5 Ways To Generate Free Mortgage Leads

The mortgage brokering business is so lucrative that many real estate agents switch their career paths after getting exposed to how brokers work.

Seldom does it happen the other way around where a mortgage broker switches profession to be come a real estate agent.

A big reason for the attractiveness of loan brokering is that less servicing time and effort is required for each customer compared to that of an agent.

Even though the income per client for borrowers is a fraction of agent fees in closing a deal, the market for borrowers is much bigger.

This also means a lesser risk of putting all your eggs into basket.

The biggest challenge of home loans brokers or even mortgage bankers is the generation of leads.

And because of the prices that lead generation companies charge for borrowers are far from cheap, the most desirable types of leads are free mortgage leads.

Before we move one, it is important that we identify the distinction between prospects and leads as they are not the same.

In a nutshell, prospects are potential customers who have had two-way communication with a representative and has shown clear indication that he is interested in the product or service in question.

Leads however, are people who have provided a method of communication (i.e. email, phone number, etc) to reach them, have not communicated to any sales representative, and might or might not be interested in a product or service.

It should be clear cut that prospects are more valuable than leads to a salesperson.

Higher quality leads would be those that have provided more contact channels and offered information of their desire to get a product or service.

In terms of home loans, a high quality lead might even indicate whether he is a homeowner who prefers adjustable rates or fixed rates, what kind of a term he is looking at, what is the required loan size, property value, etc.

Now that we have explained the difference between leads and prospects, let look at some methods to generate mortgage leads for free.

1) Facebook groups

If you have yet to get your feet wet from Facebook marketing, you shouldn’t call yourself a marketer.

There are countless groups for people to discuss and connect regarding a huge variety of topics.

And some groups consists of members who would inevitably have to look up home loans soon.

One such group is yard sales and those related to such activities.

They are so many of them in every city.

The main reason why people conduct garage sales is that they are moving. This means that they would be seeking a mortgage to finance the new house they have purchased.

Getting involved and being active in these groups can send you a flurry of home loan leads without even having to pay a cent in marketing expenses.

2) Blog

In this modern age, having a website is one of the definitive rules of success for any business.

Even though the cost of setting up a website can be very affordable if you do it yourself, there are also various blogging platforms online that allows you to set one up for free.

Just go and create one. Don’t think about how beautiful or ugly it would be. Just do it.

You would of course, be unable to compete with the big players in terms of search traffic.

But you can still post and share it around on social media.

This can sometimes be a tedious process especially if you are one of those people who don’t understand technology.

But consider that once you set it up, it would be ready to collect leads for you.

And closing one case a year from the website would already be well worth it.

3) Connect with real estate service providers

A home buyer would have to engage the services of various third party real estate service providers in order to drag a transaction over the line at closing.

These include:

• Lawyers
• Escrow services
• Insurers
• etc

Call up these service providers and offer to serve their customers regarding mortgage services.

If they are proper business, they would not turn away someone who can add value to their customers.

However, do realize that they might want a commission on cases you close.

The biggest benefit of leveraging their their networks is that they usually bring prospects instead of just leads.

4) Connect with virtual offices

You are probably not going to strike a deal to finance a virtual office.

Jokes aside. Virtual offices are usually side projects of companies operating shared-office spaces. They usually also offer services like accounting, corporate filing, tax planning, incorporation, etc.

This means that they have a customer portfolio consisting of business owners who… probably lives in a bigger house than normal.

They are usually also more financially savvy and are always on a lookout for attractive mortgages to refinance their existing loans to.

Because of their close relationships with virtual offices, they often ask for advice regarding commercial mortgages… which can ultimately also be led to home loans.

This is really a gold mine of a leads and prospects system if you play your cards right.

Contact these service providers and find a way to be their go-to-person whenever a client inquires about commercial and residential mortgages.

5) Network with bankers

Despite the availability of mortgage brokers nationwide, there is still an overwhelming volume of home buyers and home owners who prefer to directly contact a lender instead of a broker for home loans.

If you don’t know, bankers cannot or would not recommend loan applicants who get their applications declined to go to another bank.

This is a sensitive topic and I will leave this at that.

Finally, if you are someone who has high self-confidence, I highly recommend that you consider canvassing for borrowers at targeted places.

I know people who make 6-figures just from canvassing for borrowers at the right places.

I will not mention these places specifically. But think about the think about what where home buyers have to go and what they have to do in order to close.

There’s very little reason to turn down a better loan when you truly have a better deal for them.

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