Lenders, like other business types, need a steady flow of customers in order to grow and thrive. A popular form or marketing for lenders involves buying leads from mortgage lead vendors and then calling or emailing these individuals to present their offer. But where do these leads come from?
Mortgage lead vendors use a variety of techniques to generate leads which they then sell to lenders. For example, if you’ve ever been to a home show and have been enticed to enter a contest to win a fabulous prize by filling out a card with your name, phone number, and home ownership details, you’ve likely experienced one common form of mortgage lead generation firsthand. While someone will be the lucky winner, the remaining entries will become leads. Their contact information will be entered into a database and sold to marketers such as lenders.
The Internet has modernized mortgage lead generation, making the old contest routine seem quaint in comparison. Today, many vendors use banner advertisements targeting would-be borrowers. Interested borrowers then click these ads and are taken to a website where they can view current interest rates, use online mortgage calculators, and learn more about their lending and refinancing options. From there, they’ll be prompted to get a quote or compare rates from competitive lenders. In order to do this, they must first enter their contact information such as name, phone number, property type, location, loan type, desired loan pricing, and so on. (Source: Loan Pricing By NYLX)
By entering their contact information and mortgage requirements data, these would-be borrowers have registered themselves into a mortgage lead database. Their information will then be sold to lenders, often in real time. An advantage of this type of mortgage lead generation over contests is that these leads are genuinely interested in finding out more about mortgages whereas contest-generated leads are primarily interested in winning a prize. (Source: http://www.nylx.com)