What Banks Offer first Time home Buyer Loans

In the first three months of 2015, banks enjoyed increasing lending sophistication. In the first three months of this year, Chase said it had borrowed 45% more than in the previous year. Fargo, the country's biggest lender of loans, also recorded a significant 36% rise in the number of loans taken out. However, interest rate levels on loans began to rise in May, leading to a strong decline in the number of requests.

Striving to fight this slowdown before the industry's most important purchasing seasons, marketing specialists have reached prospective home buyers through new conduits using a wide range of messaging and tactics, along with the creation of new applications and alliances, presumably in an attempt to target the new Millennial home buyer.

Of course, in today's electronic era, mortgages sellers turn to e-mails for acquisitions and cross-selling activities. These e-mails were received by an estimate of 20% of receivers, with a reading rate of up to 40%. On the basis of e-mail reading advice, prospective home purchasers seem to be susceptible to these training notices.

Focusing on the new home buyer is crucial in today's market, especially as the MDs are the first home purchasers in the nation and signal an increasing need for individual care and finance. Milennials have observed house price falling sharply - what other generation have not seen - and are therefore shy of purchasing a new home.

Nationwide, the number of first-time buyers has fallen to 27% of all home buyers, from about 40% before 2007, despite incredible low interest levels. From the millennials with a recent hypothecary, just over half have obtained their hypothecaries from a major financial institution, while only 30% of younger millennials between the ages of 18-34 have done so.

The younger group is much more likely than those who are older (with the exclusion of those between 55 and 64) to have a loan from a small joint stock company. At least in part, this is due to Millennials' tendency to build a close bond with their own finance group. At Chase, we were pioneering in commercializing home loans to new home purchasers, and emphasized customization and learning through the establishment of our My NewHome application, My Home educational site, and YouTube canal.

It sent e-mails to current clients via its home buyer workshop and called it "My New Home Webinar". "The e-mail is aimed at first-time buyers and provides professional advice, practical samples and detailed explanation, as well as a listing of issues the receiver will be able to grasp after visiting the seminar. Banks sent an estimate of 5 million clients an e-mail via the onlineinar, resulting in a 19% reading throughput.

In order to increase reading rate, Chase also personalised the e-mails by inserting the recipient's name in the reference line. Fargo Wells also markets mortgage products in a creative way and sends e-mails with the following subject: "Take the first steps towards purchasing a new home. "The e-mail provides a free home buyer guidebook and an on-line course to inform new home buyers about the new home purchasing procedure and preparation.

Others e-mails used the same topic line, but then also contained messages about how Wells Fargo could help in every part of the purchase process: scheduling, purchase and ownership. Both e-mails had an impressing 100% boxing and reading success of 30% and 38% respectively. No matter what the rise in interest or the situation in the property markets, sellers must keep looking at how to sell mortgage loans as consumer access to electronic media increases.

They are a sustainable resource for generating leads, especially when it comes to the much sought-after millennials. At this point, the challenges are to find ways to attract new home purchasers in unprecedented and diverse ways while building stronger relationships with them. Good for the banks is Millennials' willingness to do better deals with their current banks and expand the relationships.

However, as recent millennials show a penchant for joint banks, the bigger banks must work harder to build a stronger bond from the time of takeover. Whilst the mortgaging lifecycle is a highly individual lifecycle experience, there is a way to take advantage of the online age. Apart from building mortgage-specific applications, banks might consider adding mortgages and training to their current bank applications.

In addition, the educational effort could be expanded beyond existing effort to Google Hangouts and Tweet Chats.