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A Guide to Jumbo Mortgage Leads

A Guide to Jumbo Mortgage Leads

Are you a broker or lender who is currently in the market for jumbo mortgage leads?  Do you need some background information which better defines jumbo mortgage leads and where to find them?  If so, the following article may be very helpful.  Here we will provide the current working definition of the term “jumbo mortgage leads,” and show you how the process of purchasing leads is conducted.

What Are Jumbo Mortgage Leads?

In real estate and finance there are a number of technical terms that can often be confusing, but when it comes to the term “jumbo mortgage leads” that is certainly not the case.  In fact, the term is fairly self-explanatory. A jumbo mortgage is defined as any mortgage with a proposed loan amount greater than the industry-standard definition of conventional conforming loan limits.  In the United States, this standard is set by the two largest secondary market lenders, Fannie Mae and Freddie Mac.

Simply put, any loan over $675,000 is considered a jumbo mortgage in the United States, specifically because a typical Fannie Mae or Freddie Mac loan will not cover any amount beyond this dollar amount.  This does not mean that loans this size will not be covered by Fannie Mae or Freddie Mac, just that the balance of the funding for loans of this size must come from an alternate lending source.

Jumbo Mortgage Leads:  The Holy Grail!

The term “lead” is used in real estate and others sales professions and can best be described as a tip that someone is interested in making a purchase. These leads (in this case mortgage leads) are typically collected by a third party using a variety of methods and then offered for a fair price to real estate brokers and lenders. 

In real estate, a lead eliminates the need for “cold calling” or the “wait and see” approach, and provides for lenders and brokers the name and contact information of a person or group of people interested in buying a home or a piece of property.  Naturally, not every lead will wind up as a sale, but from a lender’s standpoint, it certainly beats the alternative of waiting for the customer to “make the first move.”  As a result, companies who specialize in the gathering and sales of mortgage leads can be very lucrative.

Jumbo mortgages, also known as luxury mortgages are usually for very expensive homes and vacation properties and are considered the holy grail of mortgage leads.  The beach front villa, the estate by the lake and the large mountain home are just a few examples of property types that would require a jumbo mortgage, and for lenders and brokers, closing on a jumbo mortgage may equate to higher commissions and in some cases, even a promotion, which is why jumbo mortgage leads are so sought after.

Jumbo mortgage leads are usually purchased in bulk and the prices vary depending upon the number of leads purchased, the area in which those who initiated the process live and a number of other factors.  Companies that specialize in providing jumbo mortgage leads collect all the necessary data and compile it into lists which are then sold to brokers and/or lenders.  According to statistics, 5%-10% of all jumbo mortgage leads wind up as final sales, a number which is far greater than sales leads from cold calling and other non-lead methods.

Photo courtesy of C y r i l l i c u s.

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