The next generation of homebuyers has different expectations, financial profiles, and needs than previous generations. What does that mean for lenders hoping to reach Millennials and Gen Z?
You may have to adjust your approach, from how you market your services to how you qualify borrowers.
According to the National Association of Realtors, Millennials made up 38% of all homebuyers in 2024, making them the largest generational segment in the market. Among first-time homebuyers specifically, 71% of younger millennials (ages 26-34) and 36% of older millennials (ages 35-44) were purchasing their first homes.
These first-time homebuyers prioritize a positive customer experience and accessibility when choosing a mortgage broker. Making your services accessible to first-time homebuyers will create a new level of brand awareness for your agency and heighten your popularity among the generation of the future.
So, how do you, as a lender, address these differences?
Table of Contents
1. Invest in a Website
It should come as no surprise that the future of lending revolves around a digitized framework. An easy-to-use website is one of the most practical and powerful assets you have for mortgage lead generation. A poorly organized or difficult-to-navigate website is a roadblock to first-time homebuyers who value the convenience and accessibility of online information and applications.
Here are three key components to a well-crafted website:
- Simple access to the application processes
- Transparent mortgage and home equity loan rates
- FAQ section
In general, applications that require little or no physical paperwork are more attractive to younger borrowers. But remember, the first time doing anything can be overwhelming, so use your website to lay out a step-by-step guide for them to follow.
Many first-time homebuyers feel like they’re struggling in all the unfamiliar terminology, numbers, and conditions. A successful lending site should help educate and guide inexperienced homebuyers through the loan process. Popular lending websites often offer learning resources and contact information to help decrease the stress and pressure on new homebuyers.
2. Have a Social Media Presence
If you want to attract the youngest generation of homebuyers, you need to be where the borrowers are, namely, on social media. Advertisements on Facebook, Instagram, YouTube, Twitter, and TikTok reach first-time homebuyers much more effectively than television or radio ads these days.
Maintaining an active social media presence shouldn’t feel like an obligation. It should be fun, and it’s one of the best ways to build brand recognition with logos, color schemes, and photography.
Millennials may use social media to compare you to other lenders, so it’s important to put your best foot forward on profile pages and share helpful content that shows your expertise, values, and personality. Social media instant messages or post comments are also common ways for potential borrowers to make first contact with lenders, so be sure to offer quick responses to questions posted online. This will give you the benefit of being the first lender in contact with potential clients.
3. Look Beyond Credit Scores
A National Association of Realtors report found that 50% of people who have yet to purchase a home blame student debt for delaying a mortgage. As you know, homebuyers who are new to the market often have lingering student debt and maybe even a few other large purchases affecting their credit score. In fact, 43% of younger millennials reported having student loan debt with a median balance of $30,000, according to NAR. Their scores can misrepresent their actual financial situation.
Although it requires more time and effort, it is worth diving deeper into a person’s background, education, and employment history. Looking beyond the surface of their credit score may reveal a broader picture of their situation.
Smart Credit Report Strategies
Not every borrower needs a tri-bureau credit report right from the start. Certified Credit’s SmartSelect solution lets you determine eligibility efficiently by pulling one, two, or three bureau reports based on your criteria. This approach helps you:
- Avoid wasting money on unnecessary bureau pulls
- Qualify more borrowers cost-effectively
- Make faster preliminary decisions
- Reserve comprehensive reports for serious applicants
Credit Score Improvement Tools
When a borrower falls just short of qualifying, Certified Credit’s score improvement tools can help bridge the gap. These solutions include:
FICO® Score Mortgage Simulator – Model “what-if” credit scenarios to support loan qualification and provide personalized action plans that outline the most effective steps for score improvement.
Rapid Rescore – Help applicants secure a better rate or term by re-calculating their score based on improvements they make to their credit.
ScoreNavigator – A suite of tools including Mortgage Action Plans, Target Score Simulators, and Money Simulators that identify the quickest path to reaching a target score.
These tools can mean the difference between a declined application and an approved loan, turning more prospects into qualified borrowers.
Verifying Income for Non-Traditional Workers
Alternative credit data points such as rent or utility payments paid in full and on time, regular savings account deposits, and asset ownership may solidify a borrower’s credibility despite past credit missteps. But income verification presents unique challenges for the growing number of gig workers, freelancers, and non-W2 earners.
For borrowers with traditional W2 employment, Certified Credit’s Cascade VOE provides quick, automated verification. But for the increasing number of self-employed borrowers, freelancers, and 1099 workers, you need a different approach.
That’s where 4506-C tax transcript verification comes in. Certified Credit offers Halcyon Tax Wallet, which enables you to quickly verify income for:
- Self-employed borrowers
- Freelancers and gig economy workers
- 1099 contractors
- Those with side hustles supplementing W2 income
- Any borrower with non-traditional employment arrangements
By accessing tax transcripts directly, you can confidently verify income that doesn’t show up on traditional pay stubs or W2s. This helps you tap into a growing segment of younger workers who increasingly cobble together income from multiple sources, without the paperwork headaches or long wait times.
Yes, there is still an elevated level of risk inherent in offering a loan to someone whose credit score is sub-par or whose income is non-traditional. Still, if you are willing to accept more risk with the right tools and documentation, you may make mortgage loans more accessible to the largest population of borrowers.
4. Be Personal, Smooth, and Seamless
What will your clients tell their friends about the lending experience with your agency? Will it be a gripe about how slow and cumbersome the process was? Or, will it be an enthusiastic plug for your fantastic customer service? Attracting the younger generations of homebuyers means putting extra effort into a seamless and personal experience for the borrowers.
According to Homebuyer.com research analyzing 2024 data, early Millennials (ages 25-34) bought 953,267 homes in 2024, more than any other age group. These buyers expect modern, efficient processes. They’re digital natives who value transparency, quick responses, and technology that simplifies complex processes.
The lending experience should feel collaborative and supportive, not transactional. Younger borrowers appreciate lenders who take time to explain options, provide educational resources, and offer tools that help them make informed decisions. By investing in technology that streamlines the application process and staff training that emphasizes customer service, you can create the positive experience that leads to referrals and repeat business.
5. Offer Financial Literacy Help
As credit lenders, promoting financial literacy is a win-win. Clients feel empowered by their new knowledge, and you build a glowing reputation for being a helpful and transparent partner. There are several ways to champion financial literacy at your agency:
- A series of YouTube videos outlining the process of buying a house from start to finish
- A glossary of definitions and explanations of credit, mortgage, and interest topics
- Infographics and blog articles answering FAQs
- Social media posts that present useful information
- Guiding homebuyers with credit score improvement tools
Offering valuable information without any expectations establishes you as a trusted, helpful resource and perhaps a trustworthy lending partner when the time is right.
Financial education is particularly important for younger homebuyers. The median age of first-time homebuyers hit 38 in 2024, up from 35 in 2023 and nearly a decade older than in the 1980s, when the typical first-time buyer was just 29. This delay often stems from uncertainty about the homebuying process, confusion about financial readiness, and intimidation by the complexity of mortgage products.
By demystifying the process and building borrowers’ confidence, you can help qualified buyers take the leap sooner, and ensure they choose you as their lending partner.
The Takeaway
Attracting the next generation of homebuyers will always be a moving target. As a lender, the challenge is to stay up to date with where potential borrowers seek information and their priorities.
Having online applications and engaging with people through social media platforms is quickly becoming the new normal and the future of mortgage lending. Offering financial literacy materials on these platforms will not only help you do your part for society, but it will also increase traffic and build your brand’s reputation.
But it’s not enough to simply have an online presence. You need the right tools to say “yes” to more borrowers. That means:
- Using flexible credit reporting strategies that control costs
- Offering score improvement tools that help borderline applicants qualify
- Providing verification solutions for non-traditional income sources
- Creating a seamless, technology-enabled customer experience
By implementing these five strategies for reaching the next generation of homebuyers, you can achieve your goals and meet borrowers where they are, helping them thrive because of your expertise in the industry and the right technology solutions that make approval possible.
Sources:
National Association of Realtors. Home Buyer and Seller Generational Trends. https://www.nar.realtor/research-and-statistics/research-reports/home-buyer-and-seller-generational-trends
Bankrate. Millennial Homebuyers: Statistics And Tips. https://www.bankrate.com/mortgages/millennials-and-homebuying/
National Association of Realtors. The Impact of Student Loan Debt. https://cdn.nar.realtor/sites/default/files/documents/2021-the-impact-of-student-loan-debt-report-executive-summary-09-14-2021.pdf
Homebuyer.com. Home Buyer Statistics by Age: Gen Z, Millennials, Gen X & Boomers (2025). https://homebuyer.com/research/home-buyer-statistics
NBC News. Many first-time homebuyers are pushing 40 as millennials wait in vain for a better market. https://www.nbcnews.com/business/real-estate/many-first-time-homebuyers-are-pushing-40-millennials-wait-vain-better-rcna201786
