A Complete Guide to VA Loan Processing Times

If you’re a veteran or servicemember considering using your VA home loan benefit, you probably have questions about the timeline. Specifically, how long does it take to close on a VA mortgage? This comprehensive guide will walk you through what to expect at each stage of the VA loan process and provide tips to help expedite your home purchase.

Overview of the VA Loan Timeline

In general, you can plan for the VA loan process to take 30-45 days from the time you go under contract to closing day However, your individual timeline can vary based on factors like your lender, credit profile, type of loan, and property location

Here is a high-level overview of the key steps that make up the VA loan timeline:

• Preapproval (1-5 days) – Getting preapproved early sets the stage for a smooth process, This step confirms you qualify for the VA loan amount you need

• House hunting (variable) – Once preapproved, start searching for your dream home. This step can take weeks or months depending on your criteria.

• Under contract (1-2 days) – Making an offer and having it accepted by the seller puts your home purchase legally under contract.

• Processing (7-14 days) – Your lender reviews your finances, credit, and eligibility during the loan processing period.

• Underwriting (7-14 days) – Underwriters approve your loan after validating all requirements are met during processing.

• Appraisal (5-10 days) – The property is appraised to ensure it meets VA guidelines. The appraisal must be completed before closing.

• Closing (1-2 days) – This is the finish line! Closing day is when you sign documents and get the keys.

Now let’s explore what happens during each phase of the VA loan process and what determines your exact timeline.

Preapproval Stage

Getting preapproved by a lender should be your first step when considering a VA mortgage. The preapproval process confirms you qualify for the loan amount you need to buy the home you want.

On average, it takes 1-5 days to get a VA preapproval letter after submitting all required financial documents. Preapproval can be as fast as 24 hours if you have excellent credit and provide complete information upfront.

Factors that determine your preapproval timeline:

• Completeness of your application and supporting documents
• Your credit score and history
• Your debt-to-income ratio
• Verification of your income and assets

I recommend having 6 months of bank statements, 2 years of tax returns, a copy of your VA Certificate of Eligibility, and other key financial paperwork ready when starting the preapproval process to speed things along.

Shopping and Going Under Contract

Once preapproved, you can start seriously looking for your new home. Scouting listings, attending open houses, and making offers is an exciting part of the journey! However, this stage is highly variable in duration.

It could take weeks or months depending on your criteria, market conditions, and how picky you are about finding “the one.” The good news is preapproval allows you to act quickly when you do find a home you love.

You’ll make an offer via a purchase agreement contract. If the seller accepts, the home goes “under contract” meaning you and the seller are legally obligated to complete the sale.

Expect it to take 1-2 days to negotiate a contract after your offer is accepted.

Loan Processing Period

After your purchase agreement is signed, your lender shifts into high gear, kicking off the underwriting process with loan processing.

Processing involves verifying all the financial information and documentation you provided when applying for preapproval. Expect your lender’s processing team to request any missing documents needed to confirm:

• Income – Pay stubs, W-2s, tax returns, etc.

• Assets – Bank statements, investment accounts, etc.

• Credit history – Credit report review

• Liabilities – Bills, loans, credit card statements, etc.

• Down payment – Documentation of funds if required

• Eligibility – Certificate of Eligibility and any other VA requirements

The loan processing phase typically takes 7-14 days. Delays can happen if you don’t provide requested documents quickly.

What determines your processing time:

• Responsiveness to document requests
• Complexity of your financial profile
• Loan program and product specifics

To keep your VA loan on track, stay in close contact with your loan officer during processing and submit required paperwork ASAP.

Loan Underwriting Period

Underwriting happens simultaneously with processing. This is when underwriters scrutinize your entire loan application and supporting documents provided during processing.

They will validate you meet all VA mortgage eligibility and qualification requirements based on:

• Credit history – Score, delinquent accounts, judgments, etc.

• Income/employment – Stability, continuity of income sources

• Assets/reserves – Funds and cash flow

• Liabilities and DTI ratio – Manageable monthly debts and obligations

• Collateral – Appraisal, title report, VA property guidelines

Underwriters issue loan approval after all underwriting conditions are cleared. The underwriting timeframe averages between 7-14 days but can take longer with complex loans or credit profiles. Rushed timelines often mean delayed approvals.

What impacts your underwriting time:

• Responding to underwriter requests and questions
• Your credit, income, and asset mix
• Loan program guidelines and overlays

Stay in constant contact with your loan officer during underwriting to provide any needed info ASAP to prevent delays.

Home Appraisal Timeline

Every VA loan requires a home appraisal to ensure the property meets VA minimum property requirements. Appraisals are typically ordered 1-2 weeks before closing.

The appraisal must be submitted to the lender 5-10 days before closing. However, appraisers are busy, so schedule yours as early as possible.

The appraisal involves both a site visit to the property and market data research. It usually takes an appraiser 5-10 business days to complete a home appraisal.

What factors determine your appraisal timeline?

• Appraiser availability and volume
• Property location

Communication is critical here. Immediately contact your loan officer if your appraisal deadline is at risk of being missed. Missed appraisal due dates mean delayed closings.

Closing Timeline for VA Loans

You’re almost at the finish line! Closing day is when you review and sign your final loan documents, then receive the keys to your new place.

It typically takes 1-2 days to close the loan after the final underwriting approval. However, your closing is subject to the seller’s timeline as well.

Coordinate with your real estate agent to schedule a closing date and time that works for all parties. Allow at least 1-2 hours for the closing appointment.

What sets your VA loan closing timeline:

• Seller’s timeline and availability
• Title company and lender coordination
• Late underwriting approvals

Stay flexible with your schedule as your closing date nears in case it needs to get pushed back a day or two. Maintain contact with your agent for status updates.

Tips to Speed Up the VA Loan Process

Here are some key tips to help expedite your VA loan timeline:

• Get preapproved early – This gives you a jumpstart on documentation and underwriting

• Be organized – Maintain detailed records of all financial info needed

• Follow up quickly – Respond ASAP to lender and underwriter requests

• Provide complete info upfront – Don’t make the lender chase you for paperwork

• Avoid major purchases – Don’t buy cars, furniture, etc. while in process

• Stick to your timeline – Meet all deadlines set by your lender

• Use a reputable lender – Utilize an efficient lender known for fast VA loan turn times

The bottom line is that an experienced lender and proactive borrower can trim the typical VA loan timeline down to 30 days or less. So choose your lending partner wisely and be ready to act quickly!

The VA Refinance Timeline

If you already have a VA loan, refinancing with the VA Interest Rate Reduction Refinance Loan (IRRRL) program can help lower your rate and monthly payment.

Many factors like your loan program, amount, and property type make VA refi timelines hard to pin down. However, in general you can expect a 15-30 day turnaround from application to closing for a VA streamline refinance, which is faster than a VA purchase mortgage.

Next Steps to Getting Your VA Home Loan

Now that you know what to expect timeline-wise when getting a VA mortgage, you need to take action and get the ball rolling! Here are some key next steps:

• Check your VA loan eligibility
• Research top VA lenders
• Pick a lender and get preapproved
• House hunt with your agent
• Make offers and get under contract
• Provide documents to your lender quickly
• Stay on top of appraisal scheduling
• Set your closing date once underwriting clears

With a trusted VA lender guiding you, a bit of diligence on your part, and a little luck, you could be moving into your new place in as little as 30 days! I wish you the best of luck on your VA home loan journey.