Underwriting is a process that doesn’t happen overnight. VA home loans and almost any other type of loan, average between 30 and 45 days for underwriting. While it seems like a lot, there’s a good reason for it.
What you need to know is how you can speed the process along to get your loan to the closing table faster.
Why Does it Take So Long?
Do 30-45 days feel like an eternity? It just might when you are trying to buy a home or even refinance your existing mortgage. In reality, it’s a short amount of time that is necessary to make sure that the loan is in the best interest of not only you but the lender too.
Even if you are preapproved for a VA loan before you find a home, the lender still has to do their due diligence. They need to verify all of the information you provided regarding your income and assets. They also need to order the appraisal and title work. Unfortunately, lenders don’t have control over how long either of these items takes.
The appraisal is dependent on the seller’s cooperation, as the appraiser needs access to the inside of the home to do the report. The title search is a time consuming process. The title examiner needs to make sure that there aren’t any outstanding liens on the property as well as anyone out there that can claim ownership to the property.
How Can you Speed Things Up?
The good news is that you do play a role in how fast your VA loan gets to the closing table. The below habits can help you get your loan approved faster.
For starters, you should provide the lender with a complete package. No matter which lender you use, you should provide:
- Paystubs from the last 30 days
- W-2s from the last 2 years
- Bank statements from the last 2 months
- Contact information for your employer
- Your Certificate of Eligibility
- Any award letters if you are on disability, social security, or you receive retirement pay
- Tax returns for the last 2 years if you are self-employed or work on commission
Providing the lender with these items upfront can help speed things along. Then when the underwriter asks for clarification or more documents, you should provide them quickly. In fact, it’s important to stay in contact with the lender to make sure that you are always up to date on what they need. The quicker you provide what the lender needs, the faster they can get through the underwriting process.
The Turnaround Time Depends on the Lender
It’s important to understand that each lender has their own turnaround time. As you shop around for the best interest rate and term, ask lenders about their turnaround time. Take this into consideration as you decide which lender is right for you.
Some lenders have a small amount of staff and take longer to turn loans around. Other lenders have a system down that helps them turn around loans much faster. Asking ahead of time can help you understand just how long your loan may take.
Like we said, though, on average, you should expect to wait 30 – 45 days for a VA loan to be closed. That’s about the average for any type of loan, though. VA loans aren’t any slower than any other loan on the market. It’s all up to the lender that writes you the loan.