Mortgage borrowers generated 11.9% more pre-approval letters through LenderLogix’s QuickQual pre-approval platform in the second quarter compared with the first quarter, according to the firm’s Homebuyer Intelligence Report.
The average number of pre-approved borrowers per loan officer increased to 28.6 in the second quarter, up from 26.5 in the first quarter.
The average pre-approval letter loan amount increased to $367,305, up significantly from $326,714 in the first quarter.
The average sales price increased to $423,667 in the second quarter, up from $381,820 in the first quarter.
The average down payment decreased to 13.3%, down from 14.4% the quarter prior.
Conventional loans remained the most popular loan type for pre-approved borrowers, increasing marginally to 74.7% in the second quarter, up from 74.2% in the first quarter.
FHA pre-approvals decreased marginally from 19% to 18.6%, while VA (4.5%) and USDA (1%) maintained their share from the previous quarter.
“Despite the increase in sales price, we’ve seen increased prequalification numbers for conventional, FHA VA and USDA loans, demonstrating borrowers’ desire to purchase,” says Patrick O’Brien, co-founder and CEO for LenderLogix, in the report. “Lenders and real estate partners need to be vigilant to help borrowers find homes that fit their prequalification amounts.”
Photo: Nguyen Quan