“The first-time buyers are scooping up properties with 32 percent of all buyers being as such compared to only 27 percent one year ago,” Realtor’s most recent economic forecast states. “A lower fee on FHA
mortgages is helping.”
And with many of the big banks recently reporting staggering growth in the origination sector, originators should do whatever they can to win back some of that market.
Many of those first-timers are Millenials and with Gen Y-ers making up about a quarter of the total population in most states, it’s important to know how they expect to attain their first mortgage.
And for that, many will be looking online.
One place originators can reach this potential market is through social media, as 75 percent of Millenials have at least one social network profile.
And many Millenials were certainly be interested in a more holistic approach to their mortgage planning; many have steep student loan payments, and an originator who helps them manage all their debt – and not just their mortgage debt – will likely earn a client for life.
“When it comes to taking out a mortgage, they aren’t able to carry that mortgage payment because they have very chunky payments to make to the lenders of their student loans,” Svenja Gudell, the senior director of economic research at Zillow recently told The Atlantic. “So that’s certainly holding Millennials back along the way.”
Millenials currently make up a quarter of the workforce and many are preparing for homeownership – but the way they shop for a home will differ from their boomer parents. So what do originators need to know?