Preapproved Candidates

A preapproved mortgage lead contains consumer information data about consumers who have been prequalified for a particular loan amount by another authorized lending broker. Preapproved mortgage leads are available from a variety of marketing service providers that also have the authority to compile credit reports and financial histories on those that allow their information to be seen by a variety of lenders and brokerages. The advantage for consumers who volunteer their contact number to be distributed to various lenders is that generally only one credit report is requested, the information then which becomes part of the lead or contact file. This decreases the detrimental affects of consumers having multiple inquiries on their credit reports as a result of shopping around for loans.

When a consumer volunteers his information to a marketing firm to be distributed to various lenders, this contact file is dispersed to all lenders or brokers that request them. Purchasing such preapproved mortgage leads can be quite expensive, ranging anywhere from $25 to $120 per file. Before investing, one must confirm that the marking firm is supplying "hot' data. A "hot" contact contains information about an individual who has requested information regarding a product or service and is ready to buy. It is just a matter of who sells them their desired product or service first.

The advantage of investing in this type of marketing is that a business is given contact information from a consumer desiring a business contact and in immediate need of the service the mortgage company provides. Some are exclusive in nature, meaning that once the information is given to a lender or brokerage, the name cannot be recycled and given out again. Not all data files are exclusive; sometimes the consumer wants more than one lender or brokerage to contact them so they can compare rates; however, exclusive data files will be more expensive that those that are not. A preapproved mortgage lead is the most expensive type of lead a lender or brokerage can obtain, yet the potential for profit to the lender or brokerage resulting in the close of a mortgage is high as well.

When evaluating marketing services to see where leads should be purchased, the quality of the information needs to be of prime consideration. Sometimes the consumers will enter false information in order to better gain loan approval. The best marketing services have procedures in place to verify the accuracy of consumer information and to weed out inaccurate or incomplete contacts. Many will also offer lenders and brokers a replacement preapproved mortgage lead if the first is found to be fraudulent. As with any business investment, it pays to be careful and judicious. "Teach me good judgment and knowledge: for I have believed thy commandments" (Proverbs 119:66).

Marketing companies who create consumer data files for purchase collect this information online or by traditional methods such as direct mailings and telemarketing. Gathering information the traditional way through telemarketing or direct mail can be costly and ineffective. With technology advancing at a rapid rate, most marketing companies are turning to the Internet for their advertising. People can search for mortgage information and come to a website where they can become preapproved and their name given to multiple lenders who will fight for their business. Preapproved mortgage leads are the bread and butter of lending and mortgage businesses. In business, getting the client in the door is the hardest part, and quality marketing investments help bring the consumer knocking.

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