Building Your Loan Pipeline as a New MLO | Real Estate License Guides

New MLOs typically take 3-6 months to close their first loan and 12-18 months to build a consistent pipeline. The mortgage business is relationship-driven, with 70-80% of loans coming from referrals and repeat business for established originators. Here’s how to build that foundation.

Understanding the MLO Sales Cycle

Typical Timeline

Stage	Timeframe
Lead to application	1-7 days
Application to processing	1-2 weeks
Processing to underwriting	1-2 weeks
Underwriting to close	2-4 weeks
Total cycle	30-60 days

This means leads generated today won’t produce income for 1-2 months minimum.

Lead Sources for New MLOs

Realtor Partnerships

Real estate agents are the primary lead source for purchase mortgages:

How to build realtor relationships:

Attend open houses and introduce yourself
Join local realtor associations
Provide value before asking for referrals
Offer quick pre-approvals
Communicate consistently during transactions

What realtors want:

Fast, reliable pre-approvals
Communication (they hear from you, not their buyer)
On-time closings
Problem-solving ability
Professionalism

Builder Relationships

New construction relationships can provide steady leads:

Visit model homes and sales offices
Understand builder programs
Offer competitive rates on construction loans
Build rapport with sales teams

Financial Professionals

Other professionals serve your target market:

CPAs and tax preparers
Financial advisors
Insurance agents
Divorce attorneys
Estate planners

Past Clients and Sphere

Your personal network matters:

Friends and family
Former colleagues
Social connections
Community involvement
Church or civic groups

Online Lead Generation

Digital strategies for MLOs:

Paid options:

Zillow mortgage leads
LendingTree
Bankrate
Facebook/Instagram ads

Organic options:

Social media content
Local SEO
Google Business Profile
Content marketing

Building Realtor Relationships

The Approach

Wrong approach: “Can you send me leads?”

Right approach: “How can I help you close more deals?”

Providing Value First

Before asking for referrals:

Offer rate quotes for their clients
Provide market updates they can share
Educate their buyers on the loan process
Be available when they need answers
Close on time every time

Co-Marketing Opportunities

Partner with agents on:

First-time buyer seminars
Social media content
Open house presence
Community events
Market update newsletters

Converting Leads to Applications

Speed Matters

Studies show:

Leads contacted within 5 minutes convert 21x better
After 30 minutes, conversion drops 80%
Response time is a key differentiator

The First Conversation

Goals of initial contact:

Build rapport quickly
Understand their situation (purchase timeline, property type)
Qualify (income, credit, down payment)
Set expectations about the process
Schedule next step (application or follow-up)

Pre-Qualification Process

Quick pre-qual:

Basic income and asset questions
Credit score range (self-reported)
Purchase price range
Down payment amount
Approximate monthly payment comfort

Full pre-approval:

Credit pull
Income documentation
Asset verification
Detailed analysis
Conditional commitment letter

Pipeline Management

CRM Essentials

A good CRM helps you:

Track all leads and contacts
Set follow-up reminders
Manage pipeline stages
Automate communications
Measure conversion rates

Popular MLO CRMs: Velocify, Surefire, Shape, Whiteboard

Pipeline Stages

Stage	Actions
New lead	Contact within 5 minutes
Contacted	Qualify, set appointment
Pre-qualified	Gather documentation
Application	Submit, track status
Processing	Update client, resolve conditions
Clear to close	Schedule closing
Funded	Thank, ask for referrals

Follow-Up Sequences

For new leads:

Call immediately
Text if no answer
Email with value
Call again next day
5-7 touches in first week

For nurture (not ready now):

Monthly market updates
Quarterly check-ins
Rate alerts
Life event triggers

Common New MLO Mistakes

1. Not Prospecting Daily

Problem: Only prospect when pipeline is empty Solution: Block 1-2 hours daily for lead generation

2. Weak Follow-Up

Problem: Give up after 1-2 contacts Solution: 8+ touches typically needed; use automation

3. Chasing Unqualified Leads

Problem: Spend equal time on all leads Solution: Qualify quickly, focus on ready buyers

4. Ignoring Past Clients

Problem: No system for staying in touch Solution: Database management, regular contact

5. No Online Presence

Problem: Prospects can’t find you Solution: LinkedIn, Google Business, social media

Building Referral Relationships

The Ask

After a successful closing:

“I’m so glad we could help you get into your new home. My business is built on referrals from happy clients. Do you know anyone else who might be looking to buy or refinance?”

Systematic Approach

Deliver exceptional service: The foundation
Ask at closing: When satisfaction is highest
Follow up at 30 days: Post-close check-in
Stay in touch: Regular value communication
Make it easy: Provide contact info, introduction script

Referral Partners

Build systematic referral relationships:

5-10 active realtor partners
2-3 financial professionals
1-2 builders
Your past client database

Tracking Your Progress

Key Metrics

Metric	New MLO Target
Contacts/day	10-20
Applications/month	2-4
Loans funded/month	1-3
Realtor meetings/week	3-5
Pipeline value	3x monthly goal

Weekly Review

Every week, assess:

Lead sources performing
Conversion rates by stage
Follow-ups completed
Relationship building activities
Areas for improvement

Key Takeaways

Pipeline building takes 12-18 months
Realtor relationships are primary lead source
Speed of response matters enormously
CRM is essential for tracking
Consistent prospecting beats sporadic effort

Get your MLO license and start building your pipeline. Visit our state licensing guides to begin.