With Millennials now entering the home buying market, lenders are looking for ways to best serve their needs.
Some recent studies turned up some important and surprising results. For the most part, this new high-tech generation isn’t much different from prior generations when it comes to mortgages.
Yes, this group is more tech-savvy and willing to use technology in their process; online applications, electronic information gathering, and communications.
But, when it comes right down to it, like most home buyers, they want someone with experience to guide them through the lending process. LO’s rejoice!
Some interesting facts:
- Only 30% of Millennials used a combination high-tech and personally assisted process for their mortgage
- 20% of GenXers used the same process
- 35% of the Millennials used FHA financing (the old fashion way)
- Only 11% of all borrowers applied for their loans completely online
- While 57% still applied in person!
What’s most important when it comes to technology?
- 35% of Millennials say it’s security, not speed
- 23% rated speed with 12% for transparency
- Both GenXers and Baby Boomers are looking for speed.
So, if you’re looking to service the new generation of homebuyers you need the combination of
- Good, experienced LO’s
- Technology for online applications and processing
- Knowledgeable support staff
- System security with loan information and process transparency
- FHA and other low down payment programs
- Speed and accuracy
Not much has changed. Consumers know this is a huge transaction and they want all the help and advice they can get. They want it clear, concise and fast.
They want someone they can trust to work with them lighting the right path while assisting them along the way. They want to communicate on their time – electronically with quick response and information.
No more snail mail or waiting days or weeks for answers. They want their information now, and they want it right.
Technology plays a big role, so far, it’s not the lead role. It needs to be there and sufficient to make the LO’s and support staff more efficient and effective.
The right balance is needed to serve the consumer’s needs while providing the lender with reduced cost to obtain and process loans.
The need for loan quality and compliance hasn’t changed. If anything it is more important today than ever before.
The main thing is: The customer is still king. Find out what they want and deliver what they need. It all comes down to good old fashion customer service (assisted by technology).