People aged 25 to 34 now make up the largest percentage of active homebuyers. And the vast majority of them rely on financing to make the purchase. Yet these millennials are more wary than their Gen X or Baby Boomer peers about taking on the financial responsibility.
As a lender, you can successfully guide them through the homebuying process, by addressing some of their key concerns.
Will this purchase fit into their lifestyle?
Many millennials are first-time buyers. They are unsure about the whole buying and financing process. They want personalized, individual support from their lender.
You can help by talking with them. Consider scheduling time with them early on. Explain the ins and outs of the mortgage process—what happens, when it happens, and what it costs. Listen to their concerns and answer any questions.
Is this the right time for them to buy?
Many millennials have delayed major life events, like getting married, starting a business, or buying a home. They may be paying off student debt or have fluctuating finances that make them cautious about taking on a new mortgage.
You can help by taking the time to carefully explain the terms of any loan. Ask them about their current circumstances and really listen. Then help them understand how a mortgage would impact their existing financial commitments.
How can I make this a positive experience for them?
Studies show that most millennials value experiences over material items. As a lender, you can make the home buying experience a positive one by demonstrating your concern, knowledge, and expertise. Make your relationships with them positive by customizing the information they receive based on their specific goals and needs.
Cultivate a social media presence that is both professional and personable. Millennials may run a quick background check to see what kind of person you are. Build trust and loyalty by communicating frequently and responding quickly to their questions.
Consider connecting millennial clients with others who can talk about their lending experience. That real-life connection can help them process the emotional aspects of buying a home.