Selling Mortgages to Millennials
The millennial generation is comprised of over 80 million Americans – the largest generation in history. These powerful consumers shop differently than the generations before them, making your job as a mortgage professional a bit tougher. When shopping for a home, millennials want to feel supported in a number of ways. It’s your job to understand and address their desires.
Follow our six tips for mortgage professionals to tap into and capture more of the growing millennial market.
Tip #1: Understand Their Debt
Millennials are the most educated generation in history. With this education comes an unprecedented amount of student loan debt. Saving for a down payment on a home is therefore that much tougher for debt-laden millennials.
The real estate market is responding to the needs of millennials by offering low down payment mortgage options for qualified borrowers, which can require as little as 3 percent of the purchase price of a home as a down payment. No down payment mortgage options are starting to appear, as well.
Help millennials understand that buying a home is possible – even for people with significant debt. Present young buyers with reasonable mortgage options and work side-by-side through the entire application process to gain their trust.
Tip #2: Introduce Yourself Online
Millennials are known to conduct thorough research before committing to anything. Long before they reach out to a particular mortgage professional, they have most likely investigated the entire home buying process and what options might be available to them. Millennial buyers may already know what mortgage path they’d prefer to take and simply want to find the expert who can help them make the purchase.
Millennials want to feel confident in the mortgage professional they select, and they have the resources to discover more about you than you may ever know about them. Word of mouth will no longer cut it. You need to have a reputable and robust online presence that appeals to millennials, from your company’s website to social media platforms and proprietary apps.
Creating company profiles on the biggest social platforms and consistently interacting with potential buyers to answer questions and increase engagement will allow you to capture more leads and build trust with potential millennial buyers at the same time. Look at your website. What information are you providing to potential customers that no one else is offering? This kind of added value will draw millennials to you over a competitor.
Tip #3: Use Technology to Your Advantage
Millennials expect easy and immediate communication through email, text and instant messaging instead of traditional phone calls. These buyers want unobtrusive updates on the status of their approval every step of the way. Use technology to provide virtual options for traditional services, like offering online home tours and building mortgage apps that connect and inform all involved parties throughout the entire home buying process.
You should also consider using technology to streamline and cut down on paperwork, which ensures easy access to important documents and appeals to millennials’ concerns for the environment. Staring at a stack of papers can leave anyone feeling overwhelmed. Make the process as easy to understand and manage as possible.
Tip #4: Be Fast
Don’t delay. Millennials live in a fast-paced world full of instant feedback, and they want professional help that works the same way. Waiting even one day to reply to your client is waiting too long. Respond to millennial inquiries quickly, and be sure to provide accurate, thorough and efficient answers to their questions.
Tip #5: Be Transparent
When selling mortgages to millennials, it’s essential to keep them well-informed. Millennials expect honesty and want full disclosure during each step of the process. If you aren’t the first person to provide important information when they need it, you will quickly lose their trust when they find out.
According to a study done by Salesforce, almost one quarter of millennials will completely boycott a company after just one bad experience. Increased transparency is another advantage of mortgage apps and digital dashboards, where millennials can track their loan and access information whenever they want.
Tip #6: Be an Expert
Millennials may have done their own research, but they have come to you to close the deal. Maintain your professionalism without making it sound like you’re trying to make a sales pitch. Millennials want your guidance to get the right mortgage and the best home for them. Prove your expertise with information millennials can’t get anywhere else, and you’ll be well on your way to earning both their trust and their business.