Many first time VA home buyers wonder how long it will take to buy a home with a VA loan. There is no straightforward answer. The amount of time before you can move into your new home depends on a number of factors.
We at San Diego VA Home Buyers Center have helped countless veterans secure their San Diego VA loans quickly and with little hassle. Through our thirty years of working with veterans we’ve mastered every aspect of the VA loan approval process.
There is a persistent rumor that VA loans take a long time to close. This is simply not the case. Most VA loans can close within 30 to 45 days. It is standard for the mortgage industry in general.
According to Elli Mae, for the last eight months of 2014, the average VA loan closed in 39.6 days, while the average conventional loan closed in 38.9 days. The difference is negligible.
Here are the major items that could affect how long it takes for a VA loan to close. Knowing these factors can help you prepare for a VA loan purchase and speed up the process.
Pre-approval is the number one way to shorten the time before you can move into your new VA loan approved home. A pre-approved buyer meets a lender’s basic requirements, making him highly likely to qualify for a loan. It eliminates a great deal of uncertainty from the process.
A buyer should seek pre-approval as quickly as possible. Many lenders advise getting pre-approval months before starting your home search. An early start allows the buyer to deal with any potential eligibility roadblocks before it’s time to find a home.
The VA Appraisal
A home to be purchased by a VA loan requires a special appraisal. It is known as a VA appraisal. Only VA certified appraisers are qualified to perform it. The VA lender orders the appraisal, which is completed in little over a week on average. At San Diego VA Home Buyers Center we can usually tell if a home will meet appraisal requirements, saving you the hassle of pursuing one that doesn’t.
Does the VA Appraisal Call for Home Repairs?
If the VA appraisal calls for repairs to be made before approval, it can significantly affect the approval timeline. Extensive repairs may even push out VA loan approval weeks or possibly months.
Appraisal value may also negatively impact the timeline if it falls below purchase price. In this case the buyer may hesitate and decide to keep the home on the market for a non-VA approved loan.
Underwriting a VA Loan
After the appraisal process is complete, a VA loan is subject to final underwriting. The closing date may be pushed out if an underwriter needs more documentation or finds an eligibility issue. We can almost always foresee any underwriting problems and help you avoid them.
We Prepare You For Every Step of the VA Loan Approval Process
We’ve helped countless veterans quickly and effortlessly secure their VA home loans and we can help you too. With over thirty years of experience, we are uniquely positioned to service all the home buying needs of veterans in San Diego and throughout California. You can reach us seven days a week via email at firstname.lastname@example.org or by calling Dan Cauffiel at (619) 261-9954.