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Why the Purchase Lead is Good for Your Mortgage Business
If you are a mortgage broker, you have probably been focusing primarily on the refinancing market rather than the home purchase market since the real estate crash at the end of the last decade. However, the mortgage market has shifted from a refinance to a purchase market recently as real estate markets slowly recover and regain stability. In addition, more borrowers qualify for home buying than refinancing because nearly 30% of mortgages are underwater. The bottom line is that the purchase loan has a better chance to get approved from lenders today compared with home refinancing. Underwater mortgages are mortgages where the mortgage holder owes more than the home is worth. The mortgage is also said to be upside down.
Refinancing is nearly impossible when you have an underwater mortgage. Because of the focus of mortgage companies to sell more homes, more borrowers qualify for home buying than refinancing because nearly 30% of mortgages are underwater. Since the mortgage market has shifted from a refinance to a purchase market only recently, home purchase leads are less expensive than refinance leads. Home purchase leads are increasingly available too because more people are searching for home purchase mortgages online and responding to direct mail, TV, and radio advertising campaigns.
Internet mortgage lead companies generate thousands of leads each on the internet. These direct lead companies sell home purchase leads for $5 to $20, depending on exclusivity. Some purchase leads are sold once, or are labeled exclusive. Exclusive leads are more expensive, because you are paying for the lack of competition. As the mortgage market has shifted from a refinance to a purchase market, the competition for mortgages will become more and fiercer. Non-exclusive leads are less expensive because they are sold to multiple mortgage professionals. The quicker you start buying home purchase leads, the sooner you can take advantage of the fact that more borrowers qualify for home buying than refinancing because nearly 30% of mortgages are underwater.
In an attempt to escape financial ruin, more borrowers qualify for home buying than refinancing because nearly 30% of mortgages are underwater. Investing in home purchase leads is especially wise right now as the mortgage market has shifted from a refinance to a purchase market. Before other mortgage professionals start shifting their lead budget money to home purchases from refinances, you can get a jump on the market shift and beat out the competition. As the demand for home purchase leads increases, the prices will probably increase too. An immediate decision to pursue home purchase leads can save you money and yield many great quality leads.
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