Buying a home is a multi-step process, and everyones homebuying journey may vary. It’s an extremely common question for many first-time homebuyers: “How long will it take to buy a home with a VA loan?” Theres a lingering myth that VA loans take forever to close, but thats simply not the case.
Demystifying the VA Home Loan Process Timeline: A Step-by-Step Guide for Military Homebuyers
Buying a home is likely one of the most exciting yet stressful undertakings you’ll encounter in your lifetime. And when you’re an active military servicemember or veteran using your VA home loan benefit, the process can seem even more daunting.
Luckily, the VA home loan process timeline isn’t much different from a conventional mortgage. While every home purchase is unique, you can expect the entire VA loan process to take around 30-50 days on average.
In this comprehensive guide I’ll walk you through what to expect at each step of the VA mortgage timeline from pre-approval to closing day. My goal is to provide clarity and confidence for military borrowers on their journey to homeownership.
Step 1: Getting Pre-Approved for a VA Loan
Pre-approval is the first step in the VA loan process This involves applying with a VA lender and having them thoroughly assess your finances to determine the maximum mortgage amount you can qualify for
The pre-approval process verifies your VA eligibility, income, assets, credit health, and service history. Once approved, you’ll receive a pre-approval letter stating the amount you’re able to borrow.
Having this pre-approval letter is vital before you start seriously shopping for a home. It shows sellers you’re a qualified, serious buyer and can give your offer an edge in competitive markets
How Long Does VA Pre-Approval Take?
Many lenders can pre-approve you in just 1-3 days if you provide all required documents upfront. These may include W-2s, pay stubs, federal tax returns, bank statements, and a photo ID.
However, pre-approval can take 7-10 days or longer if you have unique circumstances or need to submit additional paperwork. For a smoother process, I recommend having all needed documents ready before applying.
Once pre-approved, your letter is typically valid for 60-90 days. But any major changes to your finances may require an updated letter.
Step 2: House Hunting and Finding the Right Home
With your pre-approval locked in, you have the green light to start searching for your perfect home. This exciting process can take weeks or months depending on your budget, needs, and market inventory.
As you view homes, keep an open dialogue with your real estate agent regarding prices, locations, and property types. They should understand VA guidelines and loan limits to show you homes you can comfortably afford.
Agents familiar with the VA loan process will also ensure potential homes meet VA minimum property requirements. This prevents you from falling in love with a home you won’t qualify for.
Step 3: Making an Offer and Going Under Contract
After lots of searching, you’ve finally found your dream home and make an offer! Your agent will negotiate the purchase terms with the seller’s agent. If accepted, you are now “under contract” with the seller.
Notify your lender immediately so they can order a home appraisal. You’ll also need to pay for a home inspection to identify any major defects or issues with the property.
During this stage, ask your lender for a detailed breakdown of all your VA loan fees and closing costs. Understand exactly what you’ll owe so there are no surprises.
Step 4: VA Loan Underwriting and Approval
While you handle the purchase agreement, your lender will begin underwriting your VA loan. This involves verifying all details and documents from your application and confirming you are creditworthy for the mortgage.
Underwriting utilizes an Automated Underwriting System (AUS) to evaluate your file. Some complex loans may also require manual underwriting by a human lender.
The underwriter will review your home appraisal, credit report, income sources, assets/reserves, and debts. If your loan file looks good, you’ll get a final approval and “clear to close” signaling you’re ready for closing day.
How Long Does VA Underwriting Take?
Underwriting often takes 10-14 days, but can be quicker with an experienced VA lender. The VA appraisal timeline also impacts underwriting since your approval is contingent on the home meeting VA standards.
Rushing appraisers can backfire, so give them 1-2 weeks to thoroughly inspect the property. Any appraisal issues may require renegotiations with the seller over the price or repairs.
Step 5: Closing on Your VA Mortgage
Closing day is the final step in the VA home buying process. This is when you’ll sign the final legal paperwork and get the keys to your new home.
A few days before closing, your lender will send a Closing Disclosure outlining your final loan costs. Prepare any remaining down payment and closing cost funds.
The closing appointment can take 1-3 hours as you sign documents and authorize payments. Make sure to get a final property walkthrough to check for any changes.
Once complete, the home is yours! Record your new deed, change utilities into your name, and start moving in.
How Long Does VA Loan Closing Take?
You can expect to close on your VA loan around 30-45 days from the time your offer was accepted. However, an experienced lender like Veterans United can often close VA loans in as little as 15-21 days.
FHA and conventional loans take similar timeframes, so VA mortgages don’t have longer closing timelines. Working with the right lender and having all your documents ready makes the biggest impact.
VA Streamline Refinance Timeline
If you already have a VA loan and want to refinance, the process is often much faster taking around 15-30 days total.
Since the VA already has your eligibility and loan history on file, streamlined refis require less paperwork and underwriting. Closing within 21 days or less is common with these simpler VA refinances.
Just be sure your new VA loan amount doesn’t exceed your home’s value to qualify for streamlined refinancing benefits.
Tips for an Efficient VA Loan Timeline
While every home purchase has unique factors, you can optimize your VA loan process by:
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Getting pre-approved before house hunting – Gives you negotiation power
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Finding a VA-savvy real estate agent – Helps you avoid ineligible homes
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Discussing fees/costs early – Eliminates closing day surprises
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Providing all documents quickly – Prevents underwriting delays
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Selecting the right VA lender – Closes loans efficiently and guides you through the process
It’s Time to Make Your Homeownership Dreams Reality
With an experienced VA lender guiding you, a real estate agent who understands VA loans, and a proactive approach on your end, you can expect to close smoothly within 30-45 days in most markets.
The exciting journey to homeownership is filled with twists and turns. But by understanding the road ahead with your VA home loan, you can navigate it with ease. You worked hard to earn this amazing mortgage benefit – now it’s time reap the rewards.
How long does it take to get a VA loan?
You can expect your VA loan to close within 40 to 50 days. This is a pretty standard timeline for the mortgage industry regardless of the type of financing.
In fact, dig into the numbers a bit, and you dont find much difference between VA and conventional loans.
This guide will review five key factors affecting the VA loan process timeline.
Repairs and Reconsideration of Value
The VA appraisal results can also affect the speed and efficiency of the closing process.
If the VA appraiser makes a home “subject to” repairs, those repairs must be completed before the loan can close. Extensive repairs could push the closing date back by weeks or months.
The appraisal value can also affect the final timeline. VA loans can’t be issued for more than a home’s appraisal value. If the appraisal value falls below the purchase price, buyers have some thinking (and some delays) ahead.
Post-appraisal, any VA loan file is subject to final underwriting. The closing date could change if an underwriter needs additional documentation or notices an eligibility problem.
Beginners Guide to VA Home Loans in 2023
FAQ
How long does it take for a VA home loan to be approved?
How fast can you get a VA loan?
Can a VA loan close in 30 days?
How long does it take for a VA loan to close?
The VA loan process for homebuyers typically takes 30-45 days from preapproval to closing. VA streamline refinancing can be a faster process, often closing in half the time. The VA purchase and refinance timelines are comparable to conventional mortgages.
How many veterans completed the VA home loan process last year?
Last year, over a million Veterans and service members completed the VA home loan process while taking advantage of the VA loan’s $0 down payment benefit and the mortgage industry’s lowest average interest rates.
How does the VA home loan process work?
The VA home loan process begins with the lending institution reviewing the appraisal and all documentation of credit, income, and assets. The lender then decides whether the loan should be granted based on this information. Once approved, the lender chooses a title company, an attorney, or one of their own representatives to conduct the closing. This person will coordinate the date/time and the property is transferred.
What is the VA loan underwriting process?
The VA loan underwriting process is where lenders turn your VA loan preapproval into an approved mortgage. They begin the due diligence to ensure that you can afford the home at the price shown in your home contract.