Newsletter: Predicting Volume, NY MBA, Summer Tunes, PROGRESS in Lending, LO Virtual Event, Customer Giveaway
Predicting Volume Based on Pre-Quals 🏡
An interesting topic of conversation that we’ve been having with our clients is their ability (or inability) to forecast purchase volume based on their pre-qualification activity. We find that most lenders attempt to forecast purchase volume based on the number of credit reports they run over a certain period. This, of course, ends up being a poor indicator, as obviously not every credit report results in a pre-qualified borrower. In fact, most lenders don’t even have a mechanism to measure the number of active pre-qualified prospects they have out looking for homes.
While most mortgage executives could quickly tell you how many applications or closings they have year-to-date down to the individual loan officer, they couldn’t say how many pre-qualified borrowers they have out on the street. And while they could tell you what a loan officer’s “application to close” pull-thru rate is, they couldn’t tell you what a loan officer’s “pre-qual to-application” conversion rate is.