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It’s taking a little longer than prior generations, but the current Millennial generation is growing up and starting to take hold of their future. Although their priorities may be a little different, many of the more than the 75 million Millennials, now between the ages of 18 and 29, will look to purchase a home in the next 5 years. That’s a great opportunity for Realtors, builders and mortgage lenders.
In servicing this generation, it’s important to know and understand their priorities. According to a recent Mortgage Masters report, 93% want to own a home at some point, 73% want children, but only 65% say they will marry. It doesn’t take much to figure out that this generation’s views on the traditional family may be a little different.
One big difference is that this group wants to feel good about, and enjoy, what they do for a living and aren’t as concerned about how much they get paid while doing it. This is something that may affect how much home they can afford. As a result, we may see more Millennials buying in urban markets which traditionally have lower home prices.
Millennial’s buying in urban markets will assist sellers in these markets to move up while stabilizing home prices and values in these areas. More move up buyers, more home sales, more home financing. Things may be looking up again.
Not to put a damper on all this but much still depends on the economy and job growth. If Millennials can’t find decent employment at reasonable incomes, then their home buying may be delayed. The window of opportunity may close very quickly.
Oddly, for such an educated generation Millennials are somewhat home buying and financing ignorant. About 45% do know if they would qualify for a mortgage, or for how much. While over 65% do not know about “closing costs”.
Their biggest concern is their outstanding student debts, which could be quite high. This all presents some challenges for lenders but also opportunities. Lenders with online educational material and preapproval programs can benefit by making prospective buyers aware of this information. This can attract potential Millennial, as well as all other, buyers to get pre-qualified before they shop. By the way, close to 95% of the Millennials say they when they’re ready to buy, they will do their home shopping online.
If you are not online with information about your company, products, educational materials, online preapprovals and loan applications you may miss out on the opportunities presented from these potential borrowers.
It’s the age of instant information and immediate service. When these guys are ready they want to move quickly and want a lender that can do the same. If they have to wait, even a day, for a response they may go somewhere else. Also, understand they will shop more than one lender at a time for their home financing. Service, honesty, and quality are all important.
When servicing Millennials, a lender must put their best foot forward and make a great first impression. They may not get a second chance. The same should hold true when servicing all your customers.
Loading ...Opportunity may be knocking soon. Are you prepared to answer, and take advantage, when it does?
Be prepared my friends…
