How Technology is Influencing New Purchase Mortgage Strategies

purchase mortgage
Lenders leveraging technology are finding new ways to gain a competitive advantage.
The latest weekly survey from MBA reports the unadjusted Purchase Index increased by five percent and is three percent higher than the same week last year. With mortgage applications for home purchase on the rise, refinance applications continue to decrease—recently hitting their lowest point since September 2008.
 
Lenders are preparing to compete for their share of the purchase mortgage market and technology is playing an integral role in their strategy. As technology investments continue to grow, lender pain points are evolving and creative, new approaches to solve challenges are surfacing.
 
The Lender’s Guide to the Purchase Galaxy features the latest advice from industry experts—including Dale Vermillion (President and CEO, Vermillion Consulting and Mortgage Champions), Garth Graham (Senior Partner, STRATMOR Group), Will McDermott (Editor, Scotsman Guide Media), and more! Learn specific tips on how to gain a competitive advantage and close more loans in today’s market. Their insight provides more detail into how lenders can compete in the purchase mortgage market by building on these four strategies:

Technology increases speed, but…

Borrowers need more guidance as they make the biggest decision of their life. There’s no doubt that they are going to have questions beyond pricing and the details of your offering. Their questions and concerns need to be addressed immediately to ease hesitations. Even better if your loan officers can anticipate needs and take a more proactive approach to keep borrowers engaged and moving through the funnel. The idea is to deliver a full-service experience that reduces abandon rates and creates lifelong customers.

Technology increases communication touch points, but…

Lenders need to consider the influence of each touch point on the purchase journey. Don’t just communicate to communicate. With so many businesses fighting for the attention of prospective borrowers, stand out by creating communication that really speaks to each individual lead and where they are on their purchase journey.

Start with developing specific profiles for each purchase mortgage lead and build your communication strategy around that. Understand the needs of each stage, from pre-approval through post-close, so that you can stay ahead of the curve and offset any surprises that might cause distress. See how to factor timing, messaging, and conversion cycles into email and phone outreach in the Lender’s Guide.

Technology increases outbound and referral success, but…

Generating inbound leads should not be overlooked. The age of inbound has taken over many industries and the world of finance and mortgage is no exception. Customers are looking online to find who they want to do business with. Develop a strong online presence to boost your brand’s reputation. Align public-facing messages with internal business processes to deliver the optimal customer experience. The consistency that comes with internal and external alignment strengthens your brand and is an effective way to generate organic interest.

Technology streamlines business processes, but…

Relationship unification is still critical for purchase mortgage success. Leverage business process gains from technology to create partnerships that generate repeat business. As the purchase mortgage market landscape continues to shift, the value of developing strong relationships increases. All stakeholders within a transaction—lender, loan officer, real estate agent, referral sources, and more—should be seen as partners working together for the customer. Each successful transaction strengthens the referral network for each stakeholder.

For details on how you can bring the practices into your organization to drive purchase mortgage business, check out tips from industry experts in The Lender’s Guide to the Purchase Galaxy.


Chris BackeAbout the author: Chris Backe is the director of financial services at Velocify, and a sales automation expert with more than 20 years of experience offering technology solutions to multiple industries. Chris has spent the last 10 years in the financial services industry, holding various positions at industry leading technology companies including Ellie Mae and Salesforce. He can be reached at cbacke@velocify.com.

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