19 Feb Factors that could affect the Timeline of VA Loan Process
One of the most common questions associated with the Veteran’s mortgage and VA loan process is “How long does it actually take to close a VA loan?”.
While VA loans have comparatively flexible guidelines and minimal documentation requirements, it is vital to understand that buying a home is a multi-threaded process and the procedure might differ for individual cases.
On average, it takes about 40-50 days for a VA loan to close and if we dig into the numbers, there isn’t any difference between conventional loans and VA loans.
Factors that could affect the Timeline of VA Loan Process
Although it can be challenging to predict the period the accurate timeline for your loans, there are certain methods that can speed up the closing time of VA mortgages.
1. Getting Pre-approved– The smartest way to shorten the timeline is to get approved before applying for a loan. If you have met the eligibility criteria and other requirements, you might be able to eliminate certain delays and hefty procedures to get approved. So, when should a buyer get approved? According to VA-approved lenders, you should get approved months before the house hunt starts. This will streamline your VA loan process and you might be able to get approved sooner than you expected.
2. Setting a Closing Date– Another factor that affects the closing time of VA mortgage is “When are you planning to move in?”. Maybe the sellers of the house you selected are not ready to move out yet. It’s wise for both buyers and sellers to agree on a closing date, according to their convenience.
3. VA Appraisal- A VA home loan can only be approved if it gets a VA appraisal from the Department of Veteran Affairs. After ensuring that the amount you selected for the loan matches that property’s current value, the VA will send a VA appraisal in about ten days but it could take a little longer if it is situated in sparsely-populated regions.
4. Extensive Repairs- If the VA appraiser announces your chosen property subjected to repairs, it is necessary to get it repaired before the closing date. This could stretch the closing date to days or even months. The VA appraiser can also issue the loan value less than the actual cost of the home. If this happens, you can either ask the seller for a rate reduction, ask the VA for reconsideration of the appraisal value or look for a new property.
5. Final Underwriting- After getting approved by the VA, the mortgage requires final underwriting, which is to be signed by the beneficiary. This process might require you to submit additional documents. So, as soon as you are ready with all the documents, you will be able to move into your new home a little sooner.
Although the entire VA loan process might seem daunting and full of hurdles, it is also an exceptional chance to get your home with absolutely no down payments and lower interest rates. The things you could do to speed up the application procedure are to get pre-approved, find a VA-approved lender, choose an agent with extensive knowledge in VA loans and look for a home in good condition.