LenderLogix Finds Mortgage Market Momentum
(Illustration courtesy of Mike Sorohan)
Signs point to growing borrower momentum in the mortgage market as the spring homebuying season takes off, according to LenderLogix, Buffalo.
LenderLogix’s Q1 2025 Homebuyer Intelligence Report found more homebuyers are getting pre-approved, moving faster from pre-approval to application and staying actively engaged throughout the loan process.
“We’re seeing strong early-season activity from homebuyers, which suggests renewed optimism despite ongoing affordability concerns,” LenderLogix Co-Founder and CEO Patrick O’Brien said. “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.”
Pre-Approvals
The average number of pre-approved borrowers per loan officer increased from 23 in Q4 2024 to 26.5 in Q1, LenderLogix found.
The average pre-approval letter loan amount slightly increased from $322,532 in late 2024 to $326,714 in Q1. The average sales price also increased from $376,436 to $381,820. The average down payment size marginally increased from 14.3% in Q4 to 14.4%.
Conventional loans remained the most popular loan type for pre-approved borrowers in Q1, though decreased marginally from 74.3% to 74.2% below the prior quarter. FHA pre-approvals decreased marginally from 19.1% to 19%. VA (4.5%) and USDA (1%) maintained their share from Q4 to Q1 2025.
Borrower Conversion
Of the borrowers using LenderLogix’s QuickQual LOS, the average number of days between pre-approval and loan submission decreased from 91 days in Q4 2024 to 79.6 days in Q1. The most prolonged duration between pre-approval and application increased by 59 days from 650 in Q4 to 709 in Q1. The conversion rate among borrowers from pre-approval to loan application increased slightly from 54% to 55% in Q1. Borrowers maintained an average of eight pre-approval letters before converting.
“Borrowers are clearly staying engaged throughout the early stages of the homebuying journey,” O’Brien noted. “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.”
Post-Application Engagement
In Q1 2025, the number of documents uploaded through LenderLogix’s LiteSpeed POS grew 48% quarter-over-quarter. The number of newly created needs lists, including both online applications and those entered by loan officers, rose 37% in Q1.
Successful verification of income and employment through POS improved significantly, increasing from 6.5% in Q4 to 15.5% in Q1. Verification of assets also rose, climbing from 33.1% to 36.7% over the same period.
“This quarter’s data points to meaningful improvements in post-application engagement,” O’Brien added. “Increases in document uploads, Needs List creation, and verification success rates all contribute to stronger loan files, faster underwriting decisions, and deeper borrower engagement. These trends reflect how the right tools can streamline workflows while also improving loan quality and borrower experience.”
