Also, mortgage leads obtained online are more accessible than direct mail, radio, or television.  Everyone relies on the internet today, and you can bank on that when you buy your mortgage leads.

Cost-Effective and Accessible Online Mortgage Leads

One popular source to turn to is called Lending Tree.  This company was launched in 1998 and has provided 25 million brokers and borrowers with the chance to work together.  High-quality, cost-effective online mortgage leads can be acquired here.  Lead Planet is another direct lead company where you look into buying internet mortgage leads.  It is easy to request online mortgage leads here that are more accessible than direct mail, radio, or television.  With both of these options, you can choose filters, states, loan type, loan amount, and more.  Your final decision of whether to choose Lending Tree, Lead Planet, or another source altogether will be based on the cost-effective leads you are able to obtain based on the criteria you are searching for.

Online mortgage leads differ greatly in quality based on how old the leads are, whether or not they are recycled, if live transfer is available, and if the leads are provided in real-time.  If you can get your hands the best kinds of leads from Lead Planet or Lending Tree, your efforts will be most cost-effective.  It is clear that buying internet mortgage leads is in your best interest, but remember that the kinds of leads you obtain will be just as important as the method you choose for obtaining them.

 

Internet mortgage lead generation continues to be a hot topic for lending companies across the country.  With not all companies being able to afford the Lending Tree, many companies are searching for a good mortgage lead generator to help them harvest leads organically online.  In a recent article, Lead Planet founder, Bryan Dornan said, “The best mortgage lead generators understand the niches and needs of the brokers and lenders who are originating loans in 2011.”

Tips for Mortgage Lead Generation

1. Align your company with a company that specializes in mortgage marketing.
2. Publish original content on your website that offers a benefit to the user.
3. If you are buying mortgage leads, make sure you are dealing with a direct source
4. Invest your marketing dollar with several lead companies.
5. Measure lead quality and track conversion rates from all mortgage lead companies

 

Most loan companies can reference a bad experience buying online mortgage leads.  The sad reality is that it is much easier to fail at internet mortgage lead buying than it is to have success.  As the cost to originate loans continues to rise, the profit margins are thinning out you must be a good steward with your mortgage marketing dollars.

Unfortunately there are many unscrupulous lead brokers out there that are will to sell you fake or over-sold leads with a lot of promises that are rarely kept.  We thought it would help you to provide you tips to buy online mortgage leads for higher conversions and better results.  Internet mortgage leads can be cost-effective marketing tools that can make your loan company very profitable, so consider the following tips below.  Buidling a relationship with a genuine online mortgage marketer can be very difficult.  When the mortgage market crashed a few years ago, most online lead companie went under because the attrition of mortgage lead buyers was so great.  Finding one that survived the market shake-down will be a challenging but crucial task for those in charge of a marketing busget for a loan company.

1. Find a Lead Company that Generates their own Mortgage Leads Online.  These types of marketing companies have control over their leads inventory and specifically how many times the leads are sold.  We recommend working with a mortgage lead company that has daily inventory and owns multiple websites.

2. Compare the Terms of Lead Companies – You need to know the return policy of the company you are buying leads from.  Any good mortgage lead generation company will not accept a return if applicants don’t like your rates, but most will offer you credit if the information is bogus or the person doesn’t own a home or the applied for a cash out refinance. Another good reason for returning the lead would be if the home was a mobile home and the applicant had completed the application as if they had a SFR home on a permanent foundation.

3. How Many Times the Leads Are Sold – You want to buy leads from a company that is not selling the same lead more than 4 times.  Companies like the Lead Planet are selling their leads 1 to 3 times and the Lending Tree continues to sell their leads 4 times.  Some lead companies are selling the same lead 10 times.  Stay away from this, because you can imagine how irked the applicant would be if 10 different loan companies were hounding them.

4. Buy Leads from Multiple Sources – Even if you have a lead source that produces good mortgage leads, make sure you are buying leads from a few different sources.  Internet marketing results fluctuate, so even the good lead generators have down days, weeks or months.  Do not put all your marketing eggs in one basket.

 

Lead Planet published their monthly mortgage lead survey yesterday.  The mortgage lead generation report surveys a wide range of mortgage websites across the United States and measures the volume of mortgage leads monthly.  According to the mortgage marketing company, mortgage leads rose almost 2% on a seasonally adjusted basis from one month prior.  This report is important to lenders and banks who want help buying mortgage leads and forecasting their monthly marketing budgets

Mortgage refinance lead volumes increased 1.9 % from the previous month.  According to MBA, home refinancing maintains a 78% of the market-share measuring the total applications (purchase and refinance).

Home purchase leads rose nearly 1.4% from one month earlier.  This was the 3^rd straight month that mortgage refinance leads rose.  While this was the 1^st month in the last 3 months that the purchase lead volume rose.  According to a Lead Planet spokesman, “New homebuyers have been a bit tentative since the homebuyer tax credit expired on April 30^th.

The Mortgage Lead Vault offers a wide variety of mortgage loan leads. Loan companies can choose from  conventional, jumbo VA and FHA mortgage leads. We also offer debt settlement and loan modification leads to financial advisors and mortgage relief companies.

 

The Lead Planet publishes another article worth reading if you care about maximizing your mortgage marketing dollars.  The mortgage lead company discussed the importance of working purchase and refinance leads in today’s mortgage industry climate.  Lead Planet founder, Bryan Dornan said, “Rates may be at record lows but guidelines are the tightest they have been in at least 15 years.”  Dornan continued, “Loan officers need to multi task more and build some relationships that start with purchase leads.”  It’s a purchase market that is flourishing right now.  Home purchase loans have a priority with loans in process for the major banks like BofA, Chase and Wells Fargo. 

The Lead Planet points out that direct mail marketing costs have risen and the return rates have been lower because of the saturation. Most mortgage shops “are surviving with internet mortgage leads, but the companies that seem to be funding the most loans every month are the shops that are buying both purchase and refinance leads.”  The Lead Planet recommends buying blended mix of both purchase and refinance leads.  Take a minute and call the Lead Planet at 619-600-5720 and get a complimentary mortgage lead evaluation.  Read the original article online at > Originate More Loans Buying Purchase and Refinance Leads.

 

Buying mortgage leads online is an ongoing process.  Another good method to maximize marketing is to simply talk you’re your colleagues about which lead companies they like and dislike.  Find out about their lead buying experiences and you will likely gain more insight on new mortgage lead company.  It is important to remember that often your friends and colleagues are still your competition don’t expect full disclosure on their best marketing sources. 

Research a variety of mortgage lead generation companies. Quite often lead companies’ quality will vary, so buying from a variety of online mortgage lead companies is recommended. The cost of internet mortgage leads will vary significantly.  For example, a live transfer lead will range from $25 to $75 depending on filters and quality.  A non-exclusive mortgage lead will range in cost from $10 to $25. The conversion rate for mortgage leads will vary greatly as well and that’s why it is important to buy leads from multiple lead companies that you trust. 

Partner with an online lead generation company.  Companies such as Like the Lending Tree and the Lead Planet offer leads to mortgage lenders and brokers at a discounted rate if the lead buyers commit to volume buying.

Research the market in which you originate loans. You may find eager applicants in states that you would least expect.  Buy leads that uncover your lending niches.  For example if you do VA and FHA leads, then make sure you buying mortgage leads with these filters. 

Mortgage Lead Management: Track the conversion results. Inspect what you expect.  Manage the mortgage leads you buy and make sure your loan officers are working the leads in a timely manner.  Buy more leads from the company when you figure out which source gives you the best conversion rates. Call 888-271-9581 to speak with a lead sales executive.