The mortgage application process can be very stressful and time-consuming. I remember searching for hours in order to provide all of the necessary documentation for my mortgage application. My hand even got a cramp from signing all of the closing paperwork. Several years later, I decided to refinance my mortgage to take advantage of the low interest rates. Although the documentation was a little easier to find the second time, I still had to sign a mountain of paperwork. During both experiences, the mortgage loan processors were very knowledgeable and experienced, making me feel at ease during the process.
I am noticing a new trend in the mortgage marketing offers I receive—some lenders are even using direct mail to promote their online mortgage application tools. By integrating mobile apps and websites into the process of buying a home, mortgage lenders are staying competitive while making the mortgage application process quicker and easier—and consumers are responding. Consider these stats from Scotsman Guide:
- 82% of recent homebuyers indicated they considered online websites a “very useful information resource”
- 57% received a mortgage quote online
- 12% received a mortgage quote via their mobile device
This is an opportunity for mortgage professionals to invest in the latest borrower-facing web tools to provide real-time loan status updates, easy document uploading, and faster communication. Bundling tools such as prequalification and mortgage applications, educational tools, and personal support can provide borrowers with an optimal online experience.
Communicating Speed, Ease, and Accessibility
The Rocket Mortgage tool by Quicken Loans is part of this new trend of online mortgage services intended to streamline the application process and make it easier for applicants. A recent article in Consumer Reports highlighted Rocket Mortgage’s 2016 Super Bowl TV commercial, which focused on how easy the online application can be: “just eight minutes,” they say, is all Rocket Mortgage needs to approve your loan. The article also reminded readers that it’s important to remember the application is just the first step in the process; a home appraisal and inspection may take weeks to complete.
Why Quicken Loans Invests in Direct Mail
Mortgage lenders are using direct mail to promote their online mortgage application tools. The long-form nature of direct mail can help online mortgage lenders provide more information than many other advertising tactics. According to research completed by Competiscan, Quicken Loans was the leading mortgage/refinancing direct mailer in Q1 2017 and accounted for 20% of the total mortgage/refinancing mail volume observed. Quicken Loans is using direct mail to market Rocket Mortgage and increased mail volume slightly in Q1 2017 compared to the second half of 2016. Acquisition offers focused primarily on speed and ease of refinancing. Personalized offers featured an estimated new monthly payment for the prospects based on their current loan.
There are several direct mail tactics and trends that work to complement online mortgage application tools and drive better customer experience in the mortgage sector. Some of the most effective are:
- Promotional Cards: Affixing a card to your direct mail piece creates a unique feel and heightens interest for the potential applicant. Plus, cards are often kept for future reference. Include all of the necessary information required for the recipient to start the application process, including your website and toll-free number. Consider adding an expiration date to create a sense of urgency.
- Johnson Boxes: Highlight the benefits of working with your company compared to other mortgage lenders. In addition to interest rates, include benefits such as fast turnaround time and convenience. Access to a home loan advisor may persuade or put potential applicants at ease who may be leery of the online application process.
- Multichannel Marketing: One of the main goals for online mortgage lenders is to drive people to their websites or mobile apps. By using pURLs or QR codes, you can direct potential applicants to your mortgage application’s website or mobile app. Always include a toll-free number so applicants can speak to a home loan advisor if they have questions, issues, or just need additional information.
IWCO Direct’s knowledgeable and experienced mortgage marketing specialists will put you at ease. Contact us today to see how we can enhance your online mortgage direct marketing campaign efforts.
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