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 is different. 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.
Most VA loans close in 40 to 50 days, which is standard 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 a VA loan purchase timeline.
Before embarking on your VA homebuying journey, it is helpful to understand the general VA loan timeline.
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.
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 have to agree on a closing date, and that date could either speed up or delay the entire process.
A home purchased with a VA home loan must get a VA appraisal. Only a VA-approved appraiser can perform this assessment.
VA lenders are responsible for ordering VA appraisals, which are generally completed within 10 days.
The VA appraisal results can also hasten or hinder 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. Buyers can either:
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.
At the end of the day, it’s very difficult to predict how long the purchase process will take.
The lesson? Control what you can:
…and let go of what you can’t. Be flexible, give yourself wiggle room and get ready for an exciting journey!
Check out this contract guide for more information on things to avoid while in the contract phase.
Answer a few questions below to speak with a specialist about what your military service has earned you.
A VA loan is a mortgage option issued by private lenders and partially backed, or guaranteed, by the Department of Veterans Affairs. Here we look at how VA loans work and what most borrowers don’t know about the program.
Your Certificate of Eligibility (COE) verifies you meet the military service requirements for a VA loan. However, not everyone knows there are multiple ways to obtain your COE – some easier than others.