7 Tips To Convert Mortgage Leads Generated Online

7 Tips To Convert Mortgage Leads Generated Online

BY MICHAEL MCALLISTER | SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL

Mortgage loan originators love a good lead. They love leads from real estate agents. They love leads from previous customers. They love leads from any contact in the banking industry.

Now, they are learning to love leads from their online marketing efforts. They love that they’re getting huge lead generation from their social media, online advertising effort, etc.

What they don’t love is that they just can’t seem to convert those leads into loans at the same rate they did from their more traditional sources.

Mortgage loan officers must realize converting Internet leads requires a different skillset and maybe a different timeline than they previously experienced.

But there is hope. Lenders who follow these seven tips to convert sales funnel leads into loan applications will learn to truly love their online leads and be able to convert them in less time than they may think:

1. BE RESPONSIVE

As house hunters are taking control of their home buying journeys, they expect to also gain more control over how they obtain a mortgage. A piece of that journey is that they expect immediate answers.

Therefore, you should respond within five minutes of when they supply contact information through your website or one of your automated campaigns. Text messages are the preferred manner of contact for about 80 percent of respondents.

Your text should just be a quick either-or question. For example, “Are you interested in applying for a mortgage or seeking general information about the mortgage process?” is a great initial question. This allows you to begin building a profile of the lead to gauge how strong of a prospect you’re contacting. Of course, if they say they are interested in applying, call them right away and start the application process right on the phone.

Otherwise, engage with them via text and ask a few questions about their credit, income, debt, and assets to build rapport. You can also identify if it is somebody you can actually help.

2. KEEP RECORDS OF CONTACTS

This is an important step in the process that many mortgage lenders must adapt to. If your company has a customer relationship management program, put it to use for your advantage. You might be dragged into the CRM world grumbling and complaining, but once you learn to leverage the data to your advantage, you’ll be able to convert at a higher rate.

Log each communication you have with your prospect and add details about the transaction. Did you learn where they want to buy? What is their budget? How much do they have for a down payment? Do they have two kids and a dog? The more details you have about the lead and the more you can keep that at your fingertips, the more you’ll impress them during future communications.

If you don’t have a fancy CRM, you can still do the same work with a spreadsheet. The advantage of a CRM, however, is that you can record this information from wherever you are, whether that’s in the office, at home, or on your phone in the car.

3. BE PERSISTENT

Continue to follow up with your leads. Salesforce notes the average sales conversion takes about 6 to 8 touches, so don’t get discouraged if your lead isn’t ready to make an application on the second contact.

You can vary your contact methods after the first text or call. Add them to an email list or link them to your YouTube channel. How often you’ll make contact will depend on how good of a prospect you consider them to be. Those high on your scale should get more frequent contact, while those down the list might just get a reminder email after a week or two.

4. GIVE JUST ENOUGH INFO TO HOP ON A CALL

Some leads might just be fishing for information from you while they take their buying journey elsewhere. If they ask how much they need for a down payment, say something like, “It depends upon your goals.” Then ask how much they have saved and how much they would be comfortable spending on a monthly payment.

Some Internet leads also might be your competitors just testing your system and trying to get inside information from you.

Don’t sound like you’re hiding information — just develop a feel about how far the lead might be in their journey toward an application before you share your valuable knowledge.

5. LEARN THEIR HOUSING DESIRES

Shopping for a house is much more fun than lining up the mortgage. It’s easier to get your prospective lead to talk about what neighborhood they are interested in, what they expect to pay monthly, or what length of a mortgage they feel comfortable with.

Drawing this information from the lead gives you a greater feel for how close they might be to actually buying a house and applying for a mortgage.

With the Internet, many buyers jump into the research journey well before they are ready to actually buy a house. That doesn’t mean they aren’t good prospects, but they might take longer to buy a house. It may just mean they need someone who will make them feel comfortable enough to take the next step.

6. GET THE APPLICATION

Never forget, the biggest commitment you can get from an Internet lead is for them to fill out the application. Be ready at any stage to take that giant step, whether online, over the phone, or in your office.

Did you realize that Quicken Loans pays their bankers based on when they file an application, not on the close of the mortgage? That’s how valuable the application is.

The easier and quicker you can make the application process, the more customers are going to buy in.

7. KEEP IT HUMAN; KEEP IT REAL

Don’t forget to have some fun with your customers along the journey. Just because it’s the Internet doesn’t have to mean it’s going to be an impersonal journey.

Make sure they know you’re sharp as a tack, enthusiastic as hell, and ready at any moment to usher them through the journey. Buying a house is a huge event in most of your customers’ lives, so they must feel they are working with someone trustworthy with the greatest integrity — someone they like!

If so, they will understand you are looking after their interests and will put their faith in your hands at this most important time in their lives.

That, my friend, is how you take an impersonal Internet lead through a journey from mere curiosity to being a serious mortgage applicant. Hopefully, when you have shown them your passion for helping people get into their dream homes, you’ll even turn them into brand evangelists who are willing to promote your services.

Michael McAllister is the founder of both Empower Funnels and Idaho Mortgage Source.