Lead Generation Tips for Mortgage Brokers

Mortgage professionals have a lot of competition for the customers they hope to someday serve. There are banks, sites like Lending Tree and Quicken Loans and many thousands of mortgage companies all competing to generate leads that the professionals there hope will someday turn into borrowers. This is why it is not only important for mortgage brokers to have the knowledge they receive from our online mortgage broker school, they must also know how to create leads in the first place. After all, without leads there can be no customers or business.

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Some mortgage brokers can become pretty desperate to generate leads so much so that some of them resort to buying them from online lead generation sites. However, there are other more reliable ways to generate leads. With nothing more than a little hard work, creativity and persistence mortgage brokers can increase their chances of finding borrowers. Here are some lead generation methods that do not involve buying leads.

  • Network with Real Estate Agents: Real estate attorneys, relocations specialists and family law attorneys are all excellent sources that can lead prospects directly to you.
  • Use Referrals: Ask satisfied past clients if they can refer you to several of their friends. Clients who are satisfied with your services are usually only too happy to oblige you.
  • Advertise: Design your personal website and blog with the intent of appealing to the public and explaining to them why you should be their broker. You can also supplement your web presence and generate traffic by using tools such as forums, email marketing, pay-per-click ads and banners.
  • Use social media: According to marketing experts, more than 70% of all B2C marketers acquire leads through Facebook, 40% through Twitter and 65% via LinkedIn. Any business owner who does not use social media to help generate leads is at an extreme disadvantage over others.
  • Attend trade shows: Set up a booth at a trade show (e.g., home improvement tradeshow) and target your marketing. Pass out brochures, business cards, flyers, etc to attendees.
  • Write and distribute articles: Write articles for use on real estate blogs, magazines, etc. Every site owner on the web is a glutton for engaging and informative content.
  • Use multiple listing services (MLS): Among other things MLS is a database of properties for sale that are listed by real estate agents. You can generate prospects by contacting the realtors listed on it. You can also contact sellers with it although you should ask the realtors in the database before doing so.

Finally, customers are at the heart of any business. Without them the business dies. At our online broker school we want you to have every chance to succeed so we’ve provided you with the above tips and we provide you with a superior education.

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The Advantages of Using a Mortgage Broker over Using a Bank

People who are considering buying a home have many decisions to make such as where they wish to live, how much they wish to pay monthly, etc.  One of the first and most important decisions to make once a choice in home has been selected is whether to use a bank or a mortgage broker.  To be sure using a bank has its advantages but people who go it alone are often left to their own devices when it comes to navigating the complicated and time consuming issues involved in comparing rates and terms.  Specifically, many people – particularly first time buyers – find it difficult under these circumstances to compare mortgage products options and decipher financial jargon well enough to make the best choice.  This is why using a mortgage broker over a bank has its distinct advantages and why skilled mortgage brokers are always in great demand.  This is the service that our online broker school offers potential trainees and the public.  Specific advantages to using a broker over a bank include:

  • Expert Advice: It is the job of a broker to follow trends in interest rates and housing which makes then able to offer the public the best mortgage products.  Their knowledge can help home owners save money and take advantage of discounts and deals that they may qualify for.

 

  • Broker services save time: A broker helps potential borrowers save time during the home buying process.
  • Extra Services: Mortgage brokers not only help borrowers find advantageous mortgages, most also offer additional services such as credit repair counseling.  Many others will help guide home buyers through the escrow process.
  • Greater choice of lenders: With a good mortgage broker, borrowers have greater access to the number of lenders that are available.  This gives borrowers greater access to special programs, wholesale pricing, etc.
  • Established connections: An established broker will have a network of links, contacts and special relationships that his/her client can take advantage of during the application process.  This will help him/her in finding lenders that cater to each client’s specific needs.

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Finally, all of these advantages help people who are considering buying a home focus on the other issues involved in this life changing decision.  That is the value that our online mortgage broker school gives to home buyers and to people who wish to help borrowers get off to the right start when purchasing a new home.  With a mortgage broker people do not have to go it alone.

Legal Problems Mortgage Brokers May Face and How to Avoid Them

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We all know how litigation crazed our country has become in the last several decades.  This is especially the case with the general public suing professionals in fields such as medicine, construction and of course real estate.  mortgage-brokerThis is why it is essential for people who desire to become a mortgage broker to receive a well rounded education from a mortgage broker school.  By doing so future mortgage brokers can better service future clients and at the same time protect themselves from legal liabilities.  Here are a few of the legal traps mortgage brokers can encounter and some tips on avoiding them.

Misrepresentation:  This is the most common kind of the lawsuit brought against brokers.  Misrepresentations come in three types: innocent, negligent, and fraudulent and include problems clients find with a house’s foundation and structural integrity as well as other features.  Other common accusations related to charges of misrepresentation include renovating without a permit, environmental and title problems.  To help avoid this charge use seller disclosure forms and do not speak in absolutes or guarantees when discusses a property.  Mortgage brokers should also consider purchasing errors & omissions (E&O) insurance.

Fair housing violations:  Although fair housing violations account for a relatively small amount of litigation, the laws in this area are complex and judgments can be quite high.  Avoid being charged with these kinds of violation by refusing to do business with clients who desire to discriminate against particular groups.  Also, train and take mortgage broker classes in order to learn the fair housing laws.

False advertising:  These lawsuits commonly include things such as affinity programs, “For Sale” signs and Internet advertising.  Make sure that all the advertising you do on a property complies with state license law as well as the REALTOR® Code of Ethics Licensee laws.  Also include accurate photos and descriptions with every ad related to the property you are trying to sell.

Environmental issues:  Be aware of common environmental issues involved in selling a property such as asbestos content, lead paint levels and ground water contamination.  Not knowing about these issues can come back to bite you in the form of litigation.  Again, know and take classes that educate you on these issues and how they affect you as a mortgage broker.

Unfortunately, lawsuits are not uncommon in this profession however with proper education and training you can minimize the chances that you will be a defendant in court.  Having the proper training and education ensures that your clients and the general public will be well served and that you can enjoy a lucrative career that is relatively hassle free.