Today’s 18 to 34 year-old Millennial demographic is most definitely marching to the beat of its own drum. For the mortgage industry to attract their business, we’ll have to lock step, presenting mortgage deals in a way that works for today’s young mortgage customers.
A recent New York Times piece points out some of the ways this new generation of mortgage customers are reshaping the industry. One thing is clear — the brokers who are able to adapt are going to come out on top.
If you’re ready to jump in and court those Millennial mortgage deals, here are three things to think about.
Embrace the Technology
Millennial mortgage borrowers aren’t just wild about technology for technology’s sake. Millennials love technology because it improves the customer experience. Tech-savvy consumers have come to expect this. Whether it’s ordering food, hailing a ride, or buying a car, more and more consumers want a streamlined online process.
We’re not quite there yet, but we’re moving in the direction where even mortgage customers will be able to apply for and secure a mortgage right from their smartphone. I know that may sound terrifying for anyone who’s been in the mortgage business for a while, but that’s where things are going. If it’s any consolation, I assure you that Millennials are just as mortified of the paperwork nightmare that was mortgage lending before the digital age.
So what should you do?
Invest in software solutions that let your clients submit documentation digitally and interact with you via email and secure messaging, rather than in person meetings or by phone.
These kinds of tech tools are growing in popularity, which means there are now more products out there to choose from at lower price points. Additionally, big players in the industry are already getting on board with streamlined technological processes, meaning more and more customers are going to expect the same when they work with you.
Empower the Consumer
Millennials aren’t looking for sales pitches any more than they want to deal with mountains of paperwork. It’s no secret the generation is notoriously skeptical of traditional sales messaging. But that doesn’t mean they’re especially hard to reach — just that they’re a different audience with new expectations.
Empower them with information and a transparent process and you’ll win over this customer demographic.
Consider this truth: Both buying a home and refinancing for the first time can be daunting for these customers. But you know the requirements, rules, and processes backwards and forwards. Instill confidence in your prospects by putting accurate, plain-English mortgage info on your website. Let the prospect learn at their own pace and answer their most pressing questions themselves.
You’re empowering your millennial mortgage customer with the knowledge they need to complete their transaction. If you’re wondering, yes, that puts you and your brokerage services in a very favorable light.
What’s more, Millennials care more about transparent processes than previous generations. Some lenders are stepping up here, too, launching digital dashboards where applicants can track the progress of their loan application. Whether you go high tech with a minute-by-minute dashboard or just set up some automatic email updates, Millennial mortgage customers are going to appreciate the transparency and the effort.
Speed Up the Closing Process
Speed and reliability are important for Millennials. They expect an online process that just works, easily, every time. Online applications, documentation management, and dashboards can help efficiency on your end. But you’ll also benefit from modernizations happening across the board — from lenders to underwriters or a borrower’s financial institutions, the whole mortgage process is going online.
According to the Times article, it’s not just about you getting things done. Millennials are willing to help you help them, sharing the documentation you need to process their loan and close the deal, once you’ve won them over, that is.
Grow Your Mortgage Business with Millennial Borrowers
It seems like there’s a new story about the Millennial generation every day. Love them or hate them, this generation is already the largest segment of the U.S. workforce. It won’t be long before Millennial mortgage customers become the primary part of your mortgage loan business.
Yes, it’s true. This new generation asks new and different things of the mortgage industry. Some of the technology is daunting, even if it will streamline the lending process. But keep in mind, the businesses that survive will be those that adapt.
Your mortgage business has every opportunity now to be at the forefront of Millennial mortgage deals, as long as you embrace new technologies, empower your prospects, and streamline your closing process.