01.22.2024 PropStream
As average mortgage rates settle around 6-7%, the number of weekly mortgage applications (and refinancing applications especially) has tanked. Why? Because many borrowers already locked in record-low rates of 2-3% back in 2020 and 2021. Additionally, many first-time buyers hesitate to get new mortgages when rates are four percentage points higher than what they were just two years ago.
For mortgage loan officers, these trends can be troubling. Fewer mortgage applications mean less business. To make matters worse, the U.S. is experiencing a housing shortage, keeping many potential mortgage applicants from finding a house to buy in the first place.
Consequently, it’s more important than ever for mortgage loan officers to win customers by standing out from the competition. So here are five ways to grow your mortgage business in 2023:
- Develop a Niche
- Build a Strong Online Presence
- Share Mortgage Advice and Insights
- Network with Other Real Estate Professionals
- Provide Excellent Customer Service
- Use Real Estate Data To Find Leads
1. Develop a Niche
First, position yourself as an expert in a niche segment of the mortgage market. For some mortgage loan officers, this may sound daunting. Maybe you don’t feel like an expert in anything particular, or fear you’ll miss out on potential customers by limiting yourself to a niche. However, the truth is that specializing can actually help you bring in more—not less—business. Here’s how:
When you focus on a particular market segment, you can tailor your messaging to a specific target audience. This can be extremely powerful because consumers tend to be drawn to messaging that speaks directly to them.
For example, a disabled veteran living in Montana who wants to downsize to a smaller home with a USDA loan is much more likely to work with a mortgage loan officer who specializes in Montana USDA loans for veterans. Why? Because they can expect to get exactly what they need, whereas a generalist may not offer the same level of expertise.
There are three main ways to narrow down your niche: geography, client type, and product. Most mortgage loan officers already have a geographic niche by virtue of where they are licensed to work. You can also focus your business on a particular type of client, such as first-time homebuyers, retirees, single moms, veterans, etc. Finally, you can specialize in a particular mortgage product, such as FHA loans, USDA loans, or refinance loans.
Though your niche may limit the type of customer you attract, it may help increase the total number of customers you attract. Plus, you can always have multiple niches, such as FHA loans for first-time homebuyers and refinance loans for retirees.
2. Build a Strong Online Presence
For mortgage loan officers, the internet can be a blessing and a curse. On the one hand, it allows you to reach a nearly unlimited number of potential customers. On the other hand, it forces you to compete with all the other lenders trying to do the same thing. Consequently, it’s important to have a strong online presence.
Start by creating your own business website. Don’t rely on the site of the lending company you work for. Get your own so you can start building a personal brand. Your site should include a brief explanation of what you do, positive reviews from past customers, and your contact information with a strong call to action (CTA).
You may also want to consider creating a Google My Business (GMB) page. This will help your business show up in local searches for mortgage services on Google and Google Maps. Try to amass as many positive Google reviews as possible to improve your GMB’s page search ranking.
Next, clean up your social media profiles. Delete any photos or posts that may negatively reflect your business. Then use your social media to get the word out about your mortgage services. Engage with other users by liking, sharing, and commenting on their posts. When used right, social media can be a powerful marketing tool.
As you create a cohesive brand image, you’ll begin to stick out in people’s minds so that the next time they need a mortgage, they may think of you first.
3. Share Free Mortgage Advice and Insights
In marketing, there’s a concept called “give, give, give, then ask.” It means providing value upfront and only pitching your services once you’ve earned your audience’s trust. As a mortgage loan officer, you can use this strategy to win more clients.
For example, share your insights on the latest mortgage trends on social media. Over time, your audience may come to think of you as an expert and thought leader. Then they’ll be more likely to reach out to you when they need a mortgage. The key is to provide real value without asking for anything in return. Every now and then you can plug your mortgage services as an afterthought.
Other ways to share your expertise include writing blog articles or contributing to other online publications (aka guest posting). Creating quality content not only positions you as an expert but helps improve your website’s SEO (search engine optimization), which can drive organic traffic to your site.
Videos are another great tool for connecting with your audience. These days, 72% of consumers prefer videos over text to learn about products and services. You can use this to your advantage by creating compelling videos about mortgage topics. To optimize them for social media, record them vertically and include video captions.
Lastly, be personal. People don’t connect with mortgage companies; they connect with other people. So if you can let your personality show while sharing valuable mortgage advice, your audience is more likely to relate to you and therefore trust you.
4. Network with Other Real Estate Professionals
As a mortgage loan officer, your target customers may overlap with those of other real estate professionals. So it’s a good idea to network with others in the industry.
For example, in 2022, 86% of homebuyers used an agent. That means real estate agents could be a great source of homebuyer leads. Similarly, you can refer your clients to agents. By creating mutually beneficial partnerships with other real estate professionals, you can help each other’s businesses grow.
Adopt a multichannel approach to networking. Try going to local trade shows, open houses, conferences, and Real Estate Investors Association (REIA) events. Join online real estate groups, too. Some host virtual educational webinars and lunch-and-learn sessions where you can further your education while meeting others.
Above all, focus on building genuine relationships. You’re more likely to make valuable connections if you show sincere interest in others and not just what they can do for you.
5. Provide Excellent Customer Service
Growing your mortgage business isn’t just about gaining new customers. It’s also about retaining old ones. And one way to do this is by providing excellent customer service.
Of course, most borrowers don’t get a new mortgage very often. The median duration of homeownership in the U.S. is 13 years. But that doesn’t mean you can’t build a large database of leads and repeat customers that can generate steady business. The key is to keep in touch with your contacts and continue serving them.
For example, you could run an email campaign, in which you send contacts a sequence of pre-written emails (aka a drip campaign). You can also segment your email list into different groups, such as prospective customers and past customers, so that you can make your emails more personal and relevant to them.
To stay organized, consider investing in customer relationship management (CRM) software. It can serve as a central place for all your customer contacts and communications. Additionally, it can help you track your email campaign performances so you can double down on what’s most effective.
If you prioritize customer service, your customers are more likely to become repeat customers and refer you to their friends and family, which can lead to more and more business.
6. Leverage Real Estate Data To Find Leads
Finally, use real estate data to find leads. PropStream lets you filter properties by various mortgage and interest rate data, such as loan type, total estimated monthly payment, estimated interest rate, and interest rate type—all of which can help you narrow down potential customers in your niche.
For example, you can set a filter to show only properties with an estimated loan interest rate above 8%. If current mortgage rates are under that, these homeowners may make good candidates for refinancing, and you can skip trace their contact information and reach out to them to offer your mortgage services.
Though mortgage activity has slowed down, it’s far from dead. Mortgage loan officers who implement the above tips could make 2023 their best year yet!
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