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VA Home Loan vs. Conventional Mortgage

As lenders who specialize in working with VA home Loans, our team at 1st United Mortgage answers questions every day about the VA Loan process. After questions about credit scores, perhaps the next most common question we get is regarding how long the closing process is for a VA Home Loan. For some reason, there exists a myth that VA Loans take longer and create more stress than a traditional mortgage. In our experience, the exact opposite is true!

In fact, comparing VA Home Loan closings to traditional mortgages shows there is barely a difference at all. According to Ellie Mae’s Origination Report, in 2019 VA Home Loans closed in approximately 49 days while conventional mortgages closed in 47 days.

Things That Impact Your Closing Timeline

In order to have your closing process go as smoothly and quickly as possible, there are some factors to keep in mind.

  • Pre-approval: Getting pre-approval means a loan officer has reviewed your finances and determined how much you can borrow, what your payment would be, and your interest rate. This is significant because it signals to sellers that you are verified for your loan, which makes you more appealing and could help your offer get accepted quickly. We suggest getting pre-approved a couple months before you even begin your home search. Click here to work with one of our specialists today to start your pre-approval process. 
  • Scheduling issues – Sometimes there are conflicts among the many schedules that are involved on closing day. Getting the closing agent, attorney, lender, buyer, seller, or title company representative together on the same day is tricky and could push back your closing date a handful of days.
  • Sellers timeline – Similarly, the sellers may have a completely different timeline that works best for them based on where they are moving to next. Perhaps they want to finish a school semester or have another closing that gets delayed. Ultimately, both buyers and sellers have to agree on a date to make it all the way to closing.
  • Appraisal – Occasionally there are issues with the appraisal. For a VA Home Loan the appraisal is mandatory. Not only will the lender require verification that the home value equals the asking price, the property must also meet the VA’s Minimum Property Requirements. These MPRs protect veterans from buying property that is dangerous or considered a money pit.  These are typically done in 10 days, but sometimes may take longer. Also, if there are any significant issues found during the appraisal, the buyer and seller might go back to negotiations.

Though it’s impossible to nail down exactly how long the VA Home Loan process takes to close, it’s no more difficult than a traditional mortgage. Thanks to its unique benefits, such as no down payment and low credit options, we have helped hundreds of clients use the VA home Loan program to get into the home of their dreams.

Contact us today if you are ready to start the VA Home Loan process or just want to check your eligibility! 

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