Independent mortgage brokers are always in need of ways to differentiate from the competition and increase your approval ratings. In the words of Lisa Warren, President of LW Financial Services, as an independent mortgage broker, you have one mission:
“….find the best lending product and lending institution that fits the need of the borrower with the most favorable terms, with complete transparency of the fees charged and income made to produce that loan.”
You grind day in and day out to match each buyer with the best lender, pouring your blood, sweat, and tears into managing the process from start to finish to get that loan approved. It can often feel like a marathon AND a sprint, right?
Since you’ve got the “work hard” part down, let’s take a look at the “work smart” part to ensure you’re using the right mortgage marketing tools to increase your approval rate and maximize your ROI with your clients.
Consider these five things you can do as a mortgage broker to increase your approval rate.
1. Do Market Research to Proactively Identify the Most Qualified Potential Leads
This might seem like a no brainer, but to be a successful mortgage broker, you have to do more than just a few Google searches to see what’s happening in the market.
You need to make a long-term commitment to keeping a constant eye on what’s happening in surrounding geographies through conducting internet research, attending local industry events, developing relationships with lenders, and more so you can attract qualified leads.
On a daily basis, this means regularly asking yourself these questions:
- Where are realtors selling the highest-priced homes? What has changed?
- Is the city set to develop any areas of town that will attract buyers? If so, when?
- Who in your network would be interested in new real estate developments?
If you’re plugged into what’s going on in nearby and surrounding markets through a variety of online and offline channels, you can target your marketing campaigns to promote these new developments to potential buyers who are likely to get approved. By focusing your mortgage loan advertisements on up and coming areas with high demand, you’re more likely to land clients who are motivated and ready to secure a mortgage loan.
2. Invest in Smart Mortgage Marketing Tools to Expand Your Reach
In addition to keeping your finger on the pulse of what’s happening in the real-estate world around you, another way to land qualified buyers and increase your loan approval rate is to use the right blend of online mortgage marketing tools.
Beyond creating your website to advertise your services as a mortgage broker, invest dollars in targeted mortgage website marketing campaigns to drive highly qualified traffic.
- Create a custom ad campaign using Google AdWords that’s targeted at people searching for home loans
- Tap into the power of video marketing to appeal to potential clients who consume video content online; in fact, adding a video to a web page can increase conversion by up to 80% (translation: they’ll call you or email you after watching!)
- Start a blog that answers common questions prospective buyers ask to demonstrate your industry expertise and drive organic search traffic
Utilize these online marketing tools to work smarter, not harder, to attract clients who are ready to buy.
3. Consider Relocating to a State with the Best Opportunities for Mortgage Brokers
In addition to working smarter by using the best available tools, to increase your approval rate you need to be open to change. While America is known as “the land of opportunity”, there are specific states that pay more than others.
Consider looking into growing your brokerage business in one of the ten highest-paying states. The people who live in these states have money to spend on real estate and many of them will need help securing a mortgage loan:
- New Hampshire
- Washington, D.C.
- New Jersey
Setting up roots in a state where income is high could set you up for success - if you’re willing to take the leap.
4. Try to Anticipate Hiccups BEFORE They Occur by Knowing Your Client
Another crucial aspect of running a successful mortgage broker business with high loan approval rates: think about potential roadblocks ahead of time and plan for them.
Is your prospective buyer very detail oriented and organized, or does he or she require more hand-holding? In the latter case, spend extra time ensuring your client's paperwork is ready. This will help eliminate delays that could prevent a loan from being approved.
Robin Gilmore, President of America's Local Lender offers advice on how to become licensed as an independent mortgage broker that can be directly applied to how you work with clients:
“....identify the tasks that you’ll need help with as early in the process as possible. This will help cut down on time spent trying to self-service something that’s outside of your skill set.”
It’s all about the prep to ensure your client has the best chance of getting his or her loan approved.
5. Expand Your Menu of Services: Help Your Clients Rebuild Their Credit
To put prospective home buyers in the best position possible to get their loans approved, most mortgage brokers often refer clients to a third party business to help them repair their credit.
But when you do this, you’re actually missing out on an opportunity to help your client yourself.
If you help your client rebuild his or her credit - instead of someone else - you’ve not only helped your client potentially get a loan, but you’ve also widened your menu of services as an independent mortgage broker. You will have tapped into a brand new mortgage marketing system by offering your clients more than you did before. This will differentiate you from other mortgage brokers in your area, boost the number of referrals you receive, and help to increase your revenue.
So why send your customers to a third party when you can help them rebuild their credit yourself? Help customers that come through your door deal with their credit issues so you can close far more loans.
If you really want to stand apart from the rest of the businesses tapping into the same client pool that you are, try offering prospective clients an additional, value-add service that your competitor doesn’t, then see what happens.
Learn more about how credit repair can help you close more mortgage loans >