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7 Ways for a Mortgage Lender to Stand Out Without Lowering Interest Rates

With today’s historically low rates, the mortgage lending industry is more competitive than ever. This makes it even harder for lenders and originators to attract members and clients and to stay ahead of competitors.

When competition is high, in many cases, the only way that most mortgage firms know how to close a deal is to offer a low rate. However, this is not only expensive, it starts a rate bidding war that puts a damper on the process.

The good news is that lowering interest rates isn’t the only way to attract new clients and to stand out. Here are seven ways to keep your company relevant in today’s highly competitive landscape.

1. Be More Than a Lender

Potential clients want a lender that they can trust to provide sound answers to their questions when they need it. Being able to predictively understand when each of your clients needs service will certainly set you apart as a lender. You can then proactively communicate with them across the right channels.

Create a process for qualifying and engaging existing and prospective clients before the mortgage application process. By providing value and insights up front, clients will feel empowered and choose to do business with you leading up to their next transaction.

2. Have a Diverse Portfolio and Personalize the Experience

No two borrowers are alike, which is why it’s so important to offer a diverse portfolio of loans that meet the needs of today’s broad spectrum of potential clients.

Mortgages aren’t a one-size-fits-all product. You need the ability to tailor your loan programs to meet the unique needs of each client. Outshine your competition by serving the underserved. It’s also important to offer more than conventional loans. Enhance your portfolio by providing:

  • VA loans
  • ARMs
  • Refinancing options

The more options that you offer, the more clients you can serve.

3. Offer Support and Guidance

We live in a world of instant gratification, which is why online lenders and loans continue to grow in popularity. But when it comes to obtaining a mortgage, many clients realize that instant gratification isn’t as important.

After all, purchasing a home is one of the biggest investments people make in their lifetime.

For first time homebuyers, the process can be confusing or overwhelming. This is why it’s important for mortgage lenders to serve as a support system every step of the way.

By being accessible during the process, and providing engaging self-serve experiences, lenders are able to give clients’s much needed peace of mind and confidence.

4. Prioritize Customer Service

Reputation is one of the most important factors when clients choose a mortgage lender. As with any other product or service, clients research or get referred to lenders before ultimately deciding which one is best. In the age of online reviews, testimonials, and word of mouth, your reputation is more important than ever.

A solid reputation starts with prioritizing customer service. How you treat and correspond with clients has a huge impact on how you’re viewed in the public eye.

While mortgage lending can get tense at times, it’s important to always deliver a real-time, customer-centric experience that best reflects the company and overall brand.

5. Get Involved in the Community

Community outreach is a great way to drive awareness to your brand while also showcasing your mortgage solutions. Local events are a great way to connect with those people who are considering buying or refinancing a home.

Clients are more likely to be comfortable working with a lender that they’ve seen out and about and doing good will. People are also more inclined to do business with a company that goes above and beyond to be active in the community.

There are endless opportunities to get involved, including:

  • Sponsoring local events
  • Attending occupational events for teachers, police, etc.
  • Hosting fundraisers

Use these events as a way to not only increase brand awareness, but to connect with those in the community. The more involved you are, the better.

6. Embrace Digital Marketing

The right digital strategy enables you to outpace your competitors. In the age when information is readily available at our fingertips, the fact is that people want personalized answers instantly. They also want to be able to find them seamlessly.

To meet this need, it’s important to provide a website that is user-friendly, intuitive, and accessible on all screen sizes. Use your website to draw in potential homebuyers while also offering the answers they’re looking for.

Website aside, a social media presence is also crucial for keeping up with modern expectations. Instagram and YouTube are all great platforms for engaging with potential customers who may be interested in buying a home.

But having a social media presence isn’t enough. Dedicate time and effort into engaging with potential clients. Create posts. Respond to comments. Answer questions. When used properly, social media can help you to stand out among the crowd.

7. Measure Outcomes

The ability to provide borrowers with the service they need, when they need it, cannot be developed overnight. Being able to measure outcomes requires discipline, the right tech stack, and the ability to test, learn, and track the client journey from start to finish.

Once your organization is in a flow of continuous learning and improvement, superpowers will begin to develop which will soon become the lifeblood of your organization. Developing a feed of real-time data routed to the right individuals in your organization will unlock real-time decision-making which will enhance the client experience, maximize profitability, and reduce costs.

Final Thoughts

With more people buying homes than ever before, now is the time to find ways to connect with those who are in need of a mortgage lender.

While competition is thick, don’t fall into the trap of lowering interest rates to attract new clients. Instead, use the seven strategies above to keep your company thriving. With the help of these strategies, you can outpace your competitors and enjoy a steady flow of new and return members and clients.