Did you know that millennials have been the single largest proportion of homebuyers in the United States for the last six years? According to the NAR Home Buyer and Seller Generational Trends study of 2020, millennials made up 38% of all US homebuyers. Perhaps that is partially due to the technology that millennials have at their fingertips, making the search for a mortgage and the ideal property easier than ever before.
Online tech has transformed the way millennials shop for mortgages
Millennials are using digital tools to their advantage for calculating mortgage rates and managing their finances. For instance, today, you can find an online mortgage calculator within seconds to work out how much your monthly payments are likely to be on properties of different values, taking into consideration your earnings and financial position. Gone are the days of needing to make an appointment with a mortgage lender in person simply to get a ballpark figure of how much a mortgage could cost. Millennials can make calculations extremely quickly these days. Without the technology of the internet, that would not be possible.
But the biggest online thing that has made a difference to mortgage shopping for millennials is comparison sites. As with mortgage calculators, it is now quick and easy to compare mortgage rates online, so it is no wonder that online comparison sites are the first place that millennials go to in order to shop for the best mortgage.
The mortgage application process is sped up thanks to technology
Technology is not only altering the way people search for mortgages. It is also changing the way people apply for and get approved for mortgages. In recent years, new mortgage lenders have sprung up online, making it easier and quicker to get a loan than ever before; and millennials have been taking full advantage. Some mobile services even allow prospective borrowers to apply for a mortgage within minutes.
Processes are able to be sped up thanks to things like automation technology. For instance, verifying things like income and employment are done automatically and things like underwriting can begin as soon as a person fills out an application. Some online mortgage lenders even let customers log into their bank accounts via their platforms, thus speeding up the process even more.
Home buying is easier with technology
Technology has certainly helped to quicken the mortgage comparison and application processes and make them so much simpler, but tech is also making the act of buying properties much easier. In turn, that means millennials are more likely to apply for mortgages. A few decades ago, searching for your ideal home was more laborious than it was exciting. Without the internet, you would have to visit real estate agents and wait for photos of properties to come in the mail. Today, not only can you see dozens of potential properties within seconds on online real estate platforms, but you can also take virtual reality tours of the properties you are interested in.
Indeed, VR tours are one factor that has been crucial to millennials deciding to take out mortgages. According to a poll by Coldwell Banker Real Estate, 77% of those surveyed said they wanted to take VR tours of homes before making the decision to visit the properties, and 84% said they wanted to see video footage before they would visit potential properties. Real estate companies are in the process of revolutionizing how they sell homes online. Many are introducing social media tools into the mix, such as hosting real-time open house events with tools like Facebook Live.
People of all ages are starting to embrace technology when shopping for mortgages and homes, but it is millennials who have paved the way for the emerging mortgage shopping climate.