Top mortgage companies know it’s important to tailor the borrower experience to get a borrower into their dream home.
Millennial mortgage borrowers are an important target group for many reasons. They are currently the largest generation in America and will make up a large part of the home-buying population for years to come. They’re also the most educated and, thirdly, they have higher incomes than previous generations.
Therefore, lenders should work hard to anticipate millennial needs and adapt their practices accordingly.
Here are some tips to help mortgage lenders succeed in financing loans for millennials so that they can help them fulfill their homeownership dreams.
Policies that have traditionally been used to attract older borrowers might not work for millennials, such as having strict guidelines for minimum credit scores, debt-to-income ratios, and large down payments. Millennials typically carry much higher student debt than baby boomers or Gen Xers, which can make them appear riskier. However, millennial buyers also earn more money than older generations did at their age.
Millennial borrowers want to deal with lenders that offer flexible payment options, student loan repayment assistance programs, and programs for consolidating debt.
The millennial borrower experience is unique from other generations. For example, millennials have grown up in a more digital world with access to information at the touch of a button. This means they generally know more about the mortgage process and what to expect. They also tend to be very demanding of their time and want instant results.
One way lenders can make millennial borrowers happy is by offering a digital experience that meets these needs without compromising on security or efficiency, such as an online application system with a 24-hour chat service for client support.
Since millennials are used to technology, lenders should allow borrowers to submit their applications online or via their smartphones. This means that potential home buyers don’t have to waste time making appointments to see a loan officer in person.
A first-time homebuyer should be able to complete their loan applications online in minutes. They also want to receive updates via text, touch, or voice technology.
Millennials are drawn to lenders that send them personalized emails, texts, or other messages with reminders about upcoming deadlines and eligibility requirements so that they can find the right loan program for them.
Lenders should also customize loan offers for millennial buyers based on their unique needs. Sending a millennial buyer an offer that is tailored specifically towards them will certainly give the lender an advantage over other companies trying to attract this sought-after generation of borrowers.
Millennial homebuyers like to know exactly what they’re getting into, and lenders should provide millennial borrowers with all the information up front in an easy-to-understand format. Don’t overwhelm millennial borrowers with too much information. Instead, make your pre-approval process transparent and concise so they can get started right away on their home search.
Millennials are highly influenced by online reviews before making a financial decision, especially when it comes to the home-buying process.
Lenders should have an active presence in the online world so millennial borrowers can learn about you and your business. If you have a highly experienced team or help consumers build equity faster, millennial borrowers should know about it.
A strong, positive online reputation will also help millennial buyers feel good about making their home purchase.
For example, Capacity has chatbot functionality that can provide borrowers with information about:
Capacity helps millennial borrowers explore different loan options and compare them side by side so they can make an educated decision about the best financial solution for them.
Using Capacity means that loan officers can spend less time answering repetitive questions and searching for information and more time working on high-value tasks like marketing and closing loans.
Lenders can also use intelligent automation so they don’t have to manually perform tedious, repetitive tasks such as:
With Capacity, lenders can be confident knowing they’re offering an outstanding loan experience for millennial mortgage applicants.