How Long Does it Take to Close a VA Loan?
In most cases, it takes between 40 and 55 days to close a VA loan for veterans, service members, and their families when buying a home.
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- Generally, VA home loans take approximately 40 to 55 days to close, similar to the timeline for conventional loans.
- VA home loans offer various benefits to veterans, service members, and their families, including no down payments and reduced closing costs.
- There are several steps veterans and their families can take to reduce the closing time for a VA loan, including seeking early preapproval, selecting a home in good condition, and working with experienced lenders and realtors.
With benefits like no down payments and no private mortgage insurance, VA home loans are a valuable resource for veterans, service members, and their families. These loans also offer competitive terms and interest rates, fewer closing costs, and no loan limits with full entitlement. Generally, closing on a VA home loan takes about the same amount of time as closing on a conventional loan—the average time to close on a VA loan is approximately 55 days, compared to 48 days for conventional loans.
How Long Does It Take to Close a VA Home Loan?
Buying a home is a multi-step process, and there is no one-size-fits-all guideline on how long you may wait to close on your loan. However, VA home loans follow fairly standard timelines, similar to conventional loans. On average, a veteran or active-duty service member can expect to wait 40 to 55 days to close on their VA home loan.
How to Close on Your VA Loan Faster
Veterans, service members, and their families can take the following steps to expedite the VA home loan process:
- Get preapproved early. Early preapproval is crucial for avoiding delays later in the home-buying process. Pre-approval involves a lender evaluating your financial health, including your income, debt, and credit score, to determine how much they are willing to lend you.
- Work with an experienced VA lender. Working with a lender familiar with VA loans can help veterans buying homes avoid unnecessary setbacks. Your home loan lender will determine the details of your loan, including the interest rate, discount points, and other closing costs. These details vary from lender to lender, so it’s important to choose a lender that works for you.
- Choose a reliable real estate agent. When buying a home, it’s essential to work with a real estate agent who is experienced in VA loan transactions and can help streamline the negotiation and paperwork process.
- Select a home in good condition. Choosing a home that already meets the VA’s Minimum Property Requirements, or MPRs, can expedite the approval process by avoiding delays caused by repairs or issues identified during the appraisal.
- Be flexible with your timeline. When shopping for a home, try to maintain some flexibility in your expectations for the closing date, as unforeseen issues can arise during the process that may delay closing.
Key Stages of the VA Loan Process
There are five key stages of the VA loan process: preapproval, buyer and seller negotiations, VA appraisal, repairs and reconsideration of value, and underwriting and final approval.
Preapproval
Getting preapproved for a VA loan before starting the home search can significantly expedite the closing process, as you’ll already know how large a loan you can afford. Preapproval also addresses eligibility and income issues early on, helping avoid delays.
Buyer and Seller Negotiations
Negotiations between buyers and sellers regarding the closing date can affect the VA loan timeline, as can the sellers’ circumstances and willingness to cooperate. You and the seller can also negotiate who will cover the closing costs, such as insurance, taxes, the VA appraisal fee, and more. These costs are generally based on the loan amount, property location, lender-specific fees, your VA funding fee status, and whether you’ll be paying for your real estate professional.
VA Appraisal
A VA appraisal is necessary for any home purchased with a VA loan. Once you and the seller have signed a purchase agreement, your lender will request a VA-approved appraiser to estimate the home’s value. The appraisal provides a professional opinion of the home’s value and whether it meets the VA’s minimum property requirements. It ensures that the stated value of the property is based on the facts, not just the seller’s opinion.
The VA appraisal process typically takes between 10 and 20 days, though property condition and appraiser availability can cause delays. If the appraiser determines that the property does not meet the VA’s Minimum Property Requirements, it may significantly extend the closing timeline.
Required Repairs and Reconsideration of Value
Any repairs requested by the VA appraiser can delay the closing process, especially if extensive work is needed. All repairs must be completed before closing, which can add significant time to the process. While the VA does not require home inspections, they are highly recommended for every borrower to ensure there are no hidden issues with the property.
If your VA appraised value is below the purchase price, you may be able to renegotiate the sale price to one that is equal to or less than the appraised value. If the seller will not negotiate, buyers may need to adjust their loan to accommodate the higher purchase price.
Underwriting Process, Final Approval, and Closing
The underwriting process occurs after the appraisal and involves final verification of the borrower’s eligibility and financial status. The underwriting process typically takes 5 to 15 days, depending on the complexity of the loan and the lender’s efficiency. However, additional documentation requests or concerns about eligibility can delay the underwriting process.
After underwriting, your loan will proceed to the final approval and closing stages. Closing dates may change based on underwriting results or documentation issues. Your lender is required to provide you with a Closing Disclosure at least three business days before closing.
Closings may occur at a title company, escrow office, or attorney’s office, and you can expect to sign documents like the mortgage, the note, and the deed. Depending on your loan and the terms of your agreement with the seller, you may be required to pay some closing costs at the time of closing.
Common Questions About VA Loan Closing Times
Can a VA Home Loan Close in 30 Days?
It may be possible for a VA home loan to close in as soon as 30 days if the buyer is preapproved, the appraisal identifies no issues, and the underwriting process proceeds smoothly. However, it’s more typical that the process will take 40 to 55 days.
How Can Appraisal Delays Impact My Closing?
Your lender will request the appraisal in a timely manner after you submit your loan application. Lenders should request the appraisal early in the loan process to avoid potential delays.
What Happens if the Closing Is Delayed?
If your VA home loan closing is delayed, your realtor and lender will guide you through the necessary steps to ensure a smooth processing.
Close on Your Dream Home Today
Closing a VA loan typically takes between 40 and 55 days, which is similar to the timeframe for closing a conventional loan. Veterans and active-duty service members should take proactive steps, such as getting preapproved early, selecting a home that meets VA standards, and working with an experienced lender, to help ensure a smoother and quicker closing process.
