LenderLogix: Borrower Activity Solid in Q2
(Image courtesy of Calvin Wright/pexels.com)
LenderLogix, Buffalo, N.Y., released its Homebuyer Intelligence Report for the second quarter, finding that in the quarter, pre-approval letters generated via LenderLogix’s software rose by 11.9% from Q1 and the average pre-approval loan amount increased to $367,305.
The letters were generated in LenderLogix’s QuickQual pre-approval program.
The average number of pre-approved borrowers per loan officer increased from 26.5 in Q1 to 28.6 in Q2.
The average pre-approval letter loan amount in Q1 was $326,714, compared with the $367,305 notched last quarter. Additionally, the average sales price increased from $381,820 to $423,667.
The average down payment percentage decreased from 14.4% in Q1 to 13.3% in the most recent quarter.
Conventional loans were the most popular loan type for pre-approved borrowers, up from 74.2% in Q1 to 74.7%. FHA pre-approvals fell from 19% to 18.6%, and VA and USDA loans were near flat.
“Despite the increase in sales price, we’ve seen increased prequalification numbers for conventional, FHA, VA and USDA loans, demonstrating borrowers’ desire to purchase,” said LenderLogix co-founder and CEO Patrick O’Brien. “Lenders and real estate partners need to be vigilant to help borrowers find homes that fit their prequalification amounts.”
Of the borrowers using QuickQual, the average number of days between pre-approval and loan submission increased from 79.6 to 86.3 days in Q2.
The conversion rate among borrowers from pre-approval to loan application narrowly ticked up from 55% to 56%. Borrowers had an average of eight pre-approval letters before converting, which was flat.
New applications through its LiteSpeed point-of-sale platform increased 8.7% from the previous quarter. And, the number of documents uploaded through LiteSpeed grew 18.3%.
Successful verification of income and employment through the POS improved, increasing from 15.5% in Q1 to 17.1% in Q2. Verification of assets dipped from 36.7% to 33.7%.
