Home Purchase Leads Rising in Popularity
More and more mortgage professionals have shifted their lending niche from refinance to purchase mortgages. Therefore many loan companies have shifted their focus to home purchase leads as more and more home buyers are eligible for a low rate mortgage. Getting approved for a purchase loan is much more likely than an existing homeowner getting approved for a home refinance.
Why Mortgage Companies Should be Buying Home Purchase Leads
Over the past five to seven years, the mortgage business has been primarily focused on refinancing products as the real estate market struggled to overcome economic uncertainty and a bad reputation from the subprime crash. However, now the mortgage market is shifting from a refinance to a purchase market. Home purchase leads and FHA leads can boost a mortgage companies business with a relatively low cash outlay. Purchase leads are cheaper than refinance leads; the cost of purchase leads ranges from $5 to $20 depending on upon exclusivity and filters. Refinance leads typically cost between $20 and $30.
Demand is the main reason the cost of purchase leads ranges from $5 to $20 depending upon exclusivity and filters. Because the market has been so refinance driven, the prices for purchase leads and FHA leads is consistently low. However, now that the mortgage market is shifting from a refinance to a purchase market, the fact that purchase leads are cheaper than refinance leads may flip-flop. Mortgage brokers should take advantage of the upswing in business before demand pushes up the prices of home purchase leads. Home purchase mortgage activity continues to soar after the Federal Reserve committed to keep rates low for the next 2 years.
The occurrence of FHA mortgage usage has grown over twenty percent in recent years, even as the mortgage market is shifting from a refinance to a purchase market. For finding and getting the business of all those potential clients, it is wise for mortgage companies to invest in FHA leads. Since purchase leads are cheaper than refinance leads, this investment is minimal, especially when compared to the cost per conversion of leads generated through direct mail or radio advertising. If the lead is good and the return policy on bogus leads is good, the cost of purchase leads ranges from $5 to $20 depending on exclusivity and filters can offer an enormous return on investment.
Internet generated home purchase leads and FHA leads are the most cost effective, where the cost of purchase leads ranges from $5 to $20 depending upon exclusivity and filters. Mortgage brokers and lending companies who lag behind as the mortgage market is shifting from a refinance to a purchase market may find themselves cut out of quite a bit of business by those who take advantage of the fact that purchase leads are cheaper than refinance leads right now. Why would you choose to miss out on all that potential business when you can find quality lead generating company websites around every virtual corner?