Data Facts Lending Solutions Blog

Three Potential Millennial Homebuyers Tips Mortgage Lenders Must Know

by Matt Scott

Apr 26, 2016 10:05:14 AM

woman_asking_question-2.jpgHow much do you really know about potential Millennial homebuyers? 

Do you possess enough information about their personalities and spending habits to help you close more loans and reap literally huge profits from doing business with them? 

The millennial generation makes up more than 32% of all home buyers according to a recent study by the National Association of Realtors, which is the largest generation currently in the market to buy a house.

The Millennials (usually classified as being born between the early 80s to the early 2000s) are a different breed of consumers than Gen Xers and the Baby Boomers, and should be approached differently by the mortgage industry professionals.  Below are three important characteristics of the millennial generation that all mortgage lenders need to keep in mind to successfully transact with this generation. 

They Are High-Tech Consumers.  Keep Up!

Millennials are tech savvy.  They are drawn to a technological approach in all aspects of their lives, including buying decisions. The time is gone for depending solely on face-to-face sales tactics.  Smart mortgage lenders will offer solutions that are highly technological that will appeal to a younger generation.

What This Means for You:

Lenders should transform into a knowledge hub for millennials.  Offer online tutorials that are short and impactful, giving insight into financial topics such as the benefits of purchasing a home- guide them through the process easily.  Maintain an online presence that allows the borrower to apply for a loan and keep all of their documentation in one, easy-to-use platform that they can access on any device (laptop, smartphone, tablet, etc.).  They will LOVE you for it.

They Like Openness and Honesty and Sniff Out Greasy Sales Tactics Easily.

The Millennial generation is very well connected.  They know how to use technology to dig out information they need and share it with a huge network (social media) at any given time.  They have most likely already done their research and have come to you seeking a transparent solutions partner, not just a provider.  At the first hint of a greasy, pushy sales tactic, they will find someone else to do business with. 

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Streamlining the Lending Process

 

What This Means for You:

Mortgage industry professionals must stay away from pressure sales tactics. Be informative.  Be transparent.  Be a source of information.  Follow up in a proactive manner throughout the loan process with two-sided conversations. 

They are Different.  Don’t Freak Out!

One of the most distinguishing characteristics of potential millennial homebuyers is that they are far from traditional.  They pride themselves on being unique and different in their personal and professional lives.  For example, the traditional marriage dynamic has shifted over the last 60 years.  Today, only 26% of millennials have tied the knot.  To give some perspective, 48% of Baby Boomers (at the same age as the current millennial generation) were already married.

What This Means for You:

Don’t be surprised if there are more single applicants and same-sex joint applicants. Take a look at your marketing literature.  Be sure you are marketing to different types of borrowers rather than only the traditional husband/wife borrower.

By analyzing certain characteristics of potential Millennial homebuyers, mortgage lenders can use that information to their advantage and close more loans faster and easier.

 Are you looking to close a higher percentage of loans?  Data Facts offers a full suite of mortgage lending solutions through a secure web-based platform that makes your process effortless! Our hands-on customer service combined with our state of the art technology, and credit score simulators, truly make doing business with Data Facts an easy choice!

 

Topics: mortgage trends, Mortgage lenders, Potential Millennial homebuyers

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