These days, many individuals are bombarded by the same types of financial offers, pre-qualifying forms and rates and fees from lenders. There is often little difference between lenders, and potential borrowers know it. In mortgage marketing, lenders need new angles and options to break through to borrowers and really stand out among the competition. Here are some tips on how to do that and attract new borrowers.
How to Get More Business
One of the best ways to appeal to new customers is by offering ScoreMaster as an initial step during the loan process to find out how many more credit score points the potential buyer can get to obtain a better deal. With just a little work, the borrower will find out how to save a considerable amount of money over the life of the loan by achieving the best credit score.
ScoreMaster is particularly useful for online lenders, as your site can simply link to it, giving borrowers the opportunity to determine how to go about achieving a better credit score. It’s a tool borrowers appreciate, and it boosts your business.
More Digital Tools
The more digital tools offered, the more new borrowers you will attract. Add e-signature to your documents to speed up the borrowing and closing process. The use of underwriting technology reduces the wait times for credit decisions. Long wait times create borrower dissatisfaction.
Consider offering a completely digital loan origination. The easier the lender makes borrowing, the greater the appeal to the consumer.
Encouraging borrowers to prepay their mortgage loans sounds counterintuitive, as the lender makes less overall than if the borrower sticks to a monthly payment over the life of the loan. Some lenders penalize prepayment with extra fees. However, borrowers like the idea of paying down their mortgage more quickly when the money is available. They could end up taking years off their loan’s life.
Faster loan repayment, when the borrower is flush from a raise, large tax refund or some other windfall, means the loan is less likely to default. It also increases the customer’s trust in the institution, and that means the borrower will take advantage of other services offered and recommend the lender to friends and family.
As a lender, you now have a borrower to whom you can offer a more competitive rate, since they make it clear they are eager to pay down their loan. It’s a win-win situation.
Attracting Borrowers Who Would Turn Elsewhere
Using ScoreMaster may allow you to qualify customers who would otherwise have to turn to hard money lenders. Such lenders are generally companies — not banks — and primarily serve the construction industry. Their clients usually turn to the equivalent of short-term bridge loans, secured by their properties, when their credit scores do not permit them to qualify for conventional financing.
Down payments and interest rates are higher for these borrowers and — should default occur — the lender owns the property.
These customers would rather receive a loan from a conventional lender, as it frees up down payment funds, provides them with lower interest rates and reduces the threat of default. In just 20 calendar days, they can receive their best credit score, based on spending and paying back revolving debt.
If you want to attract new borrowers and increase your loan portfolio, contact ScoreMaster today. Trust that we are always in the forefront of the most accurate and reliable data. Integrating ScoreMaster into your business permits you to secure the best loans possible for borrowers while giving them a better understanding of their credit fundamentals. Lenders offering our gamified system see increases in better loans and the number of people who can qualify for loans.
*Legal Disclaimer – ScoreMaster is a patent-pending educational feature simulating credit utilization’s effect on credit scores via payments or spending. Your results may vary and are not guaranteed.