We have all heard the same narrative about Millennials: They have a significant amount of college and credit card debt. They are putting off significant milestones, such as marriage and children. Also, they really like avocado toast. All of which prevents them from wanting to enter the housing market. Right? Well, not exactly.
Millennials are the largest generation in U.S. history and have been the most active homebuyers for five years in a row. According to the National Association of Realtors, Millennials accounted for 36 percent of home purchases last year, surpassing Baby Boomers (32 percent) and Gen X (26 percent). So, what should originators know about this generation in order tow in their business?
It is no secret Millennials live online; brick and mortar institutions are inconvenient for them. A recent study by Computer Services,Inc. (CSI) and The Center for Generational Kinetics (CGK) found 35 percent of Millennials do not visit banks due to limited branch hours and 54 percent of Millennials believe they can perform any necessary bank functions online. In fact, they have been told they can push a button and get a mortgage. So, they have come to expect a simple, digital mortgage process.
Originators today know Millennials are tech-dependent.According to a recent report from GlobalWebIndex (GWI), 68 percent of Millennials selected their smartphone as their most important device. Laptops came in a distant second (16 percent) and desktop PCs third (14 percent). Also,on average, they spend nearly four hours a day online. Additionally, they prefer to communicate via text, email, and social media (in that order, based on research from CGK).
GETTING THE TECH RIGHT
This makes it critical for originators to have the right technology in place to better engage with Millennials at the time they are ready to buy a home. A mobile-friendly point-of-sale (POS) solution allows Millennials to easily start the mortgage process on their smartphone, tablet or laptop—where they want, when they want, and how they want it!
A smart POS prompts borrowers with questions that apply to them based on previous answers and skips questions that are not applicable.Originators can then use this data to work with the borrower to determine eligible products and pricing. All of this makes the mortgage process easier,quicker, and more efficient. Originators that adopt POS technology not only remain competitive, but also experience greater success with Millennial borrowers.