How Long Does It Take to Process a VA Loan? A Complete Breakdown

Getting a VA home loan can be a great way for eligible veterans and servicemembers to buy a home with little money down. VA loans come with some major benefits like no monthly mortgage insurance and low interest rates.

But many first-time VA homebuyers wonder – how long does the entire VA loan process take from start to finish?

The timeline for getting approved for a VA mortgage depends on several factors. But on average, it takes 40-50 days to process and close on a VA purchase loan

This VA loan processing timeline is right in line with conventional loans There’s really not much difference between VA and conventional processing times despite the myth that VA loans drag out,

In this comprehensive guide, we’ll break down the standard VA loan timeline from preapproval to closing. Understanding the key steps can help set proper expectations so you can better plan for your upcoming homebuying journey.

Overview of the VA Loan Process

Every VA loan timeline is unique, but most follow a similar series of steps:

• VA Loan Preapproval
• House Hunting
• Making an Offer and Going Under Contract
• Home Inspections and VA Appraisal
• VA Loan Underwriting
• Closing on the Mortgage

Now let’s explore each of these steps and how long they typically take.

Step 1: VA Loan Preapproval (2-5 Days)

Preapproval is one of the most important parts of the VA loan process. Being preapproved shows sellers that you’re a serious buyer who has been vetted by a lender.

Many experts recommend getting preapproved before you even start house hunting. This can give you a price range to focus your home search and streamline the rest of the buying process.

The preapproval process itself usually only takes 2-5 days. Lenders will review key information like your:

• Income and assets
• Credit reports
• VA eligibility
• Down payment amount

They’ll also request documents like bank statements, W-2s, and paystubs to verify your financial information.

Once the lender has all the necessary documentation from you, you can typically get an official preapproval letter within a few days.

Step 2: House Hunting (Weeks to Months)

How long it takes to find the right home varies drastically by housing market conditions and personal preferences.

Some buyers get lucky and find their dream home within weeks. Others take several months to find the perfect match. Cast a wide net during your search and be patient.

Having a preapproval letter in hand while you’re looking gives you a major advantage over other buyers. Sellers and listing agents know you’re ready to move quickly.

Once you find the ideal home and make an offer, the real VA loan timeline countdown begins.

Step 3: Making an Offer and Going Under Contract (Hours to Days)

Making an offer is one of the most exciting steps! This is officially your bid to purchase the property.

The seller can accept your original offer, make a counteroffer, or reject it completely. Be prepared to negotiate things like price, closing date, repairs, and more.

Hopefully after a few rounds of back and forth you’ll reach a deal – also known as going under contract.

The contract negotiation process often takes hours to a few days, depending on how quickly the buyer and seller communicate. Inform your lender once your offer is accepted so they can kickstart the underwriting process.

Step 4: Home Inspections and VA Appraisal (1-2 Weeks)

The next step is the home inspection contingency period, which typically lasts 5-10 days. This gives you the chance to have the property thoroughly evaluated.

You’ll also need to have the home appraised by a VA-approved appraiser. They ensure the property is worth the purchase price and meets VA minimum property standards.

It usually takes 1-2 weeks to coordinate inspections and get the VA appraisal back. Make sure to review the reports carefully to understand any issues flagged.

If repairs are required, you’ll likely request the seller complete them before closing. If the appraisal value comes in too low, you may need to renegotiate the price.

Step 5: VA Loan Underwriting (1-2 Weeks)

Underwriting is when your entire VA loan application gets fully reviewed and verified by the lender. They analyze all your financial details to ensure you qualify.

Lenders can’t finalize approval and issue a clear-to-close until the VA appraisal is back. So the underwriting timeline heavily depends on when the appraisal is completed.

On average, VA loan underwriting takes around 1-2 weeks. Quickly submitting any extra documents the underwriter requests can help speed things up.

Delays during underwriting are common if you have credit dings that need explanation or insufficient income documentation. Respond to your loan officer’s requests as soon as possible to keep closing on track.

Step 6: Closing on the Mortgage (3-5 Days)

You’re in the home stretch once underwriting is approved! Closing day is right around the corner.

Federal law requires you get a Closing Disclosure from the lender at least 3 days before the signing appointment. This outlines the final loan costs and fees.

Then it’s time for the closing appointment where you’ll ink the final paperwork! This usually takes 1-2 hours.

Expect to get the keys about 3-5 days after underwriting clears, though an on-time closing depends on your real estate agent and title company’s availability too.

And remember – closing day means you can finally celebrate being a proud new homeowner!

What Factors Impact the VA Loan Timeline?

Now that you know the standard VA loan process timeline, here are some variables that can influence the speed:

Your Credit Score – Borrowers with higher credit scores typically fly through underwriting with no issues. But those with lower scores or recent missed payments may need to provide more explanation.

Your Income – Documenting steady employment and income sources is crucial. Expect delays if you’re self-employed, have multiple jobs, or receive bonus/commission.

The Property’s Condition – VA loans require an appraisal to ensure the home meets minimum property standards. Repairs found during inspection can set the closing date back.

Your Down Payment – Putting down less than 20% triggers extra underwriting and paperwork for VA loans. Larger down payments simplify the process.

Your Overall Financial Profile – Things like high existing debts and minimal reserves may prompt the underwriter to dig deeper, extending the timeline.

The Lender’s Workload – Loan officers and underwriters with huge work volumes may not prioritize your file. This causes delays.

The more uncomplicated your financial situation, the faster the VA loan process tends to be. Be ready to quickly submit any extra documents the lender needs to keep things moving.

How to Speed Up Your VA Home Loan

Because so many factors impact the VA loan timeline, what can you do to speed things up? Here are a few tips:

• Get prequalified and then preapproved – Being preapproved before house hunting shaves weeks off
• Work with a knowledgeable lender – Top VA lenders have optimized systems to expedite loans
• Organize all your documents – Having paperwork ready avoids delays for verification
• Stay on top of requests – Respond to your loan officer’s questions ASAP
• Don’t make any major purchases – Big purchases before closing gets extra scrutiny

The more you prepare up front, the faster the overall loan process tends to be. Also try to remain patient, as some delays are inevitable and out of your control.

Closing Thoughts on VA Loan Timelines

The most important thing is working with a lender who you trust to guide you through every milestone. Veterans United has helped over 1 million families get VA loans – contact us today to get matched with a home loan expert!