How to Build a Loan Pipeline (and 4 Common Mistakes to Avoid)

by Tomi Pironti

A mortgage loan pipeline refers to loans that have been initiated but have not been completed. Loan officers need to know how to build a loan pipeline as a core part of their business. 

Managing your pipeline can make you more efficient and can increase your bottom line. This guide will show you how to build a loan pipeline and help you steer clear of common mistakes.

How to Build a Loan Pipeline (and 4 Common Mistakes to Avoid),

How to Build a Loan Pipeline

Want to learn how to build a loan pipeline? Here are 4 steps.

1. Stay Informed

Loan officers can increase their effectiveness by keeping up with current mortgage and consumer trends. For example, most of today’s homebuyers struggle with credit. A loan officer should have the knowledge to help these buyers connect with the right loans.

2. Get the Word Out

A little bit of marketing goes a long way. The right marketing tools can help you generate leads and follow up on prospective customers.

3. Stay Connected

Building relationships is one of the most important parts of the lending industry. Staying connected to your clients helps ensure a good working relationship and improves your reputation as a loan officer.

4. Use the Right Tools

Never underestimate the power of the right software. Customer relationship management (CRM) tools can help you with things like communication, marketing, and more. Additionally, they will give you access to the data you need to make decisions on the fly.

4 Common Mistakes to Avoid in Building a Loan Pipeline

What common mistakes should loan officers avoid when creating a mortgage pipeline?

1. Being Too Broad

Not every lender has to occupy a niche. But sometimes loan officers can spread themselves too thin by pursuing mortgage loans of varying types. Instead, try to focus on one key area and build your pipeline around that.

2. Not Being Selective with Loans

As a loan officer, it’s tempting to accept every loan that crosses your radar. But some loans are better than others. Focus on the loans that will mean the most for you and your clients or the loans that align with your area of specialty.

3. Not Setting Realistic Timelines

Be realistic. If your turnaround time is 30 days, don’t insist that you can close within 20. This is especially true if closing depends on third parties or special considerations, or if the property needs further insurance review.

4. Closing the Relationship After Closing the Sale

How to Build a Loan Pipeline (and 4 Common Mistakes to Avoid),

Your former clients can actually be your greatest current assets. Stay in touch and send them a message after the first month and/or year goes by. They may know others who are looking for a home loan and can help you land some new leads.

Make Every Customer Count

Every loan officer can benefit from the right customer relationship management (CRM) platform. At BNTouch, we provide innovative solutions to help you with communication, marketing, and much more.

Request a demo today, and you’ll soon discover how BNTouch can improve your lending business!


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Tomi Pironti
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