I’ve written before about how loan officers can build successful referral partnerships (here), but this week I wanted to dive into the best referral sources. Every loan officer knows the importance of establishing relationships with Realtors, but real estate agents are only one source for referrals. In this article, I want to explore referral sources other than Realtors. Here are some of the other options, where to find them, and most importantly, how to make the most out of those relationships:
Builders and Construction Companies
The people that build and renovate homes for a living are a natural fit as referral sources. Establishing a working relationship with a building company is beneficial for everyone involved — you get new leads in the form of interested homebuyers who will be looking for financing options, the builder will have someone in place to take care of pre-approvals (so they’ll know potential buyers are qualified for the purchase), and the customers will have all their needs covered.
Schools and Educational Institutions
Offering lectures at local colleges and universities is a great way to spread the word about how to save money, be fiscally responsible, and the benefits of owning a home. Offering financial advice and instruction to future homebuyers introduces you to the prospective homebuyers in your area, and you’ll also get the opportunity to reach out to their parents in the form of informational leaflets you hand out along with your contact information. It’s important that you don’t treat it as purely self-promotional; give valuable advice to the group that shows your good intentions and trustworthiness. It’s an effective approach to added-value prospecting in your community.
FSBOs
This works in a similar way to working with builders. When you build relationships with owners selling their homes without Realtor representation, it’s beneficial all around. Handling the pre-approval process with the potential buyers gives you a stream of new connections, and the sellers are also potential buyers elsewhere, so it makes for an ideal opportunity. You have to be sensitive in approaching the sellers, though. They’ve likely been approached by other LOs, so you’re going to have to stand out from the crowd (more on standing out from the competition, here) and show them that you have their best interest in mind, and that those interests come first, before your own.
Your Community
It’s not difficult to become known in your local community, but it takes work to build a strong, positive reputation. Again, let your self-promotion take a backseat to things that have a greater impact, like education. By educating people about the various financial aspects of homebuying and homeownership, you’ll begin building that unassailable reputation locally. You can offer free lectures or literature on useful topics like first-time homeowner FAQs, tips on improving credit scores, and more. By providing valuable information, you create a network of connections who may not turn into leads immediately, but they will likely come to you when the timing is right.
Financial Planners
The best leads for loan officers are almost exactly the same as the best leads for financial planners. A great way to reach out to them is to already have a credit counselor on your team who can refer valuable leads to financial planners in return. This creates a referral network that benefits everyone involved. If you successfully partner with a few local financial planners, the referrals you get will likely have their finances in a great shape, which means less work for you and your team.
With some out-of-the-box thinking and a little self-confidence, you have a great deal of new opportunities within reach. So, get out and meet people, send some LinkedIn messages, and begin building your referral network today.
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