Mortgage Conversations Now Precede Realtor Meetings for Half of Young Buyers

Written by:

Rudi Davis

Date:

23 Sep 2025

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Mortgage industry expert warns of fundamental shift in homebuying journey that could reshape realtor-lender dynamics

A dramatic shift in homebuyer behavior could upend traditional real estate relationships, according to Bruce Gehrke, Director of Lending Intelligence at J.D. Power. “Up to 50% of younger borrowers are now talking to lenders before they talk to real estate agents,” Gehrke says, highlighting a trend that “turns that relationship on its head.”

The Early-Engagement Revolution

According to Gehrke, this transformation in consumer behavior signals a fundamental change in how people approach homebuying. “What we’re seeing in the responses we’re getting is about understanding this process, understanding where they fall in buying a home, what it takes, what can I afford, what can I qualify for,” he says. This marks a significant departure from traditional homebuying patterns where realtors typically served as the first point of contact.

The Data Behind the Shift

J.D. Power’s research methodology, which independently sources respondents and tracks market share across the lending industry, reveals compelling evidence of this trend’s impact. Gehrke notes that borrowers who engage with lenders early in their homebuying journey show dramatically higher satisfaction metrics:

• 70-90 points higher in trust scores
• Significantly reduced tendency to shop around for other lenders
• Stronger long-term loyalty to their chosen lender

Implications for Industry Professionals

This shift presents both challenges and opportunities for real estate professionals, Gehrke argues. “If you’re just a transactor in there as either a loan officer or a real estate agent, you’re at a disadvantage to those who are playing a larger role and engaging customers earlier,”he explains. The key difference lies in creating “stickier” relationships through early education and guidance.

The Solution: Adapting to New Consumer Needs

Gehrke suggests that forward-thinking industry professionals are already evolving their approach. Through J.D. Power’s partnership with major industry players, they’ve observed successful adaptation strategies, including enhanced digital tools for early engagement and educational resources that help potential buyers understand their options before beginning their home search.

“This is an opportunity,” Gehrke says, noting that real estate professionals who embrace this shift can potentially strengthen their position by developing expertise in early-stage financial guidance. The key is understanding that modern homebuyers want financial clarity before they start house hunting, not after.