Too few financial institutions approach mortgage lending with an integrated approach. One that recognizes the lasting importance of home ownership and home-secured financing among consumers.

The purchase of a home is often the single biggest financial decision a household will make. And the process of purchasing a home, especially for first-time buyers, is fraught with uncertainty and financial risk. It’s a time when individuals put an enormous amount of faith into their advisors, chief among them the financial institution (or mortgage broker) arranging the financing.

Like it or not, mortgage lenders make a lasting impression with their customers. You’ve worked hard to ensure that it’s a good impression, so why not turn that good-will into future business?

This is not a new concept. You’ve no doubt been in dozens of meetings debating the topic of “cross-selling” to mortgage customers.” There are many innovative and sophisticated cross-selling programs in place. But too often the programs fall short of expectations. The plain truth; it’s not easy. Once the deal closes, everyone moves on. The buyer has a new house to outfit. The lender has hundreds of other deals to close.

That’s where online banking programs can make a difference. For your “wired” customers, online programs oriented towards home ownership can take on a large role in the relationship, keeping it alive, and eventually leveraging the good-will and “mind share” into future sales of other loan and banking products. A financial institution that masters online “relationship mortgage” lending can benefit in three ways:

1. By profiting on the mortgage transaction itself, although that has become more difficult with razor-thin margins on conventional fixed-rate mortgages.
2. Perhaps more lucrative long-term, by becoming the preferred source for future home-secured financing (home equity lending, refis, subsequent mortgages) and ancillary services such as escrow accounts and insurance.
3. Referrals from satisfied customers.

Following is a suggested approach for using the online medium to support mortgage lending and turn it from a one-time transaction into a long-term relationship product.