These days, it's harder than ever to break through to customers. While a company like Rocket can spend more than $800 million on
Look to local sponsorships and ads
For small lenders, being part of the community is critical. One approach is sponsoring local sports teams, something New Orleans-based Standard Mortgage does regularly. Over the years, they've backed football squads at a nearby Catholic high school as well as Tulane University's Green Wave. Ella Baldwin, the company's executive vice president of marketing, said it's both a way of giving back and building brand awareness.
"I think whenever you have a sponsorship and then you have a person there that can connect with people and establish relationships, that's more meaningful than something that's not as personal like a radio ad," she said.
Local advertising has also paid off for Joanne Johansen, owner of Platinum Mortgage Solutions in Wallingford, Conn. Her ads run during movie previews, in local magazines, on takeout menus and even on diner placemats. While she admits the strategy can "sound silly," the repetition has made an impact.
"People see you multiple times, multiple places," she said. "If somebody said, 'Oh, you should use this person,' they're going to go, 'Oh, Platinum Mortgage. I've seen them all over.'"
Educate consumers
Community outreach doesn't have to stop at ads. Many lenders aim to educate borrowers on the mortgage process, which not only helps first-time buyers but also creates goodwill and future business.
Standard Mortgage, for instance, runs a blog with posts on topics like tips for millennial buyers and how pre-approvals affect credit scores. Baldwin said the posts are based on common questions loan officers hear, with the added benefit of boosting SEO.
"How Google works is, the more credit you have because of the blogs on your website, the more credibility you have as a lender and as an authority on the subject," she explained.
Others, like Johansen, prefer in-person outreach. Every other month, she partners with real estate professionals to host "home buyer nights" at community centers or restaurants. Attendees get pizza, prize raffles, and a chance to learn about the homebuying process in a low-pressure setting.
Use social media
A strong social media presence has become essential for even the smallest lenders. At Gulf Coast Bank and Trust Company in New Orleans, Instagram videos feature loan officers answering questions and showing behind-the-scenes moments from office life.
"Sometimes it's just giving basic information," said Joe Uzee, president of Gulf Coast's mortgage division. "Like the difference between a pre-qualification and a pre-approval. Very basic information that's vital."
For certified mortgage advisor Hillory Hracek, social media is the "backbone" of her marketing. Her feed blends mortgage tips with lighthearted industry humor, including lip-syncing videos. The approach, she said, has helped her win clients and even referrals from people who didn't ultimately use her services.
"That's not just marketing working – that's building trust strong enough to change someone's mind after the fact," she said.
Incorporate digital marketing – but keep it targeted
For most local lenders, digital marketing is more cost-effective than billboards or radio spots. At Consumers Credit Union, that means using emails and newsletters to reach existing customers.
"We're not a larger nationwide organization that has a pretty hefty marketing budget," said Herb Behrens, vice president of mortgage lending. "So we're a little bit of, hey, let's use our money wisely. How do we reach and touch these people?"
Johansen takes a similar approach, but limits her emails to former clients—a strategy that's earned her an 85% open rate. She's now considering a newsletter with mortgage tips that clients could pass along to friends and family.
Look for niche audiences
Smaller firms can also compete by serving borrowers the big players overlook. At Mattamy Home Funding, the free "Able Ready Own" program helps potential buyers improve their credit until they qualify for a mortgage. President Estelle Norvell said the service builds loyalty while moving people toward homeownership.
Miami-based FEMBi Mortgage targets high-earning professionals with 100% financing for doctors, attorneys and CPAs. "In over 10 years of offering the product, we've never had a late payment," said Ed Wilburn, the company's chief marketing officer.
Don't forget face-to-face connections
Despite all the digital tools available, real estate is still a relationship business. Uzee calls it "pressing the flesh," and for many lenders, it remains the most reliable way to bring in new clients.
"Whether you're a bank like us, or you're an IMB or mortgage banker or mortgage broker, when you're out there in the community and you let people know what you do, there's that relationship," he said.
At Coastal Credit Union, word-of-mouth from members is their strongest marketing tool. Kevin Holton, vice president of mortgage sales, said satisfied customers often become the company's best promoters.
"As long as you treat that customer well and they had a good experience, you gave them a great rate and they're satisfied, they're going to tell every family member and every relative out there," he said.
