Millennials are Buying more Homes and Mortgage Brokers are Winning More Business with Real Estate Agents
Millennials are buying more homes than ever and Mortgage Brokers are winning more business with Real Estate Agents. According to a new report from Realtor.com, millennials are taking over the mortgage market in the U.S. Home-loan data analyzed by Realtor.com show millennials — defined here as the generation aged 19 to 37 — have purchased a larger share of mortgages than Gen Xers or baby boomers in the U.S. since early 2017.
New data reveal millennials are responsible for the largest share (42%) of new mortgage loans by dollar volume, narrowly surpassing Generation X for the first time, and there are two clear reasons why. Millennials as a group are buying more homes than ever, and, individually, they’re making lower down payments despite rising home prices, which require larger mortgages. To be sure, individual Gen X buyers are still taking on the highest loan amounts.
Millennials are savvy and more and more are choosing to work with a Mortgage Broker. Mortgage Brokers generally compete with big banks and online lenders for business every day. They’re winning more and more of that business because consumers realize that mortgage brokers are a great option to get a mortgage. A local mortgage broker will also educate consumers on the full picture, clearly lay out all the options available from multiple lenders and help them find the best possible deal.
Real Estate Agents Are Recommending Mortgage Brokers to their clients and here’s why:
- Mortgage Brokers serve the client, not the lender.
- They have wholesale partners with faster turn times than retail banks
- Hitting a contract date is at the top of the list.
- Real Estate Agents can be confident that when they write a 30-day purchase agreement, their loan will close on time–and that means they get paid faster.
- Brokers can also offer real estate professionals an advantage at the closing table by working with a lender who funds instantly.
- Funds are available before closing takes place so a borrower can get their keys and a Real Estate Agent can get paid once they sign with no further waiting.
- This takes a lot of the stress out of the closing process and makes a real estate agent look like a hero to their clients.
A recent survey showed that once a Real Estate Agent uses a Mortgage Broker, 90% would recommend that Broker to other homebuying clients. The same survey showed that, once a Real Estate Agent worked with a Mortgage Broker, they were 35% less likely to recommend a national bank to future clients.
The two biggest reasons why real estate professionals use Mortgage Brokers are their ability to shop around and the high level of service they provide. If a Mortgage Broker has access to five lenders, they have the ability to pick the best of the five.
Mortgage Brokers are back! Every day, more loan originators are realizing that an independent mortgage company is an ideal place to work because it’s the best place for a consumer to get a loan. If you’re getting ready to buy a home, give us a call at 303.779.0591 and let us help you to get the right loan, not just any loan.