The Financial Crisis of 2008 was a nightmare for the American housing market. The demand for new homes fell considerably; there was low demand for existing homes. Families watched the equity in their homes drop, if not vanish completely. It was a devastating mess for property owners and builders.
But the American housing market has come a long way since then. As the economy continues to recover, more residents are recovering their real estate confidence. Spending on construction projects increased 0.9 percent in November 2020 while spending on residential construction rose to 2.7 percent. As a result, record-low mortgages resulted in an increased demand for homes.
Since more people are confident to buy homes, now is the best time to market your loans – and your competitors are realizing that, too. Whether you’re a broker specializing in business loans or alicensed broker for home loans, you need a great strategy to rake in more clients while keeping your current clientele happy.
Where do you begin with your marketing plan?
Find Your Niche
You may be a jack-of-all-trades when it comes to finances and mortgage loans. But offering a general scope of services can work to your disadvantage. Think of it this way: it’s like throwing your net over a vast ocean; you’re unsure if you’re going to catch fish despite the big net. Instead of pouring all of your efforts into marketing to everyone, become an expert in a specific area.
If you specialize in a specific area, you can market to a smaller group of people who have higher chances of converting into clients. Your marketing strategy may stay the same but messages are different for each home loan.
Consider the following approaches for the different types of home loans:
- VA Loans. If you’re marketing VA loans, your target market is the military community, specifically the veterans. VA loans include the Department of Veterans Affairs guaranteeing the loans so that military officials and veterans need not work with private mortgage insurance. Your marketing campaign should emphasize how the rates are at their lowest (compared to traditional bank financing). Don’t forget to mention that no down payment is required.
- Renovation loans. If you specialize in renovation loans, your target market is composed of clients who want to refinance/buy a home that needs repair or homeowners looking to make home improvements. It’s important to educate borrowers about this type of loan, as well as inform them how your loans can simplify the financial aspect of the process.
- FHA loans. Federal Housing Administration (FHA) loans are for first-time home buyers and people with low credit scores. Your marketing campaign should focus on how they can still get a loan despite their credit statuses.
Hold Educational Forums/Sessions
Buying a home is an important investment, which is why your target market will want to learn more to make an informed decision. Help this need to earn their trust by holding informational talks or seminars on mortgage loans and the processes involved. You can also teach them how to buy a house. Through these sessions, you can help your target audience understand your industry, as well as assure that they are in good hands when they work with you.
When you hold these events, gather the contact information of your attendees for your email marketing campaigns. Through emails, you can continue the conversation even after the seminar has ended.
A satisfied client is a winning marketing tool. When a client is happy with your services, they are more likely to refer you to their family and friends. That’s why your business relationships do not end once you’ve closed the loans. Follow-up is always important. Your next content campaign should include home maintenance tips and refinancing information so you can stay top-of-mind with your clients.
Also, ask them for referrals that you can put on your website and business listings. Potential home buyers depend on referrals when evaluating potential mortgage lenders. Gain their trust via the words of your satisfied clients.
Partner with Real Estate Professionals
Networking is always a crucial component in any marketing strategy, particularly with loan lenders. Consider creating email marketing campaigns and website content for real estate professionals. Keep in mind that real estate agents want to feel knowledgeable when meeting with clients, so educate them with the tools they need to succeed in the industry.
Create a more personal connection with real estate pros by offering broker profiles. This ensures them that they are in good hands.
The mortgage industry is thriving and competitive. As more people gain confidence in real estate, more people will seek your services. Direct them to your business with a proper marketing strategy.