Shopping for a mortgage is overwhelming to most people. It's a big commitment, and it's important for consumers to feel that they're getting a good deal, but more importantly that they're working with a reliable and communicative company. This is true for millennials more so than ever. Millennials are the generation that are accused of renting instead of buying, but for many millennials, it's not that they don't want to own a home, rather that they're already dealing with student loan debts and uncertainty about home ownership. In fact, Zillow Consumer Research reports that this group is more likely than any other generation to see a home as a reflection of themselves, rather than a financial investment. They're more likely to forgo a starter home, and instead buy their first home at a higher price for a larger property.
In order to reach this group, it's important to have concise data in order to pinpoint millennials who are going to be interested in your offers, but it's also important to understand who this generation is, what they look for in a mortgage, and what kind of marketing they respond to best.
So what are the most important factors that influence consumer decisions about who their mortgage lender is?
In their early twenties to mid-thirties
Leading the market in home sales at 36% of home sales being made by millennials
- Digital Natives: This segment of the population grew up with the Internet. Their first move in almost any decision is a Google search, or social media question posed to their online friends about who to trust, where to go, and what to expect. Make sure you're visible online by using best SEO practices in order to optimize your search engine visibility, as well as staying active on social media with explanatory blog posts, as well as setting up alerts for when someone asks "Where should I go to get my first mortgage?" so that you can be ready to introduce yourself and make a great impression.
- Customized, Personalized, and Stylized: This age group places a great deal of emphasis on custom and personal messages. Blanket marketing is not going to impress them. Taking the time to reach out directly, instead of through automated emails or calls, is going to be key to winning their trust and loyalty. Targeting not only by age, but also by income, dwelling type, and loan type is going to be extremely valuable in creating a campaign that makes them feel like you've done your research and understand their expectations and needs. This generation also prefers direct contact - 30% prefer speaking to an agent on the phone, while 24% still prefer to meet with their agent in person; meaning phone calls and offers to set up meetings are going to attract this group.
- New to the Game: Millennials are of the age group that has just begun their search for a mortgage. They may have not had the information that they needed if they currently have a mortgage, and would be good candidates for refinancing. If you want to have an impact on this audience, it's beneficial to create a campaign that really focuses on explaining the process. Checklists, booklets that lay out the process, comparison charts...all of these tools will be extremely beneficial to boosting your chances with attracting this segment.
What do Millennials Want From Their Mortgage
1. Low Down Payments: This generation is burdened by high student debt rates, with 54% of those struggling with a saving for a down payment citing student loans as the reason. Millennials will pay a higher rate over time in order to secure an affordable down payment.
2. Fast and Easy: Millennials move quickly once they've made the decision to purchase a home. Being able to find a lender online, do their research, and then move forward quickly, while being walked through the process of application and payments are some of the most important factors that they'll look for in mortgage lenders.
3. Conventional is Popular: 56% of buyers in this group used a conventional mortgage, while 27% used an FHA loan. Making sure that they understand their options will boost their trust in your transparency and likelihood to recommend you to a friend later down the line.
Getting Precise Data
In order to find the millennials that are best-suited to your offers, you want to make sure you're segmenting correctly. The first step is a basic search, where no firm offer of credit must be extended. At this point, you'll be able to understand if the segments you're using will enable you to provide this valuable target audience with a home equity or refinance. With Altair's online count system, you can quickly and easily create your own custom list with over 51 million records of prospects, with the ability to flag LTV, and VA loans. Check it out today and get started!