A Millennial’s Perspective On MortgagesI thought that at this point in my life, as a 21-year-old real estate finance major, the concept of securing a mortgage wouldn’t be so foreign to me. Sadly, this isn’t the case. When I began my internship at Quicken Loans, I quickly realized how little I knew about the steps it takes to get a loan and purchase a home. The jargon involved with the process and all the different loan types – it might as well have been written in Mandarin. After a week of being in the office, I’ve now gained enough familiarity with the process to somewhat understand the ins and outs of the business.
Like anyone else who has been in the residential lending business, this experience will certainly put me more at ease when taking out a mortgage in the future, especially one that’s serviced by QLMS. Unfortunately, many young people have no such knowledge on the topic and are daunted by the thought of taking on such massive liability. Here are some characteristics I believe a strong mortgage broker should have in order to excel with the millennial audience.
Keep It SimpleAccording to the National Association of REALTORS®, first-time home buyers accounted for 33% of home purchases in 2018. These newbie home buyers represent a significant section of the market and are a reminder of why it’s so important to recognize your target audience and cater to their needs. Walk around any college campus and you’ll no doubt overhear students griping about “real world things” they don’t teach you in class, specifically concepts such as maintaining good credit and getting approved for a mortgage. Many millennials who were pondering these same questions only a few years ago are now entering the housing market and they’re still a little perplexed. The variety of loan options and the multistep approval process can get very confusing. In order to help millennials, get more confidence and boost their understanding, I recommend being straightforward – simplify the process and explain it in layman’s terms. Do this and you’ll attract more young home buyers.
Explain The Value Of A MortgageAnother smart technique to guide millennials into home buying is to convey to them the advantages of a mortgage versus monthly rent payments. It’s important to show younger clients how they can save by taking the leap from tenant to homeowner. Try incorporating an online calculator to compare the two investments. A striking, simple visual can also be a very useful tool.
Understand Where They Are In Their LifeUnderstand that many new home buyers may still be trying to kick their student loans or might find themselves in unique financial situations as they continue to experience major life events such as marriage and children. Let them know that you understand where they’re at in their life. Confidently present various mortgage options that QLMS offers and show them that homeownership is possible even when they have student loan debt. Position yourself as a pro at developing flexible solutions and your clients will be appreciative. They’re looking to you for expertise. Deliver it. Anything you can do to educate your client will increase trust and loyalty to your personal brand.
Understand Fears And Develop TrustKeep in mind that the millennial generation grew up during the housing crisis and they’re often more skeptical of large financial institutions. Although potential homeowners may be eligible for mortgage approval, many have serious concerns about taking on so much debt. Despite the seemingly obvious long-term financial benefits of owning a home, first-time home buyers will need trust before they jump in. Develop a good standing relationship with your younger clients by being reliable and open with them about their options. Lay everything out on the table and figure out what aspect of taking on a mortgage may be holding a client back. What’s causing hesitation? Debt? A big down payment? Unclear process? Confusion about loan options? Understanding their fears will allow you to develop a strategy to alleviate them.
Social Media PresenceIn order to implement these strategies to assist clients, you must acquire them first. This is where strategic marketing can make a big difference. The stronger your marketing, the larger your pool of potential clients will be. In today’s digital age, the easiest way to succeed is by having a big online presence. Digital marketing is more than just creating an informative website and appearing on Google search – you also need to be active on social media. Find new ways to connect with consumers instead of waiting for them to find you. Millennials, like myself, access content through various social platforms such as Instagram, LinkedIn and Facebook. If used correctly, these platforms can be a gold mine for brand awareness. To learn more about how to successfully operate these accounts, check out our social media how-to guide on the Marketing Hub.
I may not be a mortgage guru … yet. But being a millennial, I know that when you put your trust in an expert who is willing to listen to you and understand your concerns, it goes a long way. Keep it simple. Explain, but don’t get lost in the weeds. And be active where we are (Facebook is calling). Utilize the resources that QLMS provides, including how-to guides, social tiles and customized presentations. Your millennial clients will thank you.