Subprime Mortgage Leads

A subprime mortgage lead is someone is interested in a mortgage loan, but has credit problems and so pays a higher interest rate to cover the increased financial risk to the lender. Due to our current economic crisis, there will continue to be an unending supply of subprime mortgage leads.

Some lenders and loan officers prefer to generate their own subprime mortgage leads. Some of the best subprime mortgage leads come from using direct mail. You can obtain lists of homeowners that meet your critera from mailing list companies and target your offers to their specific circumstances.

For example, you might order a list of people who originated a loan with a subprime lender several years ago. Once their pre payment penalty expires they may be ready to refinance. You may even be able to get them a lower interest rate if their credit circumstance have improved.

Another list that could bring in prospects is from credit agencies. Look for homeowners with $15K to $80K in outstanding credit card debt. You would be doing them and yourself a service by helping them get out from under those high interest credit card payments with a refinance mortgage.

If you are able to get your prospects pre approved, you should have an easy time getting a high conversion rate. Show them how much they will save by refinancing with you. Make sure your direct mail piece complies with all state regulations and requirements.

Subprime mortgage lead generation is more of an art than a science. Change things in your letters occasionally to see what works best in getting the most response. Yes, you can buy subprime leads, but the most profitable thing would probably be to generate them yourself.