In keeping with seasonal patterns, borrowers generated 37.8% more pre-approval letters through LenderLogix’s QuickQual pre-approval platform in the first quarter compared with the fourth quarter.
The average number of pre-approved borrowers per loan officer increased to 26.5, up from 23 in the fourth quarter, according to the firm’s Homebuyer Intelligence Report.
The average pre-approval letter loan amount slightly increased to $326,714 in the first quarter – up from $322,532 in the fourth quarter.
The average sales price increased to $381,820, up from from $376,436.
The average down payment size increased to 14.4%, a marginal increase from 14.3% in the fourth quarter.
Conventional loans remained the most popular loan type for pre-approved borrowers in the first quarter, however, their share decreased marginally to 74.2%, down from 74.3%.
FHA pre-approvals decreased marginally from to 19%, down from 19.1%, while VA (4.5%) and USDA (1%) maintained their share quarter over quarter.
“We’re seeing strong early-season activity from homebuyers, which suggests renewed optimism despite ongoing affordability concerns,” says Patrick O’Brien, co-founder and CEO for LenderLogix, in the report. “Borrowers are entering the market with intent, and their use of digital pre-approval tools reflects a growing emphasis on speed and preparation in today’s competitive environment.”
Of the borrowers using QuickQual, the average number of days between pre-approval and loan submission decreased to 79.6 days in the first quarter, down from from 91 days in the fourth quarter.
The most prolonged duration between pre-approval and application increased by 59 days to 709, up from 650.
The conversion rate among borrowers from pre-approval to loan application increased slightly to 55%, up from 54%.
Borrowers maintained an average of eight pre-approval letters before converting. In total, new applications through the LiteSpeed point-of-sale (POS) platform increased 54%, quarter over quarter.
“Borrowers are clearly staying engaged throughout the early stages of the homebuying journey,” O’Brien says. “We’re seeing signs of increased urgency and lender responsiveness, both of which point to a more active purchase market and continued adaptation to borrower expectations.”