As I’ve started dipping my tentacles into your vast credit union mortgage pool, one group of members consistently comes to the forefront: Millennials. The first thing I thought of when I heard about them was outer space and the Millennium Falcon, but I was quick to realize I was way off.
Your millennials are young adults born between Earth years of 1982 and 2000. They are ingrained into what is often called the Information Age, and they are fluent and comfortable with the use of technology and social media. As a result of this, they are excellent at finding information and data through various online resources.
What some of that data shows is that only one in three millennials owns their own home, and many of the reasons why the majority aren’t home owners are disheartening and, in some cases, flat out misinformation.
Millennials believe they can’t afford a home because of the heavy load of student debt they carry. This student debt is keeping them from accruing the required 20% down payment, and the rules and requirements around mortgage lending simply put home ownership out of reach. Or so they believe.
Much of this information they’re accruing is not reflective of the true real estate market and mortgage lending or, in the case of the “required” 20% down, is simply wrong. Sure, we know that, but how do we convince millennials that they are closer to home ownership than they realize? You need to start by speaking their language.
Throughout my interstellar travels, I’ve learned many languages, including several that are spoken right here. Millennial speak is basically English with a heavy saturation of generational lingo, most of which is orbiting around their core communication channel: Digital.
While I don’t suggest immediately running up to your local establishment of higher learning to enroll in Millennial Speak 101, I do highly recommend the frequent and ongoing use of the digital channels they love, including social media, videos, email, texting… these all produce trajectories directly into your millennial membership base.
And simply using these channels is not enough. Your messaging needs to be frequent, super timely and straight-forward. You need to communicate to your audience in the way they most want to receive it, and timely digital communications is the millennial sweet spot.
Once we establish these channels, step back and take a look at the home buying process from the millennials’ perspective. I see it in four unique stages:
- The decision is made to pursue the purchase of a home – where do you start?
- To purchase a home, you need a mortgage… what is THAT?!
- Where do I get a mortgage? Can my credit union help?
- With research and preparation complete, it’s GO TIME!
So, looking at the first stage, how can you help millennials get started? Here’s a very likely scenario: Your millennial member is browsing for homes, finds one they fall in love with and gets jolted by sticker shock! They are confident in their financial stability, but that’s a lot of money. It’s time to educate them on the process and how you and your credit union can help.
Using the channels previously discussed, let them know that you are here for them while providing an exceptional personalized experience. They will have TONS of questions – reassure them that you have answers and can help make sense of this thing we call mortgage lending. Service is a credit union strength, and you can earn their trust.
Recommend that they start getting organized immediately. No, they don’t have to pick up and clean their pod (i.e., their house, although it could probably use it), but rather, tell them about the forms and documents they’ll need to gather in order to apply for a mortgage. These include recent pay stubs, tax documents and bank statements. By providing a list of these items, you’ll help fend off a lot of headaches and frustration moving forward.
Most importantly, encourage them to consider how this purchase will impact their lives, both the positives and the negatives. You want what’s right for your member, and transparency is the key. Trust me, your millennial members will truly appreciate it.
Much like my trip to your planet, home buying is a journey, especially for those new to the process. In the coming weeks, I’ll dive into the next three steps of the millennial’s home buying process. In the meantime, remember that by working together with your millennial members, you will take it a fantastic journey worthy of sharing across every social media platform… and share they will!