Marketing Basics for Mortgage Brokers

In the old days, before the housing bubble burst, being a mortgage broker or loan officer was like having a license to print money. After all, interest rates were low, home prices were rising, and almost any homeowner could be persuaded to refinance his house.

On top of that, banks and moneylenders were particularly informal in their business practices, and virtually anyone could get a loan. Of course, everyone knows how all that worked. Today, home sales are slow at best, and even qualified buyers with good credit can have trouble getting a loan.

So how is a mortgage broker supposed to do business in this dismal market? Getting that business back means getting back to the basics of marketing and sales; networking, direct marketing and a good website.

Word of mouth is the best way to generate new business and networking is the best way to spread the word about your business. It sounds old-fashioned, but there is no substitute for the Internet to get your business card into the hands of as many people as possible.

Try to visit as many professional groups, networking parties, and seminars as you can. Don’t be shy, these events are specifically designed for making professional connections and doing business.

Another essential element of mortgage marketing is direct mail and direct email. While direct mail pieces don’t always generate new customers, they do help keep your name in front of customers you’ve already done business with and build your brand. Past customers are one of your best sources of word of mouth recommendations.

Direct email marketing is still in its infancy, it is one of the most profitable marketing tools out there. While email is cheap and effective, there are some mistakes to avoid. Be judicious with your email marketing. Your clientele will quickly become disconnected from your message if you email them too often.

And be sure to offer, keep up to date, an “unsubscribe” option for customers who don’t want to hear from you via email.

Establishing a visible web presence is a great way to complement any marketing effort. A mortgage website that provides good general information on new loans and refinancing, as well as specific information about your business, is an indispensable marketing tool.

There are deals to be done, but finding them will require much more effort than before.