It’s surprisingly common to come across a lead merchant that, among dozens of other lead types, has a vertical labeled “Mortgage.” What’s strange about this is that there are many different kinds of mortgage leads, and lumping them into one category ignores some major differences between even residential and commercial mortgage leads. This division of mortgage leads is probably the most basic, but it brings some key differences. Here’s what you need to know about the difference between residential and commercial mortgage leads:
Security - or Lack Thereof
When thinking about the lender side of residential and commercial mortgage leads, keep in mind that commercial mortgages generally aren’t backed by gov’t entities like Fannie Mae. Because of this, lenders bear the brunt of the responsibility for the loan, and they will do their best to minimize risk. This means that when a lender is looking into providing a commercial mortgage, they will require much more information.
If they’re not sending someone to personally inspect the business, they’ll be asking a lot of questions before making a proper decision, including personal and commercial income, sources of income, and details about the business’s operations. A residential mortgage is much more cut and dry - if you have an income, you can qualify for something - but since commercial mortgage leads rely on the business’s success as well as the individual taking out the loan, much more information has to be involved.
Ultimately, commercial mortgage leads just don’t have that many rules. Residential mortgages are often backed by the government and are heavily regulated just like real estate. Commercial mortgages are considered a business expense rather than a loan, so anyone giving out these commercial loans has much more flexibility. This allows them to be as stringent as they please.
What This Means For Mortgage Lead Distributors
A good form is key to a good lead, but your buyers may be looking for more than the standard set of information. Make sure you’re not just building a standard mortgage lead form - talk to your buyers and see what information they prefer to know. Often this will include how much money the business in question makes, what type of business it is, and credit history of the lead.
What This Means For Mortgage Leads
Looking for companies with tighter restrictions or greater attention to detail may be a hassle, but it speaks volumes for the quality of the business and the loan someone may be receiving. Research is as important to the lender as it is to the customer, so the process speaks volumes as to the quality of a loan.
Dozens of companies use the boberdoo system to buy and sell mortgage leads of all kinds - in fact, that is what boberdoo was first designed to do in 2001. Over the last decade and a half, we've built up an amazing system to quickly and efficiently buy and sell leads. If you're interested in a lead distribution system that provides consistent, sophisticated, and practical distribution, click the banner above, or give us a call at 800-776-5646.