Wednesday, November 19, 2008

The Basics of Mortgage Leads

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What a lot of people do not know is that mortgage leads is another one of the more lucrative leads that lead generating companies sell to mortgage and lending companies. Depending on how qualified a lead is, loan officers and mortgage brokers shell out huge amounts of money to obtain the information they need on these people who might need to take out huge loans to purchase a house or to refresh an existing mortgage. With the huge demand for leads like this, it is then no wonder that numerous lead generating companies focus a lot of their efforts on this kind of a lead. How do these lead generating companies gather this information and what information is often included in these mortgage leads? Where do some of these leads come from? How do these leads get found by the lending companies that can give them the loans that they need?

Lead Gathering Techniques

One of the more common ways for lead gathering companies to get the mortgage leads that they sell to lending brokers and housing loan companies is to have a prospect fill out a pre-qualification form online. The people who fill these forms out are usually people who search for mortgage companies to approach for their needs or are curious to find out how they can secure a housing loan. Since these people click on sites that are often results of a search for “mortgage loans”, you can be sure that they will find themselves on the landing page of either a mortgage company that is gathering its own leads or a lead generating company that gathers the leads for other entities who need them.

When you find yourself on such landing pages, you will usually be met with a pre-qualifying form you need to fill out. These forms are often offered as free mortgage quotes for those who need to know how much they can borrow, although the free quotes and assessment they need do not come as soon as they fill out these forms. People who fill out these online forms usually get a call from a loan broker or a lending consultant a few days or even a few weeks after they fill out these forms. The information that is gathered by these companies on these sites are actually sold to the people who make these calls. Usually when lead gathering companies get this kind of an information from the forms that they post on the internet, they often sell these to more than one client. Since these forms are often detailed and are often filled out by people who are in need of these loans, they are often considered qualified leads.

When people fill out a lot of these online forms to get the information they need, they usually find themselves inundated by calls and emails from the lending brokers who buy this kind of information. This may be because the information is sold to numerous similar entities due to the number of times a mortgage information sheet is filled out.

Another way that mortgage leads are gathered is through credit report information. Some lead generating and selling companies get their leads from these reports that are triggered by a mortgage application. People who often belong in a list like this that credit reporting agencies have are often people who are looking to get a second mortgage, a refinance or a home equity loan. This kind of a lead is often used by lending institutions who specialize in sub- prime lending. This kind of a lead is still considered as qualified as the leads that have people fill out inquiry forms online about mortgage needs and are also sold to mortgage companies and lending institutions at a premium rate.

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Thursday, November 6, 2008

How to Work with a Mortgage Lead Company More Effectively

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In truth, you can generate mortgage leads on your own. You can make use of both offline and online strategies for that. However, you also know that it’s going to be a lengthy and time-consuming process. That’s why when you want to get excellent home equity leads and refinance leads fast, you settle for a mortgage lead company.

These mortgage lead generators can be found everywhere, but they usually set up their business online. The industry itself has received criticisms from mortgage lead buyers, especially on the way they collect leads as well as their quality. Nevertheless, some of them are really good at what they do, and these are the companies that you may like to look for.

Because buying leads is never cheap, you have to make sure that you don’t waste your investment. You can take note of the following things when looking for the right mortgage lead company:

1. Research and research. This could not be stressed enough. How many lead buyers actually do this process? Perhaps the mortgage lead company you’re currently dealing with has been recommended by a friend who’s also into business or a mortgage lead broker. But it doesn’t necessarily mean that they are what you’re searching for too. Who knows that all of you have different criteria for the company you want to work with? When you’re in the process of researching, obtain as much information as you can about the company, even the names of people who are handling the business. You also have to know their services, their contact information, and even the process they used to get leads. You may end up with those that process leads with mortgage brokers, which can be bad for your pocket, since you can always cut the chase and go straight to the latter.

2. Read testimonials or ask for references. You may also want to get an idea of how they deal with their mortgage lead buyers, as well as the overall buying experience. This step is very important because it actually allows you to already have a good idea if the company you’re dealing with is real or not. The legitimate ones know this, so they are not really afraid of giving out names of their clients. The shady companies, however, will be apprehensive, knowing that they may giving away fake names or that they have not really provided useful refinance leads or home equity leads to them.

3. Understand their terms and conditions very well. If you’re already on the stage of buying, the first thing that you have to obtain is their terms and conditions. A number of them are just like salespersons. They can offer you the sun and moon just to make sure that they can get your approval. There are a lot of things that you would like to look for in your contract, but mostly, they should always be in your favor. For example, if you have certain states in mind—like California, Florida, or Ohio—these places should be clearly identified in the contract. The kinds of leads that you will be getting must also be specified. Moreover, as much as possible, you may want to get these leads personally, so you can already take a good look at them.

4. Ask for a sample lead. You should keep in mind that not all companies will give you sample leads for the simple reason that they are not really comfortable in doing so. It may take you a while to close deals, which may then affect your buying decision. Nevertheless, it will provide you of a hint of how your chosen company works with leads and the quality of leads that they can give you.

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