The Complete VA Loan Process Timeline: A Step-by-Step Guide for 2023

Purchasing a home is likely one of the biggest financial decisions you’ll make in your lifetime. It can be an exciting yet stressful process, especially if you’re a first-time homebuyer navigating all the various steps for the first time.

Veterans have a unique advantage in the home buying process thanks to VA loans These government-backed mortgages help military buyers get into a home with little to no down payment VA loans also come with lower interest rates versus conventional loans, relaxed credit requirements, and protections if you need to walk away from a home purchase.

While VA loans provide incredible advantages, the overall mortgage process itself is similar to other loan programs. This guide will walk you through the typical VA loan timeline from start to finish. Understanding the general steps and timing will help you set proper expectations and feel confident each stage is moving at an appropriate pace.

Overview of the VA Loan Timeline

The typical VA loan process takes between 30-50 days to go from application to closing day. However, it can vary based on market conditions, your unique financial situation, and other factors.

Here is a general overview of the VA mortgage timeline:

• Preapproval: 1-5 days
• House Hunting: Varies
• Under Contract: 1-14 days
• Underwriting: 7-21 days
• Closing: 30-45 days from contract

Now let’s explore each of these steps in more detail

Step 1: Getting Preapproved for a VA Loan

Preapproval is one of the very first steps VA loan borrowers should take. This part of the process typically only takes a few days to complete.

Here are some key things to know about VA loan preapprovals:

• Preapproval vs. Prequalification: Preapproval is more thorough than prequalification. Preapprovals require you to provide documents to verify your finances. Prequalification only requires basic information.

• Proof of Eligibility: Your lender will verify you meet VA requirements by obtaining your Certificate of Eligibility (COE).

• Documents Needed: Pay stubs, tax returns, bank statements to confirm your income, assets, and debts.

• Credit Check Required: Yes, lenders will check your credit report.

• Expiration: Preapprovals are typically good for 60-90 days. Your interest rate is only locked once you are under contract.

• Not a Guarantee: Preapproval letters do not guarantee a final loan approval.

Once you receive your preapproval letter, you’ll have a solid idea of your price range and purchasing power.

Step 2: Go House Hunting!

Armed with your preapproval letter, now is the time to start searching for your perfect home. This stage can take weeks or months depending on your criteria. Be ready to look at multiple properties before finding “the one.”

Tips for this stage:

• Research neighborhoods, schools, commutes, and amenities.

• Define your must-have home features. Prioritize wants vs. needs.

• Contact a real estate agent experienced with VA loans. Ask your lender for recommendations.

• Attend open houses and schedule tours of properties matching your criteria.

• Make offers on homes you love within your preapproval amount. Remember, the VA home loan limit for 2023 is $722,500. The limit varies by county.

• Negotiate repairs or closing credits with motivated sellers. VA loans allow you to ask for seller concessions.

Step 3: Going Under Contract

Once a seller accepts your purchase offer, you are “under contract.” This commits both parties to moving forward with the deal.

Key activities at this stage:

• Finalize purchase terms like price, closing date, contingencies, etc.

• Provide contract to your lender to kickoff underwriting.

• Complete VA appraisal and home inspection.

• Final walkthrough of property before closing.

• Close within specified timeframe (typically 30-45 days).

Being under contract is a huge milestone, but there are still final underwriting steps required before closing day.

Step 4: Underwriting Your VA Loan

Underwriting is when your lender double checks all details of your loan application and financial profile. They want to ensure you qualify based on your income, assets, credit, and ability to repay the mortgage.

Here’s what to expect during VA underwriting:

• Processing Documents: Provide any additional items requested by your loan officer. Respond promptly to underwriting questions.

• Verifying Details: Loan processor reviews all your paperwork to confirm everything checks out.

• VA Appraisal Ordered: The lender will order a VA appraisal during this stage to determine the home’s value.

• AUS Assessment: Your application goes through an Automated Underwriting System to assess overall loan risk.

• Manual Review: Some complex loans may also require manual underwriting by a person. This can take more time.

• Conditional Approval: The underwriting team issues a “clear to close” once everything looks good. But it’s still conditional on your good standing at time of closing.

Underwriting and processing usually takes 1-3 weeks total. Complex loans or issues that come up can extend this timeline. Stay in close contact with your loan officer throughout this critical stage.

Step 5: Closing on Your VA Mortgage

You’re almost ready to celebrate! Closing day is when you’ll sign final loan documents and officially take ownership of the home.

Here are key activities on VA closing day:

• Final Walkthrough: Do one last tour of home immediately before closing to ensure all repairs were made and home is vacant.

• Review Docs: The closing agent will walk through all your closing documents. Read everything carefully before signing.

• Closing Costs Due: Bring certified funds for your down payment and closing costs. Confirm final totals with your lender before closing day.

• Sign Away: It’s time to put your signature on the dotted lines! Once documents are signed, the home is yours.

• Get Your Keys: Congrats, you are now an official homeowner!

Factors That Impact VA Loan Timelines

While the typical VA loan process takes 30-45 days, your specific situation could make it move faster or slower. Here are some variables to keep in mind:

Your Finances – Strong credit and income sources speed things up. Weaker finances mean more underwriting scrutiny. Have all your financial documents ready from the start.

Housing Market – When demand is high and inventory low, houses get more offers. This can lengthen the shopping phase. Be ready to act quickly when you find the right property.

Time of Year – Home buying season peaks in spring and summer. Closings take longer due to volume. Fall and winter are typically slower periods.

VA Appraisal Backlog – High demand for VA loans can overwhelm appraisers, delaying the underwriting timeline.

Complex Loans – Renovation financing, jumbo loans, etc. have more steps. Allow more time.

Loan Program – VA streamline refinances can close extremely quickly thanks to limited documentation requirements.

Your Response Time – The faster you provide documents to your lender, the quicker the process moves. Be proactive responding to underwriting requests.

While delays can happen, a reputable lender will proactively communicate changes to your timeline expectations.

Tips for Navigating the VA Loan Process

Here are some final tips for making your VA loan experience smooth and efficient:

• Get preapproved first – Being preapproved makes sellers take your offers seriously. Don’t start house hunting without this important step.

• Find a VA-savvy agent – Look for a real estate pro who understands how to maximize VA loan benefits and navigate the appraisal process.

• Regularly communicate with your loan officer – They are your guide through every milestone. Be responsive to their requests to avoid delays.

• Provide documents quickly – Have your financial paperwork ready upfront. Completing requests from the lender quickly prevents slowdowns.

• Send broker/agent updates – Keep your real estate agent or broker in the loop so they can better advise if any changes happen.

• Plan ahead with sellers – If the home needs repairs, negotiate a repair amendment for credits or more time before closing.

• Lock your rate early – Interest rates change constantly. Lock your rate as soon as you have an accepted offer to secure the lowest rate.

Following these steps and tips will help you understand what to expect during a typical VA loan. While timelines vary, a reliable lender will ensure you have clear guidance and communication for each milestone along your home buying journey.