There is no doubt that the millennial generation has a lot of interest in buying a home or potential purchase power, but this has not yet translated to tangible results in terms of mortgage loan application approval. Despite the fact that many millennials report wanting to own a home, they still have not made a splash in terms of making those purchases. The lack of this attention has led to public officials and government agencies, as well as lenders themselves, looking into possible avenues to reach younger home buyers.
Many current lenders built their businesses up to this point by relying on the baby boomer generation- this generation was responsible for a tremendous bulk of the mortgage lending industry for a long time. But the scope of the landscape is changing, and mortgage lenders who want to stay successful in the long term should be prepared to reach out to this younger generation.
Many of the same tactics used with baby boomers just required slight alterations in order to reach Generation X, but as time goes on, it’s clear that these same strategies are unlikely to succeed with millennials.
Research data back up the fact that millennials definitely want a piece of the action in the market. Pew Research shows that millennials want to marry, grow families, own homes, and sock away savings for retirement, too. What makes them different is that they tend to get involved in these plans later than their predecessors. What follows are three tips lenders can take to reach out to this growing and critical market.
Provide the Right Education
Information is power for millennials, but it needs to be delivered in a format they can access and appreciate. This means lenders must make efforts with social media, phone apps, and websites. This information should include details about the benefits of homeownership as well as facts about how the process works.
Although it might seem a daunting task for lenders, the application and process of closing need to become more technologically friendly. With the current perception that so much paperwork is involved, the ideal way to reach this younger generation is to deliver the possibilities in a simple and accessible format. Combined with the educational opportunities provided in similar fashion, this makes the possibility of owning a home that much easier for millennials to digest.
Match Employees to Ideal Customers
Having a more diverse and balanced workforce is the final piece of the puzzle for attracting the younger generation to buy a home. Having employees that your customers can relate to is essential for providing the most accurate information and discussing selling points in a meaningful manner. Over the past decade, the mortgage industry hasn’t really drawn in interest from the younger crowd, despite the fact that as a career opportunity it meshes well with the desired rewards, flexibility, and work environment that millennials prefer.