Can a VA Home Loan Close in 30 Days?
On average, a traditional VA home loan purchase will take 40 to 50 days to close. It is possible to close on a VA home loan in as short a timeframe as 30 days, and VeteransLoans.com is known for having some of the shortest turnaround times in the industry.
However, there are multiple variables that come into play when determining the timeline of a home purchase and home loan approval.
How Long Does it Take a VA Loan to Close?
A VA loan home purchase is one of the most involved types of VA loans and will typically take 40 to 50 days to close. Let’s break down the traditional VA loan home purchase process.
Finding a Home
The process of finding a home and how long it takes to go under contract varies from buyer to buyer. In today’s current market, this process can look longer. The process of purchasing a home typically involves these steps:
- Finding a qualified realtor to advocate for you as a homebuyer.
- Shopping for a mortgage lender (your realtor may already have a preferred lender, which could make this step easier!)
- Getting pre-approved for a home loan.
- Shopping for and finding a home you want to purchase.
- Submitting an offer and getting accepted.
- Negotiating and renegotiating the terms of the home purchase with the seller.
While pre-approval is not necessary in order to submit an offer on a home, it does make your offer more competitive and can significantly speed up the home purchasing process.
The Loan Application Process
There is a lot that happens from the moment you go under contract through the moment you close on a home loan. It is not a process that happens overnight and there is a lot of work that has to be completed in the background in order for you, as the borrower, to successfully secure a home loan.
The efficiency and speed of the loan approval process can be highly improved by the borrower’s preparedness, communicativeness, and responsiveness. The more prepared, involved, and responsive you are as a borrower, the smoother and faster this process will go.
There are multiple steps involved in the loan application process:
- Initial Underwriting
- Pest Inspection
- Appraisal
- Final Underwriting
Initial Underwriting
Once the borrower submits all of the initial necessary information and documentation, their loan application process is ready for initial underwriting. After initial underwriting is completed, the borrower’s loan application is typically approved, provided they meet several stipulations.
These stipulations and requirements will vary and could entail the borrower providing further information and documentation.
Pest Inspection
In certain states, the VA requires a wood-destroying pest inspection. The VA also requires a wood-destroying pest inspection in low-rise or high-rise condominium units if the VA appraiser observes a potential pest problem. In most states, the VA requires that the borrower does not pay for the pest inspection to avoid conflict of interest.
If a pest inspection is required and evidence of wood-eating pests is discovered in the home, the home will need to undergo pest removal and potential repairs of any damage caused by the pests prior to the home loan application being approved. Another pest inspection will need to be conducted after repairs are completed to prove to the underwriter that all pests have been successfully removed and any damage from the pests is repaired.
To learn about pest inspection requirements in your state, reach out to your VA loan specialist or your realtor for more information.
Appraisal
The appraisal is part of the VA home loan approval process. Independently contracted VA-approved appraisers conduct appraisals for VA home loans. There are multiple outcomes of an appraisal that could delay the closing of a home loan:
- The appraiser discovers needed repairs in the home.
- The appraised value of the home is lower than the selling price.
Both of these scenarios are unfortunately common and can easily push that closing date further down the road. It’s important that borrowers be prepared for these kinds of events and have terms negotiated with the seller beforehand for these types of circumstances.
Final Underwriting
When all of the terms provided after initial underwriting are met, your VA loan application will be ready to submit for final underwriting. Provided you met all of the stipulations successfully, you should be approved for your home loan!
But there are instances where the underwriter will need further information, clarification, or action taken before approving your home loan.
How Long Does a VA Cash-Out Refinance Take to Close?
The process of a VA cash-out refinance is very similar to a home purchase. However, the timeframe of this home loan can be shorter since the borrower does not need to spend time shopping for a home, submitting a home purchase offer, or negotiating with a seller.
In a VA cash-out refinance, the borrower does not need to provide as much information upfront compared to a home purchase. However, there are still variables to this process that could make it take more time, such as the appraisal and pest inspection processes.
How Long Does a VA Streamline (IRRRL) Loan Take to Close?
The VA Streamline or IRRRL (Interest Rate Reduction Refinance Loan) is the VA loan with the greatest potential to take the shortest amount of time. This loan could close in as few as 2 weeks or as long as 30 days. Once again, it depends on a number of variables.
Be Prepared and Be Flexible
Is it possible for a VA home loan to close in 30 days or less? The short answer is, yes. But keep in mind that this is not the norm and chances are it will take closer to 40 to 50 days to close on your VA loan.
The best course of action is to be prepared for the home loan approval process to take as long as it possibly could, be as prepared as possible and have all your documentation ready to go, remain communicative and responsive with your lender, and be flexible when things don’t go exactly to plan.
Ready to Get Started?
If you are just getting started in the VA home loan process, we would love to help you navigate through the variety of mortgage options available to you to find the product that best fits your needs and goals!
The loan specialists at VeteransLoans.com can determine your eligibility and get you pre-qualified in a matter of minutes. Call 1 (888) 232-1428 to speak with a loan specialist today!
VeteransLoans.com offers conventional, FHA, and VA products.