The Internet has revolutionized the way consumers shop. Enter a search for any product or service, like “online mortgage leads”, into any search engine and you’ll find millions of results. So how do differentiate between the hundreds of online mortgage leads companies out there? That’s what this article aims to answer.

Every day thousands of homeowners fill out forms on vast networks of mortgage lead generation websites with an interest in finding more information on home mortgage loans or requesting quotes from mortgage lenders. This information is then organized and distributed by online mortgage lead companies such as NR Leads. The nature of the Internet allows nationwide competition. Hundreds of mortgage lead brokers and lead generation companies are competing for the business of lenders or brokers such as yourselves.

In our mortgage leads purchasing guide, we aim to explore four fundamental issues any mortgage broker or loan officer should consider:

1. What do I look for in high quality internet mortgage leads?
2. What are reasonable expectations of an internet mortgage lead company?
3. What are the best ways to close these internet mortgage leads?
4. Questions to ask and things to look for in any mortgage broker

1. What do I look for in high quality internet mortgage leads?

Determining quality leads is like running a fast-food restaurant. You want freshness, speed, and accuracy in your orders to best satisfy your customers - or in this case, home owners.

High quality mortgage leads are fresh

Food fresh off the grill is always better than something that’s been sitting the fridge for a few days. When considering the quality of a mortgage lead, you need to know exactly how long ago they were generated. The best option for fresh leads is real-time leads, where the lead is delivered instantly right after someone has completed filling out a form online. Some lenders have different tastes and budgets in mortgage leads, and opt to go with slightly aged data. At the minimum, you want mortgage leads to be no older than 48 hours (NR Leads offers these in the form of batch leads).

The more time that passes between filling out the form and receiving a call, the less likely the lead is to close. The case often arises where clients even deny filling out a form because they’ve simply forgotten about it by the time a lender gets back to them. So long story short, get it while it’s hot.

High quality mortgage leads are accurate

Mortgage lead companies invest most of their budget into generating quality leads that are accurate. Leaps and bounds have been made in obtaining accurate information from homeowners, but no company can completely stop users from entering inaccurate or fraudulent data. NR Leads compares borrower entered information against a database to make sure data is accurate. Zip codes match cities, no “555″ numbers, no fictional names (Apparently Mickey Mouse owns a home in 46 states).

Better yet, avoid the hassle and consider call verified leads (also known as telemarketing leads) for guaranteed contact info. The best leads possible are live transfers, where the lead company actually calls the client, verifies all of their information and interest the mortgage, then transfers the call directly to the lender for them to close. (NR Leads offers call verified and live transfers as well).

The lead is actually a real lead

What’s a real lead? A lead generated by someone who has a real interest in obtaining a mortgage. Be sure to avoid “incentivized leads” such as offers for a free iPod or gift certificate for filling out a form. These leads are absolutely worthless. Mortgage leads should be generated from borrowers who voluntarily enter their information.

2. What are reasonable expectations of an internet mortgage lead company?

Closing Rates

Lead brokers are just that - lead brokers. Just like any kind of sales leads, you can’t expect all of them to close. Close rates of 8% to 14% are common, and go as high as 20%. Expect a better close rates on live transfers.

Direct Contact with your Account Executive

You’re busy. You don’t have time to punch through phone menus and listen to music while on hold. Look for a mortgage leads company that offers a direct line to your account representative for the fastest service possible. A few minutes could be the difference between closing and losing that big loan.

Generous Lead Returns and Crediting

You’re bound to run into a few bad leads. Expect your lead company to accept returns for legitimate reasons like bad phone number or disconnects, and credit you appropriately.

3. What are the best ways to close these internet mortgage leads?

This is a very simple concept. The faster you contact the lead, the better your chances of the closing the lead. After you make contact, find out exactly what they’re looking for and offer them your best quote. Remember that you may be competing with a handful of other lenders. Follow up as quick as you can and answer any questions or objections your lead has. It all comes down to speed.

4. Questions to ask and things to look for in any mortgage broker

Internet seals of approval

The Internet is full of misleading websites and con-artists. Look for widely used seals of approval and associations on their home page:

National Association of Mortgage Brokers
Better Business Bureau
Dun & Bradstreet Verified

How many times are your leads sold?

When purchasing leads, make sure your lead company isn’t overselling leads they generate. The best leads are exclusive, where you are the only person bidding on the potential mortgage. However, there is nothing to stop borrowers from filling out forms on other websites for the same mortgage. Semi-exclusive leads are more common, where leads are sold to only a handful of brokers.

How are the leads delivered?

Find out what format your mortgage leads are delivered in. The best companies can accommodate any format that you’re most comfortable with. Choices include email as an Adobe Acrobat file or on an excel sheet, as a text file, or viewable through their website.

How do you generate your leads?

Find out exactly how your leads company is generating their Internet mortgage leads. Make sure there is absolutely no incentivizing.