LenderLogix, a provider of mortgage point-of-sale and automation software for lenders, said that borrowers generated 49,392 preapproval letters through its QuickQual preapproval program in third-quarter 2024, a 15% decrease from the second quarter.
The average number of preapproved borrowers per loan officer decreased slightly to 28.5 in the third quarter, down from 29 in Q2 2024, the company said in its quarterly Homebuyer Intelligence report.
The average preapproval loan amount increased by 26% to $388,215 in Q3, up from $308,681 in Q2. This was driven by a 23% increase in the average sale price, which went from $362,780 to $446,390. The average down payment shrank from 15% in Q2 to 13% in Q3.
Conventional loans comprised 76% of the mix for preapproved borrowers while all other loan categories stayed consistent.
The average number of days between preapproval and loan submission increased by nearly 7% in Q3 to 91 days, compared to 85 days in Q2. The longest duration between preapproval and application decreased by 10 days in Q3 to 593.
The conversion rate from borrowers using QuickQual for loan applications decreased slightly from 56% to 58%. Borrowers generated an average of eight preapproval letters before converting.
