We recently wrote about the shift in market dynamics that has given mortgage lenders a home-field advantage in generating qualified leads and how lenders can use this to strengthen their real estate referral relationships.
Long story short – most buyers are now researching online to discover if they CAN, in fact, afford to buy before falling in love with a home. In a market where interest rates are still hovering around 7%, home prices are still gradually rising, and inventory is still low for many markets, buyers want to ensure they have all of their ducks in a row. That’s why their first step is increasingly becoming contacting a lender or several lenders – before they even start talking to agents or looking at homes.
To stay on better terms than that with real estate pros, mortgage officers would be smart to use their own tools to help agents generate leads jointly (where possible, leveraging technology for scale, detail and data management), and help them lessen their dependence on commission-draining real estate platforms.
Sharing with a purpose
We believe technology offers a better path for LOs, real estate agents and buyers. Here’s how our tools offer convenience and value to borrowers and strengthen the LO’s relationships with agent partners:
- QuickQual tool is a LOS add-on that enables borrowers to run payment and closing cost scenarios based on the pre-approval/pre-qualification limits as determined by the loan officer. This pre-verification process shows borrowers how much home they can afford without committing to a mortgage credit pull, creating a powerful qualified lead for an LO to pass on to their existing real estate partners. Once the borrower is ready to begin their home search, the chosen agent can also access QuickQual to generate/update pre-approval letters instantly.
- With property appreciation continuing to rise, first-time and low-to-moderate-income homebuyers can find it especially challenging to find a home they can afford. CRA Analytics enables LOs to be a resource for these borrowers by analyzing LOS data directly to automatically identify properties located in LMI Census Tracts and eligible for special purpose credit programs. In addition, the system automatically identifies eligible listings and facilitates communication with the real estate agents listing these eligible properties so that potential buyers can be made aware of the financing options available.
- Once it’s time to apply, LiteSpeed guides borrowers through singular, auto-advancing application questions that use animated graphics and dynamic messaging to help direct them through the application. Borrowers receive confirmation emails with next steps, a secure document upload link and more from their selected loan officer – all of which helps keep borrowers engaged in the transaction and, therefore, more likely to convert
Playing the Long Game
As tough as times have been for mortgage lenders in 2022 and 2023, we think there’s opportunity ahead as interest rates cool and homebuyers feel more confident that they’ll be able to qualify for a home.
- This is the time for LOs to position themselves with buyers and referral partners as a preferred provider with the tools they’ll need to navigate the market ahead. Tools like QuickQual, LiteSpeed and CRA Analytics position LOs as trusted advisors able to move customers through their homeownership journey.
- This is the time to welcome more aspiring home buyers to your pipeline. True, they might not qualify now, but that’s no reason to be inhospitable. Make like a Zillow. Make like a Rocket. Get them inside your sphere, nurture them and when the market shifts, activate them.
This is the long game for LOs – being a trusted partner who can win business now and retain it in the future.
