How Long Does a VA Home Loan Take USA 2021
How Long Does a VA Home Loan Take?
Buying a home through a VA loan comes with many advantages but there are always some whispers that revolve around the VA loans and confuse the potential VA home loan borrowers and sellers as well. Today, we are going to clear all these gossips once and for all.
The main question that comes into the mind of buyers and sellers is how long does a VA home loan take to get close? Well, the fact is VA home loan close around the same time as other home or mortgage loans. It takes around 45-55 days to close a VA home loan as per the recent statistics.
The average loan closing period of conventional home loans or mortgages is between 45-47 days. In comparison to the conventional home loan VA home loan does take 4-5 days extra but it is worth waiting for. VA home loans are government-backed home loans that come with 100% financing support.
VA home loan program is established by the U.S Department of the Veterans Affairs (VA). It is a guaranty program designed for the veterans as a token of their services to the nation. Due to the guaranty, the VA home loan program has relaxed and flexible eligibility requirements. Borrowers don’t have to pay any prepayment penalties or an application fee.
The rate of interest is quite lower in comparison to traditional home loans, repayment terms are longer and flexible.VA home loans have limited closing costs and they don’t even require mortgage insurance. If any veteran has purchase the home with traditional home loans but struggling with monthly repayments then they can also apply for a VA home loan and get the refinancing on their mortgages.
Last but not least, VA home loans require a $0 down payment and you will get the full loan amount for the home you will purchase. VA home loan comes with 100% financing support, which means it is fine if you don’t have money to make any kind of payment in front.
Factors That Determine How Long Does a VA Home Loan Take USA 2021?
Determining the closing timing of a VA home loan process depends on various factors at every stage of the VA home loan process. These delaying factors are not entirely the fault of the Department of the Veteran Affairs or buyer but they could also happen due to the seller. If everything goes smoothly then there are chances that you may close your VA home loan sooner than expected.
There are mainly 5 stages of closing a VA home loan and every stage has its struggle which can make the VA home loan process longer than expected. Let’s discuss these factors in detail:
Stage 1/ Factor 1- Getting Pre-Approved
Pre-approval helps to fasten the closing of the VA home loan process. We advise the borrower to start the pre-approval 2or 3 months before you want to shortlist your homes. When a borrower is pre-approved it gives them to start the house hunting with the certificate of 100% financing. Once you find your dream home we can start the VA home loan process and close it as soon as possible if the seller doesn’t have any problem.
However, one can face the problem of getting pre-approved quickly if there is any financial complexity or if the potential borrower doesn’t meet all the requirements. Therefore those 2-3 months give the buyer time to get eligible for a VA home loan.
Stage 2/ Factor 2- Different Timelines
There are chances that the timing of buyer and seller doesn’t match which can cause the delay for the VA home loan closing process. Sometimes sellers are not ready to move out as they might be waiting for the end of the school year or if their new is not ready yet.
The buyer might face a similar problem they might want to delay the process due to job obligation or various other reasons. Whatever the delaying cause is both parties have to agree on a closing date. This could either move up the VA home loan closing date or delay it further.
Stage 3/ Factor 3- VA Appraisal Timing
When a home is a purchase under the VA home loan process. It needs a VA appraisal. Getting a VA appraisal takes at least 10 days in urban areas and if your dream home is in a rural area with less population it could take more than expected time.
Stage 4/ Factor 4- If Any Repairs Required?
Getting a VA appraiser on a VA home loan is quite an important aspect. The VA appraiser decides the home suitable to live in. If a VA home loan appraiser declares a home “Subject to Repair” then it could delay the VA home loan process.
VA appraiser could fast forward or slow down the closing of the VA home loan process. When under the VA appraiser process, the lender verifies the value of the home. If the value of the home falls short of the loan money then it could lead to a delay in the VA home loan process. To make the process quicker a buyer can negotiate the value of the home.
The buyer can ask the seller to reconsider the value of the home
Buyer can ask the seller for a price reduction
Buyer/ seller can make up the difference in cash
The buyer might have to end the deal and look for other options
Stage 5/ Factor 5- How Lon Will The Underwriting Take?
How long will the underwriting take will determine how long does a VA home loan take? After the VA home loan appraiser process. All the VA home loan files are subject to underwriting. Now, the underwriter will go through every paper and every process to verify the VA home loan.
If underwriter finds every document and eligibility up to the mark, they will close VA home loan on time, and if they find any error in any stage or any document they can ask for the new documents which might delay the closing of a VA home loan.
Now, don’t get dishearten you have completed the whole VA home loan process and now it is the last step only so be patient and co-operate with the underwriter during this step and get close to your VA home loan.