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Mortgage Leads 101

A mortgage lead is the same in other industries as a referral, prospect or however you want to call it. In the mortgage industry, a referral is more commonly known as a mortgage lead. Before the Internet took off, mortgage brokers spent money marketing in their local area in an attempt to get people to do business with them. Some of the brokers paid telemarketers who would contact consumers to see if they were interested in any types of new home loan or a refinance. With the Internet usage among people in the United States, the web has become a great marketing tool. Mortgage lead companies, companies who specialize in obtaining mortgage leads have emerged.

Because of the pay-out, lead companies have sought to capture the lead generating and selling markets. Mortgage brokers also long for those mortgage leads because it could result in a loan that closes, which could result in a commission from a few thousand dollars to lose to five digits, depending on the value of the loan. The best thing is that brokers only need to cough up $20 to $40 dollars per lead. Where else can you put in $20 and could potentially earn $5,000 in commission besides in Vegas?

Buyer Beware
Before you buy mortgage leads and enter in your credit card information on a lead company's site, enter in fake info and a fake credit card number that adheres to the credit card number algorithm such as 4141 4141 4141 4141 for a Visa. If a number like that can go through, that tells you to stay away from their site because they are simply collecting credit card numbers and can use it later. I have actually been to a website that I almost gave my credit card number but the site looked kind of fishy and not too professional.

In addition, make sure there is a padlock in the lower right hard corner of your web browser. The padlock is there only if the lead company has registered for a SSL certificate. This does not automatically make the company legit, but it is one step in the right direction.

Traditional Mortgage Leads vs Internet Mortgage Leads
A lot of mortgage brokers make the mistake of treating traditionally generated mortgage leads and Internet generated mortgage leads the same way. An Internet generated mortgage loan lead usually means the consumer has did some research online, and filled out at least one form, perhaps more. The issue is that a consumer who fills out an online form probably filled out at least 2 for 3 forms. By waiting a day or two on contacting the lead, the broker will already be behind in the race to close the loan. Contact the lead right away to introduce yourself and make the consumer fill secure that he or she is dealing with a friendly person, not just a commission hungry broker.