The average closing timeline for VA buyers is marginally different from conventional loans. Here we take a look at the average time to close and what factors play into that timeline.
Buying a home is a multi-step process, and everyone's 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?” There's a lingering myth that VA loans take forever to close, but that's simply not the case.
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 don't find much difference between VA and conventional loans.
This guide will review five key factors affecting the VA loan process timeline.
The VA Loan Purchase Timeline
Before embarking on your VA homebuying journey, it is helpful to understand the general VA loan timeline.
1. VA Loan Preapproval
Getting preapproved for a VA loan is one of the best ways to shorten the homebuying waiting game. A “preapproved buyer” has met a lender’s basic requirements and is likely to obtain a loan, provided that certain conditions are met. VA loan preapproval shows that a buyer will likely obtain financing, eliminating potential uncertainty and delays.
It’s best to get preapproved for a loan as soon as you consider buying a home. Most lenders recommend getting preapproved months before starting the actual house hunt. This provides plenty of time to clear up any eligibility or income issues before falling in love with a home.
2. Buyer and Seller Negotiations
Just because a home is on the market doesn’t mean the sellers are ready to move immediately. Perhaps the sellers want to stay until the end of the school year. Maybe they have to wait until their new home is complete.
Buyers and sellers must agree on a closing date, so make sure you understand the seller’s timeline and that it aligns with yours. This can heavily impact your VA loan timeline by either speeding it up or delaying the entire process.
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3. The VA Appraisal
A home purchased with a VA home loan must get a VA appraisal. Only a VA-approved appraiser can perform this assessment. The home must meet VA Minimum Property Requirements (MPRs) and could delay the process if not.
VA lenders are responsible for ordering VA appraisals, which are generally completed within 10 days.
4. 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.
5. Underwriting
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.
How to Speed Up the VA Loan Process
At the end of the day, it’s very difficult to predict how long the purchase process will take. However, there are some factors that can help expedite the process.
You may be able to speed up your VA loan process by:
- Getting preapproved
- Working with an experienced VA lender
- Choosing a reliable real estate agent
- Selecting a home in good condition that meets VA MPRs
It’s important to be flexible, give yourself wiggle room and understand that homebuying looks different for everyone.
Speak with a Veterans United VA loan expert at 855-870-8845 to start your home loan journey!
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