As the housing market transitions into fall, homebuyer activity has slowed, but borrowers remain engaged and financially strong. The Q3 2025 LenderLogix Homebuyer Intelligence Report reveals that while pre-approval volume and loan amounts dipped slightly in Q3 2025, borrowers demonstrated continued readiness with higher down payments and consistent conversion rates. These findings reflect a resilient purchase market and continued borrower confidence heading into year-end.
Pre-Approval Volume Moderates but Borrower Readiness Rises
Borrower activity dipped slightly this quarter, with 8.6% fewer pre-approval letters generated through QuickQual compared to Q2 2025. Loan officers (LOs) averaged about 3 fewer pre-approved borrowers, a modest adjustment typical for late summer and early fall.
Despite the lower volume, borrowers entering the market are well-prepared. Both the average loan amount and sale price declined by roughly $38,000 quarter-over-quarter, yet the average down payment increased from 13.3% to 14.7%. This suggests that buyers are approaching purchases with a stronger financial footing and more savings on hand. Borrowers who have been waiting for better market conditions may now be in a good position to act.
The most popular loan type continues to be conventional loans at 74.6%, followed by FHA (18.7%), VA (4.2%), and USDA (1%). Borrower preferences continue to span loan types, with demand remaining broad-based across the lending landscape.
“Even with fewer pre-approvals this quarter, today’s homebuyers are showing they mean business — bringing more money to the table and staying active across every loan type,” said Patrick O’Brien, Co-Founder and CEO of LenderLogix.
Conversion Rates Hold Steady Amid Longer Home Search Cycles
While home search timelines grew slightly longer in Q3, borrowers are staying committed to their purchase goals. The average time from pre-approval to loan submission increased from 86.3 to 89.5 days, reflecting a slower home selection process amid tight inventory and evolving affordability.
Still, conversion rates held steady. The pre-approval to loan application conversion rate remained at 56%, with borrowers generating an average of eight pre-approval letters before converting, matching Q2 figures. Additionally, loan applications through the LiteSpeed point-of-sale (POS) platform increased by 1.5%, signaling stable borrower engagement.
“The longer home search window tells us buyers are being more selective, not less committed. Consistent conversion rates are proof of resilience in today’s market,” said O’Brien.
Post-Application Engagement Grows Slightly as VOIE Improves
Borrower activity after application rose modestly in Q3. Document uploads through LiteSpeed increased 1.5%, and new needs lists grew 1.6% quarter-over-quarter. These metrics highlight continued borrower engagement after the initial loan submission stage, as well as continuing efforts by LOs to educate and prepare borrowers effectively.
Verification performance also shifted slightly. Success in verifying income and employment (VOIE) at the point-of-sale (POS) improved from 17.1% to 17.8%, while success in verifying assets (VOA) decreased from 33.7% to 31.2%. These trends illustrate how lender technology stacks and vendor performance can directly influence processing efficiency and borrower satisfaction.
Stability and Strategy Define the Q3 Market
While Q3 reflected a slower pace of pre-approvals, the data shows that borrowers remain financially stable and intent on homeownership. Larger down payments, steady conversions, and modest improvements in post-application engagement all point to a market that’s adapting, not stalling.
For lenders, maintaining momentum means continuing to embrace technology that streamlines borrower interactions from the first click to close. Solutions like QuickQual and LiteSpeed help lenders deliver faster, more transparent experiences that keep borrowers informed and engaged throughout the process.
Even in a cooling market, today’s digitally empowered homebuyers are moving forward, and lenders equipped with the right tools are positioned to move with them.