Last Updated on May 28, 2024 by Luke Feldbrugge
With changes in the mortgage industry and economy, marketing strategies for loan officers in 2024 must adapt if lenders are to remain competitive and grow their businesses. Lenders who understand current market trends, foster trust through their own expertise and develop strategies tailored to today’s borrowers, will be well-positioned to succeed.
On May 9th, Freddie Mac announced the mortgage rate decreased after five weeks of increasing rates. The 30-year fixed rate mortgage was down to 7.09% from 7.22% the prior week.
“After a five week climb, mortgage rates ticked down following a weaker than expected jobs report. An environment where rates continue to hover above seven percent impacts both sellers and buyers. Many potential sellers remain hesitant to list their home and part with lower mortgage rates from years prior, adversely impacting supply and keeping house prices elevated. These elevated house prices add to the overall affordability challenges that potential buyers face in this high-rate environment,” said Sam Khater, Freddie Mac’s Chief Economist.
Slow economic growth, an unemployment rate that remains under 4%, and housing demand showing improvement over last year, has signaled movement in the right direction, according to Freddie Mac’s April outlook.
First-time homebuyers continue to account for most purchase applications, with 60% of applications generated from this market segment.
How to Approach Marketing Strategies for Loan Officers in 2024
Some of the most effective marketing strategies for loan officers in 2024 are all about personalizing service and being recognized as an experienced, knowledgeable, reliable professional.
The evolving mortgage landscape requires mortgage loan officers to adapt. Lenders who are on top of current trends, who are attentive to what and how borrowers communicate, are best able to develop and deliver a powerful, effective marketing strategy.
An approach combining digital and traditional marketing strategies allows lenders to reach a wider borrower audience and improves chances of turning them into short- and long-term clients.
Loan officers must be proactive in their marketing efforts if they wish to grow their business. As discussed in our recent blog on consumer trends in mortgage lending, digital communications are an important tool for lenders looking to level up their business and acquire more customers.
Digital Marketing Strategies for Loan Officers
Digital marketing comes in a variety of forms. Recent research by Experian shows consumers are hungry to learn more about personal finance and how to best position themselves for home buying.
These sentiments are echoed in the 2024 Homebuyer Insights Report newly released by Bank of America. In this report, potential homebuyers responded that they didn’t feel adequately prepared for the process, and they are concerned about making mistakes when trying to understand:
- How to get a mortgage (41%)
- Homebuyer grant programs (53%)
- Interest rates (41%)
- Home buying vocabulary (39%)
Here are some ways you can provide educational opportunities for potential clients who may have one or several of those concerns:
- Educational videos – Focus on “the mortgage process”, and “preparing to own a home”, and other related topics in short form on Instagram Reels or TikTok. For more in-depth content that will be longer, post your videos on YouTube.
- Blog posts – Discuss targeted topics such as “How to improve your credit score” or “Assistance programs available to first-time homebuyers.”
- Guest articles and podcasts – Contribute articles to local online publications and blogs. Appear as a guest on a local relevant podcast to discuss issues; such as homebuying, the local housing market or personal finance. Then share this content on your own website and social media.
There are more ways to engage using social media that can help you reach targeted borrowers. It may take some testing of Instagram, LinkedIn, Facebook and other social platforms, but eventually you will identify what your audience prefers and where to post it.
- Regularly and proactively engage on social media. Post insightful content. Respond to comments in a timely manner. Contribute to ongoing conversations that highlight your expertise. Share client testimonials on your website and social media that provide insight to your client’s experience working with you. These are even better if they positively highlight your skills, level of expertise, or any niche offers you provide clients.
- Execute a strategic ad campaign focused on a specific target audience segment using the ad targeting capabilities of each social media platform. Partnering with a local real estate agent on such a campaign may offer some benefit with shared costs.
Modern technology and automation tools assist loan officers with multiple aspects of their business. These tools are central to executing strong marketing strategies for loan officers in 2024.
- Customer Relationship Management (CRM) technology – A CRM provides a system for lenders to manage information and communications with clients and potential clients. The centralized system stores customer data, allows for more targeted and streamlined communications, and automates redundant tasks so lenders can focus on tasks that require the human touch.
- Social media and email automation tools – Whether creating marketing graphics for social media posts, scheduling social media posts, or launching an email campaign, be sure to evaluate different types of tools to help improve and streamline various aspects of your marketing strategy.
- Chatbots and virtual assistants – Customer support tools that are available around the clock can elevate customer service. Currently, they serve as a competitive differentiator as many lenders have not built one into their processes. Plus, a growing number of potential borrowers view chatbots and virtual assistants as adding more credibility to a lender’s capabilities. They see these lenders as being more client-focused because they offer convenient solutions to their clients.
Conventional Marketing Strategies Stand Strong
Relationships are at the heart of mortgage lending and a mortgage lender’s success. While digital marketing is transformative to the business, it does not replace traditional marketing strategies for loan officers.
Cultivating relationships and being a part of the community are key, and in no small part because we know word of mouth referrals from trusted friends and family are often how a homebuyer, particularly first-time and younger homebuyers, choose to contact a loan officer.
Building relationships and customer loyalty stems from a customer’s experience, and a loan officer’s continuing effort to nurture the relationship over time.
Here are some suggestions on how to stay in front of potential clients:
- Take advantage of networking opportunities – Attend local business gatherings and industry events. Get involved in active community-based organizations and sponsor activities. Reach out and get to know leading real estate agents that service the same customer base and communities.
- Referral programs – Encourage real estate agents and clients to refer potential homebuyers through incentive programs.
- Print and direct mail – These are particularly helpful when strategically targeted to a demographic, for example, a mailing highlighting competitive interest rates, or a niche offer you provide that your competitors do not.
- Brochures and flyers – Create brochures and flyers to leave behind at real estate offices, open houses, financial planning businesses or other relevant businesses in the market you serve.
Using a mix of several of these marketing strategies is key to finding success in your market. Be sure to check out these 5 specific marketing strategies for lenders to determine if any of them make sense for your business.
Not every strategy will work for you. But, it is important to take stock and track the results of different efforts to determine how your target customer reacts to your marketing tactics to determine what works best for your preferred clients.
Join Homes for Heroes – Be the Lender Heroes Want
Homes for Heroes can help you specialize in your market and grow your mortgage lending business by focusing your services on helping your local heroes buy or refinance a home. You can offer them something special, something beyond the transaction, by saving them money as a way to thank them for their service.
Simply register and schedule a time to learn more about the benefits of being a Homes for Heroes local market specialist, and become the lender your community heroes want to work with for their home and mortgage needs
