Purchasing Mortgage Leads: A Guide For Beginners

Mortgage leads are an important element of a lender's business. They are potential customers who have expressed an interest in purchasing a home or refinancing their current mortgage. There are a number of ways to generate mortgage leads, including online advertising, direct mail, and telemarketing. One way to purchase mortgage leads is through lead aggregators, who sell exclusive and non-exclusive leads. Exclusive leads are more expensive and may only be sent to a few lenders, while non-exclusive leads are more affordable but may not always be up-to-date. Another option is to purchase aged leads, which are leads that are 30-85 days or 86-500 days old and are typically cheaper. It's important to research the reputation of lead aggregator sites and be cautious when purchasing leads to ensure they are not recycled or resold. Additionally, showcasing your specialty and using content marketing can help attract more qualified leads.

How do I purchase mortgage leads?

Exclusive vs non-exclusive leads

When it comes to purchasing mortgage leads, there are two main options: exclusive leads and non-exclusive leads. Both have their own advantages and disadvantages, and the right choice depends on your specific needs and budget.

Exclusive leads are only sold to one loan officer or company, meaning there is no competition when trying to win over the borrower. This lack of competition increases conversion rates and gives you a better chance of closing the deal. Exclusive leads are typically more expensive than non-exclusive leads, with prices ranging from $40 to $90 per lead.

On the other hand, non-exclusive leads are sold to multiple loan officers or companies. This means that you will be competing with others to win over the borrower, which can be challenging and may drive potential clients away. Non-exclusive leads are much more affordable, typically costing around $10 to $20 per lead, or even lower for older leads. However, they may not always be the most up-to-date option as they are sold more often than exclusive leads, and the borrower may have already chosen another lender.

Another option to consider is aged leads. These are leads that are considered older, typically ranging from 30 to 500 days old. The older the lead, the less money it costs. Aged leads can be purchased in bulk at a significant discount, allowing you to start contacting potential borrowers right away. This option can be particularly cost-effective if you are looking for a large volume of leads.

When purchasing mortgage leads, it is important to consider your budget and the specific needs of your business. You may also want to look into lead generation companies, such as Mortgage Leads Direct or Lead Planet, which offer real-time delivery of qualified leads. Additionally, don't underestimate the power of digital marketing and social media platforms like Facebook, YouTube, and LinkedIn to generate your own leads.

Online reviews

For instance, Salesgenie, a well-known lead generation company, boasts an impressive rating of 9.98 out of 10 from over 1300 reviews. Positive testimonials highlight the helpfulness and knowledge of their staff, the flexibility and communication of their team, and the ease of using their platform for new business owners. Such reviews inspire confidence in Salesgenie's ability to deliver reliable mortgage leads.

Similarly, AgedLeadStore.com, a platform specialising in aged mortgage leads, showcases testimonials that attest to the responsiveness and supportiveness of their founder, Troy Wilson, as well as the effectiveness of their leads and the competitiveness of their pricing. These reviews indicate a positive experience for their customers, which is an important consideration when choosing a lead provider.

Real Estate Bees offers a unique model where users can earn free leads by actively contributing to their platform. Their reviews mention the benefits of their performance-based algorithm, which rewards users for activities like answering questions, sharing market insights, and submitting client reviews. This incentivises engagement and provides an opportunity for users to access leads without incurring upfront costs.

When evaluating online reviews, it is important to consider a range of factors. Firstly, look for reviews that discuss the quality of the leads. This includes the accuracy of contact information, the responsiveness of leads, and their genuine interest in mortgage opportunities. Secondly, assess the company's data management practices. Reviews that mention up-to-date data, advanced analytics, and customisation options indicate a more reliable and tailored service. Lastly, take note of reviews highlighting the company's customer support. Effective communication, responsiveness, and a willingness to address issues are all positive indicators of a company's commitment to their clients.

By carefully considering online reviews and testimonials, you can make a more informed decision when choosing a lead generation company, increasing your chances of success in purchasing high-quality mortgage leads.

Pay-per-click (PPC) advertising

PPC advertising can be highly effective when executed with precision and a deep understanding of its mechanics. It requires careful budget management and continuous optimisation to be effective. Ad platforms like Google Ads operate on an auction system, where the most competitive keywords often come with high price tags. Therefore, it is crucial to understand keyword bidding strategies and continuously monitor and refine your keyword list to ensure you are investing in terms that deliver the best results.

When creating a PPC campaign, consider the searcher's intent behind the keywords. Understanding whether the user is seeking information, comparison shopping, or ready to take action can guide your keyword selection. For example, targeting "best mortgage rates in [city]" is often more effective than simply using "mortgage rates" as it targets users with a clearer intent to engage. Group keywords into tight themes for each ad group to enhance relevance and increase quality scores, which can lead to better ad placements and lower costs.

Additionally, it is important to analyse competitors to understand which keywords they target. However, be cautious of highly competitive terms that might inflate costs. Determining the right budget for a PPC campaign requires balancing potential reach with cost efficiency. While PPC can provide immediate benefits, the costs can escalate quickly without proper management and optimisation.

To make the most of PPC advertising, consider using available tools to automate the creation and management of ads, saving time and improving results. By understanding key concepts, carefully managing your budget, and continuously optimising your strategy, you can drive growth and achieve your marketing objectives.

Lead aggregators

Some popular lead aggregators include LendingTree, Bankrate, NerdWallet, Credit Karma, and Zillow. LendingTree, for example, serves as a comprehensive loan marketplace, connecting lenders and borrowers from various business avenues. When a potential borrower submits a loan request, LendingTree provides their information to five matching lenders, who can then compete for the sale. This platform is particularly attractive for lenders as it offers accurate targeting and a wide reach.

Bankrate, NerdWallet, and Credit Karma also offer rate comparison tools, allowing borrowers to compare rates from multiple lenders in one place. This creates a cycle where lenders pay to be featured, and the revenue is reinvested in advertising to attract more borrowers.

Zillow, a real estate giant, also offers a rate table where lenders can purchase exclusive leads. However, participating in the Zillow rate table comes with the competition of Zillow Home Loans, a lending arm launched by the company itself.

Another type of lead aggregator is MonitorBase, which focuses on mortgage trigger leads. These are leads generated from consumers who have recently applied for a mortgage with another lender. Mortgage trigger leads are popular because they target consumers who are actively shopping for multiple offers before finalizing a transaction. This provides an opportunity for lenders, especially those with niche products, to step in and potentially secure the deal.

When considering lead aggregators, it's important to evaluate factors such as the platform's reach, targeting capabilities, cost per lead, and exclusivity of leads. Additionally, some platforms may cater to specific types of loans, such as refinance leads or first-time homebuyer leads, so choosing a platform that aligns with your target audience is crucial.

Aged leads

These leads can be a great way to build a pipeline of potential customers, especially for new brokers who are looking to get their name out there and establish a client base. They are also useful for those who want to target a specific demographic or location, as aged leads often come with detailed information about the borrower, including their location, loan amount, credit score, and more. This level of detail allows for a more tailored approach when reaching out to these potential clients.

The process of purchasing aged leads is straightforward. Lead generation companies typically have an online platform where you can create an account and browse their inventory of aged leads. You can filter the leads based on various criteria, such as the borrower's location, loan type, or credit score range. Once you've selected the leads you're interested in, you can purchase them directly through the platform. The leads will then be delivered to you in a digital format, usually via email or through a download link.

It's important to note that aged leads may not be as responsive as fresh leads, as they have likely been contacted by multiple brokers or lenders already. As such, your conversion rates may be lower with aged leads. However, the lower cost of these leads means that even a few conversions can result in a positive return on investment. To improve your chances of success with aged leads, it's recommended to have a strong follow-up strategy in place, such as a drip marketing campaign, to stay top of mind with these potential borrowers.

Frequently asked questions