How Long Do VA Loans Take To Close? A Complete Guide

Getting a VA loan to buy a house can be an exciting yet stressful process As a veteran, you’ve earned great benefits like no down payment and competitive interest rates with a VA home loan However, the process can also bring up a lot of questions, especially if it’s your first time buying a home.

One of the most common questions from VA borrowers is “how long do VA loans take to close?” The short answer is you can expect the entire process to take 30-50 days on average. However, many factors impact the timeline, so it pays to understand the full closing process when getting a VA mortgage.

In this complete guide, we’ll cover:

• The VA loan closing timeline overview
• Key steps in the VA loan closing process
• Factors that speed up or slow down VA loan closings
• Tips to close your VA loan faster
• How long VA refinances take to close

Let’s dive in!

Overview of the VA Loan Closing Timeline

Every real estate transaction is unique, but the typical VA purchase loan takes between 30-50 days to close.

Here’s an overview of the standard closing timeline for VA purchase loans:

• 7-14 Days: Get Preapproved
• 7-30 Days: House Hunting & Offer Accepted
• 10-14 Days: Home Appraisal
• 7-14 Days: Final Underwriting & Approval
• 3-5 Days: Loan Docs & Closing Disclosure
• 1-2 Days: Final Walkthrough & Closing

Of course, this is just a general guideline. Your specific timeline may end up shorter or longer depending on several key factors.

Key Steps in the VA Loan Closing Process

To better understand what impacts closing timelines, let’s take a closer look at the key steps that take place during the VA loan process:

Preapproval

The first step is getting preapproved by a lender before you start house hunting. Preapproval involves the lender reviewing your credit, income, assets, and eligibility to determine the loan amount you qualify for.

The preapproval process usually takes 1-2 weeks. The preapproval letter can then be presented when you make offers, showing sellers you are a qualified buyer.

Finding a Home & Offer Accepted

Once preapproved, you can start searching for homes within your approved price range. This process can take weeks or months depending on your criteria.

When you find the right home, you’ll submit an offer and negotiate a purchase price with the sellers. If the offer is accepted, you’ll enter escrow and the closing timeline clock starts ticking.

VA Appraisal

All VA loans require an appraisal to ensure the home meets minimum property standards. A VA appraiser will inspect the home and provide an appraised value, which the lender uses to approve the loan.

VA appraisals usually take 1-2 weeks to complete. Delays can happen if repairs need to be made for the home to meet VA guidelines.

Underwriting

After the appraisal, the loan file goes through underwriting. The underwriter reviews all documentation and officially approves the loan.

Underwriting often takes 1-2 weeks, depending on the responsiveness of your lender. Lengthy delays might occur if the underwriter requests more documentation.

Closing Disclosures & Documents

Within 3 days of closing, your lender must provide a Closing Disclosure outlining all costs and fees. After approval, you’ll receive and sign final loan documents.

Expect 1-2 days for closing documents. Delays in getting CDs and docs can push back closing dates.

Final Walkthrough & Closing

You’ll do a final walkthrough 1-2 days before closing to ensure no changes were made to the property. On closing day, you’ll sign papers and get the keys!

As you can see, there are quite a few steps involved in the VA loan process, which is why it takes 30-50 days on average. However, there are ways to help speed things up.

Factors That Speed Up or Slow Down VA Loan Closings

A variety of factors can influence whether you end up on the shorter or longer end of the closing timeline spectrum:

Speed Up Closing:

• Simple transaction with no contingencies
• Quickly providing documents to lender
• Strong credit and financial profile
• Move-in ready home meeting VA guidelines

Slow Down Closing:

• Multiple contingencies and contract addons
• Delays in getting documents to lender
• Credit issues requiring further review
• Major repairs needed for VA appraisal

Tips to Close Your VA Loan Faster

If you want to close your VA loan quickly, here are some tips:

• Get preapproved – Early preapproval avoids last minute snags

• Be ready with documents – Quickly provide any documents your lender needs

• Maintain your credit – Don’t open new credit before closing

• Choose a move-in ready home – No needed repairs means a quicker appraisal

• Work with a good lender – An experienced VA lender will move fast

• Remove contingencies – The fewer contract contingencies, the better

• Stay on top of your lender – Don’t let documents sit on someone’s desk

Following the above tips can shave days or even weeks off your VA loan closing!

How Long Do VA Refinances Take to Close?

If you already have a VA loan, you also have the option to refinance your mortgage. VA refinances come in two main flavors:

VA Streamline Refinance (IRRRL)

A VA streamline refinance is the quickest option. It can close in as little as 2-4 weeks since no appraisal is required. You simply refinance your current VA loan into a lower rate/payment.

VA Cash-Out Refinance

A VA cash-out refinance lets you take equity out as cash while refinancing into a new loan. This works similar to a purchase – 30-45 days for appraisal, underwriting, and closing.

The Bottom Line

To recap:

• Typical VA purchase closing timeline is 30-50 days

• Many factors like credit and property condition impact timelines

• Refinances can close extremely quickly thanks to relaxed guidelines

• Follow tips like preapproval and using a good lender to speed up closing

Armed with the right information, you can now set proper expectations for your VA home loan closing!