With more Millennials joining the ranks of first-time home buyers, their unique approach is forcing changes to the traditional mortgage process.
The Millennial Generation – and America’s biggest generation yet – practically teethed on evolving technology and multitasking. The companies that can go where they hang out – the Internet – and connect with them there will succeed by being accessible through technology. This is the big difference and it’s the way millennials view the world, interact socially and live their lives.
Story of a Purchase
This tale of a property purchase illustrates the ways millennials are changing the way we do business.
A Millennial couple had been house hunting for nearly a year before they found a suitable property. The competitive market in the major suburban area they had chosen required immediate action. Tod and Julia, in their early 30’s, had to make an offer quickly and as first-time home buyers, they needed proof of financing.
For help, the couple did what the millennial generation always does, they turned to the Internet. A friend suggested an online lender and they were able to learn what the mortgage process entailed on the lender’s website
The couple (he’s an IT engineer, his wife a teacher) had to provide some employment information and had a prequalification in less than 15 minutes. When the loan officer contacted them a little later, they uploaded the documents necessary for pre-approval.As the mortgage process was so quick and easy, the couple could submit a formal offer in less than a week. They had their offer accepted very quickly and were able to get a 15-day close; much faster than the competing offer.
The millennial generation (ages 18 to 34) are driving swift changes in the mortgage process, an industry traditionally stuck with time-consuming paperwork. The millennial generation of home buyers is the first to consist of people who grew up with technology and have an innate distrust of traditional companies such as big banks. If lenders are looking to engage this generation, the best way is to take their business online.
As lenders move to meet millennial expectations they’re implementing technology that allows borrowers to submit documentation digitally. This efficiency improves the overall customer experience. These changes are a priority for nonbank start-ups competing for young, tech-savvy borrowers who want to buy a home using their smartphones.
Company websites that are informative and easy to use, leave customers feeling empowered, not being “sold” to. Lenders need to take note that this do-it-yourself generation looks to the Internet for tools to get information. Because millennials value transparency and want to know where their loan is in the mortgage process, companies are developing digital dashboards for customers to track their loan.
Millennials anticipate a quick, dependable route in the online marketplace and with the mortgage process; they’ll do their part to facilitate an application. While, they may choose their lender carefully, once the relationship is in place, they’re extremely trusting with sharing necessary information for the loan process to move smoothly.
This new wave of millennial customers has very little tolerance for the paperwork nightmares that existed in the traditional mortgage industry. The mortgage process can only improve for everyone as these new, efficient standards make their mark on mortgage industry lenders