Once a loan officer has a completed loan file, income documents and a credit report, the application will be submitted to a VA underwriter for processing. Underwriters can take as long as 14 days to render a decision on underwriting a loan for individuals with a solid credit background.
Moreover, can a VA loan close in 30 days?
You Can Close in 30 Days
It is possible to close on a VA loan in as little as 30 days. This makes buying a home with a VA loan just as fast as a traditional mortgage. The key to a fast closing lies in making sure you have everything you need to speed things along.
Keeping this in view, how long does the underwriting process take?
How long does underwriting take? Underwriting—the process by which mortgage lenders verify your assets, and check your credit scores and tax returns before you get a home loan—can take as little as two to three days. Typically, though, it takes over a week for a loan officer or lender to complete.
How long does VA loan approval take?
On average, you can get approved and close on a VA loan in 30 to 45 days. Again, this will vary by lender and even by borrower, though. Below are the factors that affect your approval time.
One in every 10 applications to buy a new house — and a quarter of refinancing applications — get denied, according to 2018 data from the Consumer Financial Protection Bureau.
For all purchases, according to Ellie Mae, 74.3 percent of VA loans closed, compared to 74.1 percent of all mortgages. Conventional (non-government did slightly better than VA, with a 75.2 percent closure rate. In short, VA mortgages will close at a high rate and are less likely than the average loan to fail to close.
If you’re eligible, VA loans are fairly easy to qualify for, since there’s no down payment required, no minimum credit scores, and no maximum limit on how much you can borrow relative to income.
Being in underwriting usually means it’s in the queue for an underwriter to approve. If your lender used the desktop underwriting application to pre-qualify you (and most do, I forget what it’s proper name is) then unless you have a weird situation like being self employed, no news is good news.
Individual Lender Requirements
Generally speaking, lenders will require minimum credit scores of 580 to 620 to qualify for a VA loan.
If your VA loan application was denied, it could be because your income levels are too low. The best thing you can do is ask your lender for clarification. They’ll be able to tell you if your income was too low. If so, look for ways to increase your income if at all possible.
VA mortgage loans also come with minimum property requirements that can end up forcing home sellers to make many repairs. Because VA appraisals may increase their repair costs, home sellers sometimes refuse to accept purchase offers backed by the agency’s mortgages.
Don’t Take No For An Answer
In the overwhelming majority of cases, inexperienced loan officers or strict overlays are the reason for being denied for a VA loan. If your lender is not approved to do manual underwriting on VA home loans, you may be told you’re not approved without further explanation or options.