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Another year, another year older for the Millennial generation. They are now in their prime home-buying years and finally coming to market.
According to recent activity, 45% of the purchase loans were made to Millennials versus 43% in December. Conversely, loans made to all other generations declined during the same period from 57% to 55. Millennials buying homes is a ray of hope in a challenging, new mortgage market.
These new homebuyers are not deterred by the rising interest rates. They are ready to buy and are out there looking for homes. With fewer homes for sale, they are challenged. When they find one, they want to move quickly to close the deal.
Since they do not have the cash on hand, they will need mortgage financing. With good credit average scores of:
- 725 for men
- 724 for women
and steady employment with good income, they are poised to make their mark in the housing market. But they’ll need help.
Recent studies show that most are still not knowledgeable when it comes to home buying and financing. Hey, this stuff isn’t taught in our institutions of higher learning.
Successful lenders will be the ones that educate and pre-qualify these buyers. Provide them with the online resources and information to help them determine how large of a loan they can get and how to best go about getting it.
These buyers prefer conventional loans to FHA and look to close more quickly than their grandfather’s mortgage. They work online, real-time, on their schedule, and at their convenience. Lenders need to comply. Otherwise, they’ll find a lender that does.
Let’s face it, loans will be tough to come by in the current market. You can’t let any opportunity slip by.
Here’s one…the new Millennial buyer. They need your products, services, and your knowledge. Be the expert and trusted advisor they want.
In past blogs, I’ve commented on the importance of social media. However, don’t overlook the human touch.
With all the technology they still want someone with which they can chat and get answers when they want. Loan officers still play a vital role in meeting their needs.
Be careful not to overlook the consumer’s needs while concentrating on high tech resources and trying to service Realtors. Technology can help your people be more productive, streamline the process while improving loan quality. But, for now, you still need to supply the personal touch to close the deal.
It’s the new Millennial Migration to homeownership. Let’s be ready to help them get to their destination.
