Let’s talk about two topics not often associated with one another…millennials and the housing market.
Millennials are known for being completely dependent on technology, constantly in front of a screen, expecting instant gratification. The perspective they have developed is far different than previous generations. This reputation has, fairly or unfairly, created a number of misconceptions about millennials, especially with regards to homeownership and the housing industry.
While it’s true that millennials are experiencing more debt than their parents, they are certainly still interested in purchasing a home. In fact, according to Ellie Mae, millennials make up 35% of all homebuyers, the largest of any generation. Given the housing market share owned by this generation, it is more important than ever to be aware of the myths and misconceptions concerning their home buying experience.
MISCONCEPTION #1: The majority of millennials find a mortgage professional online, via search engine and/or social media.
FALSE. According to a recent survey by Ellie Mae, only 25% trust the internet with this decision. A personal referral is still the preferred way to connect with a mortgage professional. Millennials value communication, trust and transparency, which are harder to come by online.
MISCONCEPTION #2: Millennials want to buy their home entirely online.
FALSE. Close to 50% of millennial home buyers apply for a mortgage in-person. Roughly 30% start their application online but finish in-person.
They are looking for a more in-depth, one-on-one experience to feel more confident and comfortable about the mortgage process. Millennials can also leverage their love of technology along the path to homeownership with tools such as Axia’s Mobile App.
MISCONCEPTION #3: Too much debt!
FALSE. While debt is certainly a hurdle for many, the majority of millennials simply aren’t aware of expanded loan products and guidelines that have created different paths to homeownership tailored to unique financial situations.
At Axia Home Loans, we have created a loan experience that is designed to exceed the expectations of the millennial home buyer.
Source: Ellie Mae