The housing market has fallen noticeably in the last year, and just about every lender has felt the pinch. But how do some mortgage brokers thrive even in a consolidated market, while so many others go quietly under? The answer is quality mortgage leads: most of the mortgage brokers who continue to thrive have found a reliable source for new business leads.

Mortgage leads are provided by a third party, a business that specializes in gathering information on potential borrowers and selling that information to mortgage brokers. Most everyone has heard of LowerMyBills.com and LendingTree.com, services that promote themselves to consumers as a place to find competitive loan and refinance rates. These businesses are classic lead generation companies. Anytime a consumer fills out their online forms, they sell that information to a handful of mortgage brokers, who then follow up with the consumer.

Purchasing mortgage leads can provide a steady stream of business for mortgage brokers. Not all leads are created equal, however. In order to ensure the leads you purchase will be worth your time and money, it is important to understand a few things about how they are generated and sold.

Online Forms Versus Telemarketing

Most mortgage lead generation companies gather their leads in one of two ways, via the Internet or the phone. Online forms are convenient and low-pressure for potential borrowers to fill out, which means lead generation companies who use them are able to generate more forms than they would otherwise. However, these same reasons make leads acquired by this method less desirable for mortgage brokers. Online forms require less commitment from users, making leads gathered in this manner less likely to provide a successful sale.

Although telemarketing is often viewed as an outdated form of marketing, a personal phone call has the ability to do what an online form cannot. Telemarketing weeds out noncommittal borrowers in favor of those who are more likely to follow through with the sale. Therefore, while leads gathered via telemarketing can be more expensive than those gathered online, the former also offers a much higher success rate. In the long run, this should save you considerable time and money.

Exclusive, Shared, and Non-Exclusive Leads

Mortgage leads are sold in several different ways. Shared and non-exclusive leads are sold to more than one mortgage broker, encouraging competition between them. The down side of this is that the lead you pay for will not necessarily bring you more business, as you may lose to a broker who contacts the borrow first or offers a lower rate.

If you are purchasing truly exclusive mortgage leads, that means that you are the only broker who receives the information for each lead. Although exclusive leads are more expensive, they also are more likely to bring you a sale, as you will not have to compete with other brokers over the same lead.

The housing market may not be booming any longer, but that doesn't mean that mortgage brokers are doomed. Many borrowers are interested in refinancing their homes, and lead generation services can help mortgage brokers make contact with them. When played the right way, mortgage leads provide an excellent source of new customers.