How to Help Your Mortgage Broker Business Succeed
There are thousands of mortgage brokers in the United States, each trying to welcome new clients on board and help them purchase their dream homes.
You might believe your skill set is enough to make customer inquiries flow in by the dozen, but that’s rarely the case.
Mortgage brokers face stiff competition, and success is not guaranteed even when the property market is hot. However, you might put your business in a better position to stand out from the crowd and prosper when you take some of the following actions.
Invest Heavily In Marketing
You might not think that mortgage marketing is something you need to do when houses are selling quickly in your area. If buyers need home loans, they’ll come to you, and you’ll make money. However, buyers can’t rely on your services if they don’t know you exist, which is where marketing comes in.
Mortgage marketing involves creating and executing a marketing strategy to promote your business, inform potential buyers, and educate the general public about why they should choose you over your competition. You can utilize many different avenues, such as social media marketing, setting up a Google Business profile, and developing a standout website.
Create a Point of Difference
With thousands of people and businesses offering the same services as you, there are never any guarantees that your business will be the one people choose. However, if you were to create a point of difference, you might increase your chances of keeping up with your competition and attracting more interest.
Think about what other brokers can’t and don’t offer and consider offering it to enhance your business. For example, if other brokers require clients to meet them at their offices, you might provide a 100% online service or visit the client’s home for their convenience.
Don’t Charge Fees
Homebuyers are already facing incredible costs when they start shopping for real estate. Not only do they have to pay a property’s listing price, but they also have to cover lawyer fees and other closing costs. You might help your business stand out by establishing yourself as a fee-free mortgage broker.
It has been a standard practice for brokers to make most of their money through procuration fees, also known as ‘proc fees.’ These fees consist of a percentage of the loan amount, typically between 0.3% and 0.6%, and are provided to the broker by the lender.
However, some brokers also charge a commission fee, a flat fee, or an hourly rate to help their clients secure the best loan agreement. If you’re trying to win clients and bolster your business, consider reducing or eliminating some of your brokerage fees.
Nurture Your Relationships
When you help a client secure a mortgage to purchase their dream home, you might think that’s the end of the relationship. However, it doesn’t have to be. People buy additional houses, upgrade, downsize, and perform many real estate transactions over their lifetime. Nurture your client relationships, and you might enjoy repeat business with minimal effort.
Success isn’t guaranteed in the real estate industry, even when the property market is at its peak. Potentially improve your chances of welcoming new clients and establishing yourself as an authority by taking some of the actions above.