Fill Your Funnel Intentionally: Lead Generation for Loan Officers

In the age of AI and technology, our devices and machines can do virtually anything. Technological advancements have created a new horizon of “firsts“, which I argue have shaped life as we know it. In the 19th century, Charles Babbage conceptualized the Analytical Engine. This steam-powered calculation device was developed with the ability to ‘eat its own tail’ by modifying calculations while running. It wasn’t until 1941, one century later, that Konrad Zuse built Z3, our first general-purpose computer! Comparing those machines to your beloved MacBook or Windows device, it’s almost frightening to think about what technology will look like 10, 50, and 100 years from now. 

In the world of medicine, we have robotic surgery and robot-assisted surgery. Machines are built and trained for the precision work a human hand once did and still does! Isn’t it amazing how we’ve adapted technology to fit our lifestyles? If there’s something technology can’t do, an AI Trainer is out there programming a machine to be able to. While the idea of technology, AI, and robots will always prompt concern about replacing the need for human labor – we can also sit back, relax, and let the machines do the work for us.

The concept of modern robotics started in the 1900s from the storyline of a Czech theater production. A play was published by Karel Capek called “R.U.R“, short for Rossumovi Univerzaini Roboti. In English, the phrase translates into “Rossum’s Universal Robots”. Robot, derived from the Czech word “robota”, translated to ‘forced labor‘. In the play, robots became a serving class in society, only to eventually rebel against humans, which brought about the end of humanity. Don’t worry; I won’t take you down a rabbit hole of conspiracy theories.

With the rise of Chat GPT, there isn’t a question in the world that you can’t get somewhat of an answer to. At the touch of your fingertips, you can ask AI to build a meal plan and workout split, create a financial budget, and build a “day in the life” for your dream career. There’s even a “Therapist GPT” to guide mental health topics! While technology will never replace face-to-face interaction or contribute to the learning associated with putting in elbow grease when solving a problem, it’s handy for quick answers.

Needless to say, we’ve made technology work for us. We’ve said goodbye to the Rolodex and “hello” to a CRM…at least, most of us have. I’ll go out on a limb and assume that if you’re from a generation where technology is foreign, you’ve probably kept your business up by doing it the same way as always – the pen-and-paper route.

As a seasoned and unseasoned loan officer in the mortgage business, it’s an expectation that you’ll be utilizing technology to grow and maintain your business. Whether it’s social media content, email campaigns, or virtual CE classes, you’ll have to grow to love technology. You’ll likely have a sink-or-swim contemplation moment if you can’t adapt.

Fill Your Funnel Intentionally: Lead Generation for Loan Officers

Thanks to our technology, we can connect with real people and prospects more efficiently than ever.

Lead generation is a concept that has shaken the world of sales, no matter the industry.

It might be a wild concept but what if I told you there are 7 types of sales leads?! While all of them may not be used across the board in your industry, chances are you’ve heard of a few:

  1. Cold leads- Prospects who haven’t shown interest in your services yet. They may fit your target audience but haven’t engaged with your content, making them the hardest to convert. These leads require strong outreach and nurturing.
  2. Warm leads– Prospects who have engaged in some way—maybe they’ve visited your website, downloaded a resource, or interacted with your marketing but aren’t ready to apply yet. These leads need more education and relationship-building.
  3. Hot leads- Highly engaged prospects who are actively looking for mortgage solutions and are ready to take action. They’ve expressed clear interest, making them prime candidates for direct follow-up.
  4. Information qualified leads (IQLs)– Prospects who have shared their contact info in exchange for valuable content (like a home-buying guide). They’re at the awareness stage and need nurturing before they’re ready for a sales conversation.
  5. Marketing qualified leads (MQLs)– Leads that have engaged with marketing efforts (such as attending a webinar or repeatedly visiting your site). They show strong intent but aren’t necessarily ready to apply yet. The goal is to continue nurturing them until they’re sales-ready.
  6. Product qualified leads (PQLs)– Leads who have directly interacted with your product or service—such as using a mortgage calculator, starting an application, or signing up for a pre-qualification check. They’ve experienced your offering firsthand and are closer to a buying decision.
  7. Sales qualified leads (SQLs)- The most valuable leads—these are vetted and ready for a direct conversation with a loan officer. They’ve shown clear intent, meet your lending criteria, and have taken actions that indicate they’re ready to move forward.

The time I’m spending with you now is for Lead Generation, so I won’t go into much detail about lead types or their respective qualifications. But, while I’m here…I figured I’d throw some more information at you. As a marketer (versus sales), I don’t directly work directly within the pipeline, but I can sure talk about it. You may be wondering who qualified me to discuss leads, but I proudly qualified myself to have this conversation with you.

Allow me to set the scene for you – I’m 20 years old, a marketing intern for a computer coding school, gaining field experience to obtain class credit. As an unpaid intern, you can picture how glamorous the job was. My primary responsibilities were working on our social media content calendar and execution of the weekly events hosted for our students. You might be wondering, where does this tie into lead generation? Well, one day, I was introduced to cold calling.

At the time, cold calling was the worst task you could have given me with only retail and hospitality experience on my resume. My manager gave me a list of companies to call with a vague explanation of why I was to call them for lead generation, and you bet she didn’t give me a script either. I was going into cold calls, COLD. Freezing, actually. I used a standard corded phone plus an operating system. Looking back, I’m grateful that I didn’t have a headset. You know, the stereotypical ones that people in call centers use. The goal of my cold calling was to reach companies with underdeveloped websites, likely to experience compromised website security. My mission was to acquire new clients that our coding students can work with. The academy students would gain HTML and JavaScript experience in the real word, and the client in turn would be gaining a more secure website. Example targets we sought were a dance school and a philanthropic organization, to give you a better idea of who I was calling. 

I was shaking and flustered by the second ring of my first phone call! Luckily, not many people answered. Unfortunately, that meant some lucky person was responsible for listening to the voicemail on their company answering machine. Who would have thought that leaving a voicemail recording is a skill that needs to be developed? I’ll admit that 6 years later, I still get butterflies when I need to leave a voicemail. Needless to say, if someone were to hand me a list right now of numbers to dial up, I’d knock it out of the ballpark. 

But I digress – I humorously tell you this story to affirm that the days of cold calling for lead generation are over. I’m grateful for how we’ve advanced our technology, allowing it to do most of the work for us. 

Directly relating to a loan officer (and in any other sales role), there’s an emphasis on lead generation. Dare I say, it has even become a viral term in relation to how people ideally want to grow their business model. It’s not always straightforward, thus preventing loan officers from branching out of their regular business workflow and current networking “strategy”. I’ll even go one step further in saying, most sales positions don’t spend the time to actually develop a strategy and make the decision to go the route of purchasing leads online, mistaking this route for lead generation. Acquiring leads without a strategy is detrimental to your business model. 

If you’re wondering, “How can lead generation benefit me or how I should be thinking about my strategy?” Let me give you the foundation.

Lead generation expands your network. Strong relationships with referral partners and other professionals will positively affect your referral business and your pipeline’s volume of loans. Think about it this way: The more connections YOU make, the higher the probability that connections get returned to you. When you open the door for yourself, you’ll get to watch others walk through the doorway without you touching the knob. Catch my drift? 😉

What’s the “WHY” behind lead gen? As a loan officer, lead generation directly impacts your pipeline through new client acquisition. What’s the end goal? Successfully closing the deal. Over time, lead generation will create traction for your business and support long-term success in this industry.

Now, what is lead generation? Lead generation, AKA “lead gen,” is the process of attracting potential prospects and converting them into qualified leads. It means narrowing in on those actively looking and ready to buy versus those “casually browsing.” If you want to nail your lead generation… get ready to network, put a smile on your face, and come with your A-marketing game.

What does lead generation DO for my business?

1. Sustained Business Growth

Lead generation will help you maintain a steady pace through the slow seasons of the industry’s fluid nature and prevent gaps in income. Small numbers add up – a handful of potential clients will take you far in the long run. Your efforts can convert a “maybe” into a “YES!” – but you must trust the process.

2. Build Credibility & Expertise

Being a thought leader in your industry sets you apart from the competition. It creates trust among clients, prospects, and referral partners. Get excited about educating others on your niche (mortgages, hello!), and you’ll become the go-to resource when someone needs more information. The more information you can provide, the more reliable you appear.

3. Competitive Edge

Our industry is competitive. Often, clients shop around with different lenders for the right fit. Knowing that a potential client has options when choosing their mortgage lender begs the next topic of Marketing and your CRM. Utilizing your CRM allows you to stay in front of clients with multiple options for their lender. Think about it: frequency and consistency create a pattern in our brain…keeping an idea (or person) at the top of mind.

Staying active with your marketing means taking the initiative rather than letting people come to you when they’re ready. Marketing and CRM utilization are two separate cans of worms that we’ll open another day.

4. Maximize ROI

Time and budgets are limited. Focusing on prospects with a higher potential for conversion prevents wasted effort and increases the chance of closing the deal.

Now you know WHAT lead generation is and WHY it matters. I’m going to elaborate on lead generation strategies that will make your next steps more digestible:

With social media’s popularity, especially amongst younger buyers, keeping your name visible is essential. Clean up your platforms, add your branding, and start sharing! Visibility = Opportunity. Use your platforms for professional and relational networking.

Increase trust by providing value. Adding value can mean blogging, video creation, and free resources. A First-Time Homebuying booklet is the perfect place to start. 

Referral business means you are regarded by the client’s realtor, financial planner, etc., as someone who can provide a solution for their needs. Having a referral network is not only trustworthy, but a low financial investment. 

Attend networking events in your community. If you’re not sure where to start, check Facebook and Eventbrite for hobby groups and meetups for activities you’re interested in. Host a lunch and learn event! Continuing education for your realtor and referral partners provides something of value (knowledge) and allows you to interact face-to-face with your partners.

When your marketing budget has room for some heavy lifting, paid advertising is great for targeted audiences and can result in immediate traffic. In addition to Google Ads, Facebook and Instagram have paid advertising options. Don’t know where to start? Head to YouTube for a tutorial!

Remaining engaged keeps you visible, not only on social media but also within your community. Sponsor events of groups you’re involved in or partner with local organizations. Facebook and Eventbrite are great places to search for events. Instead of aimlessly looking, start with one of your interests. Don’t pick a random event that appears appealing, start with something you’re genuinely interested in. Being in a place where you have something in common with those around you is the best way to build personal and professional connections.

The ins and outs of lead generation are a lot to digest, so I’ll wrap this up.

Lead generation is a powerful tool if you do your due diligence. A small bite each day. If you’re big on instant gratification, you won’t like this one… but hear me out. You don’t harvest the fruit the same day you plant the seed (hey, I wish!). Spending two hours in the gym daily to improve your strength and physique is the same principle at a micro-level in your business. Maybe the gym reference was needed to light a fire under your seat, or I lost you there.

 

I’ll argue that you have a few free minutes in your daily workflow that you choose to fill by scrolling on your phone. What can 30 minutes each day spent on a new idea or goal do over a few months? You’d be surprised at where focused efforts lead you. No pun intended for today’s blog article, but it works. Your brain and business will thank you! Mindful behavior isn’t a topic fit for a mortgage blog, but the concept applies.

Replacing empty time with a mindful action will not only mentally reward you but professionally as well. Don’t know where to start? Head to Google, YouTube, or ask ChatGPT! Three free resources that can get some ideas flowing.

While it’s impossible to implement each strategy immediately, I hope this got your imagination going. My goal is to leave you with more information than you started with, even if you must come back to it. Whether you are just starting in your journey of mortgage origination, or you are a seasoned veteran… lead generation is something that in the year 2025 could make or break your business model. Comment below on how you are currently using lead generation in your business.