How Long Does Underwriting Take for a VA Loan? A Complete Guide

Getting a VA loan to buy a home can be an exciting yet stressful process, especially when it comes to underwriting. As a crucial step in securing financing, borrowers often wonder: how long does underwriting take for a VA loan?

The underwriting timeline can vary quite a bit based on your lender and loan complexity. However, VA mortgage underwriting typically takes anywhere from 2 to 8 weeks to complete.

While it may seem lengthy, underwriting is a necessary part of confirming you qualify for the loan amount and can afford the monthly payments. VA lenders want to mitigate their risk, so underwriters dive deep into your finances.

I’ll walk through what underwriting entails as well as tips for expediting the process when buying a home with a VA loan

What is VA Loan Underwriting?

VA underwriting is the final review of your loan application and documents before closing on a mortgage. Underwriters thoroughly analyze a borrower’s finances to confirm they are a good credit risk.

Specifically, underwriters verify:

• Income and employment
• Assets and downpayment
• Credit history and scores
• Debt-to-income ratios
• VA eligibility status

Essentially, they ensure you qualify for the loan amount requested based on your current finances and credit profile.

The underwriting process serves as a critical quality check before the lender will commit to lending you hundreds of thousands of dollars

VA Underwriting Process Steps

While each mortgage lender has their own specific underwriting process, most follow a similar workflow:

1, Application Submission

You’ll submit your loan application and documentation to your lender. This includes bank statements, tax returns, W-2s, VA Certificate of Eligibility, DD214 discharge papers, and more.

Providing complete documentation upfront prevents delays.

2. Initial Underwriting Review

Underwriters will confirm you meet basic VA loan requirements based on the initial documents. This includes:

• VA eligibility based on service history
• Income meets debt-to-income requirements
• Assets are available for downpayment
• Credit score meets minimum thresholds

3. Verifications and Redocumenting

Next, your lender will begin verifying the details provided. This includes:

• Employment verification
• Source of downpayment funds
• Credit report refresh
• VA appraisal

Any changes or discrepancies must be redocumented.

4. Conditional Approval

Most borrowers will receive initial “conditional approval” at this point pending any final verifications.

5. Final Underwriting Approval

Once all conditions are cleared, you’ll receive final approval. Then it’s time to close!

VA Underwriting Timeline

So how long does underwriting take from start to finish?

The VA underwriting timeline can range from as little as 2 weeks to upwards of 2 months. However, most borrowers fall somewhere in the middle.

Here are some general timeframes to expect:

• Pre-Approval Underwriting: 2-7 days
• Full Underwriting: 3-6 weeks
• Closing Underwriting: 1-2 weeks

However, if the underwriter needs clarification, corrections, or updated documents, it can draw out the process longer.

Let’s look at what factors influence the speed of underwriting when going through the mortgage process.

Loan Type

In general, purchase mortgages take longer to underwrite than VA refinances.

With a refinance, the underwriter already has documentation tied to your existing mortgage. However, they’ll need to validate your income, assets, credit, and property value from scratch on a new purchase.

VA streamline refinances specifically can close very rapidly in some cases. These “IRRRLs” don’t require income verification or appraisals in many cases.

Your Financial Situation

Borrowers with complex finances tend to require lengthier underwriting. Examples include:

• Self-employed applicants
• Large assets from sources like stocks or cryptocurrency
• Non-traditional income sources
• High debt-to-income ratios
• Credit blemishes

Manual underwriting also takes more time than automated underwriting. Borrowers with thin credit files often require manual review.

Lender Workload

Some lenders close far more loans than others. The underwriting department’s workload directly impacts timelines.

Ask your loan officer upfront how long underwriting is taking currently. Check online reviews as well.

High-volume lenders often take longer but may have more automated systems. Smaller lenders tend to turn around files faster.

Your Responsiveness

How fast you submit documents and respond to underwriter questions affects turn times.

Promptly send requested paperwork and explanations to keep things moving. Being slow to respond can pause the underwriting and draw out timelines.

How to Speed Up VA Underwriting

While you can’t fully control how long underwriting takes, you can help expedite the process. Here are tips for getting your VA loan approved faster:

Work with a reputable VA lender – Trusted lenders have systems optimized for faster VA loan underwriting. Veterans United and Navy Federal Credit Union are great options.

Get fully pre-approved – Pre-approval requires full underwriting upfront. So when you find a home, the lender has done most of the work already.

Be organized from the start – Submit a complete loan application with all documents needed to verify your details. Disorganized applicants cause delays.

Stay in close contact with your loan officer – Respond to underwriter requests immediately and keep loan officers updated on any changes to your situation.

Allow extra time before your ideal closing date – Build in a buffer in case underwriting takes longer than expected. Rushing underwriters leads to mistakes.

Avoid major purchases or changes – Don’t change jobs, buy a car, or make other large financial moves during underwriting. That complicates approval.

While proper planning helps, unexpected issues can always come up and extend VA underwriting timelines. Be patient, stay responsive, and work closely with your lender to get your VA loan closed as quickly as possible.

The Closing Process After Underwriting

Once underwriting completes with final approval, your loan is nearly ready to fund! Here’s what to expect next:

1. Final loan approval

The clear to close authorizes your loan for closing. Final loan documents are prepared.

2. Closing disclosure

Your lender sends a closing disclosure 3 days before closing listing final costs.

3. Schedule closing & verify funds

Pick a closing date and wire your down payment and closing costs (if applicable).

4. Closing appointment

Meet with the settlement agent to sign paperwork to finalize the mortgage.

5. Loan funding

The lender disburses funds to the seller. The home and keys are all yours!

While closing day is fast, taking around an hour in most cases, savor the moment! It takes immense time and paperwork to get there.

alternatives

Here are a few alternative section titles and approaches I could take for this article:

Demystifying the VA Mortgage Underwriting Process

This would focus more on simplifying the complex mortgage underwriting process for VA borrowers. I would break down each step in very simple terms and provide visuals like flowcharts.

How to Survive VA Mortgage Underwriting

This would take a more conversational, relatable tone toward underwriting. I could share tips and anecdotes from other borrowers on getting through underwriting with your sanity.

Factors That Impact VA Underwriting Timelines

Rather than a full overview, I could focus specifically on what circumstances cause underwriting to take longer or shorter. This would help set expectations for borrowers.

Mistakes to Avoid During VA Underwriting

I could focus on common mistakes and missteps borrowers make that draw out underwriting and approvals. This would help them avoid pitfalls.