The VA Loan Process, Step by Step
What happens between deciding to buy and getting the keys, and where delays usually come from.
Buying with a VA loan follows the same broad path as any mortgage, with a few VA-specific steps: the Certificate of Eligibility, the VA appraisal and the funding fee. This guide walks through each stage in order, so you know what to prepare before it is needed.
The eight steps
| Step | What happens | Typical time |
|---|---|---|
| 1. Get your COE | Prove eligibility and see your entitlement and funding fee status | Minutes online or through a lender, longer by mail |
| 2. Check your budget | Estimate the payment, residual income and cash for closing costs | An afternoon |
| 3. Get preapproved | A lender reviews credit, income and assets and issues a preapproval letter | 1 to 3 days |
| 4. Find a home and make an offer | Your agent includes the VA amendment and asks for seller credits if needed | Varies by market |
| 5. VA appraisal and home inspection | The VA-assigned appraiser sets the value and checks minimum property requirements | About 1 to 2 weeks |
| 6. Underwriting | The lender verifies everything and clears conditions | 1 to 3 weeks |
| 7. Closing Disclosure | You receive the final terms at least 3 business days before closing | 3 business days |
| 8. Closing | You sign, pay closing costs and get the keys | 1 day |
From accepted offer to closing, many VA purchases take about 30 to 45 days, though the time varies with the lender, the appraisal and how quickly documents come in.
What to prepare early
- Your DD214 or statement of service.
- Pay stubs for the most recent 30 days and W-2s for the past two years.
- Federal tax returns for the past two years, especially if you are self-employed.
- Two months of bank statements, and an explanation for any large deposits.
- Documents for other income, such as a VA disability award letter or retirement statement.
Where delays usually come from
- The COE needs manual review because records are incomplete. Request it before you shop.
- Appraisal repairs that must be finished before closing. See VA appraisal and minimum property requirements.
- New credit or job changes during underwriting. Hold off on big purchases until after closing.
- Missing pages in bank statements or tax returns. Send complete documents the first time.
Choosing a lender
The VA does not lend directly for most buyers. You go through a bank, mortgage company or credit union. Terms and fees vary, so the VA recommends contacting several lenders. Compare the Loan Estimates line by line: the interest rate, discount points, the origination charge and the cash to close. Our closing costs guide explains what each line means.
Run your numbers first
Before you talk to a lender, estimate your payment with the VA loan payment calculator, your price range with the affordability calculator and your fee with the funding fee calculator. Walking in with numbers makes it easier to spot an offer that does not add up.
Frequently asked questions
How long does a VA loan take to close?
Many close in about 30 to 45 days from an accepted offer, depending on the lender, the appraisal and how quickly documents are provided.
Can I make an offer before I have my COE?
Yes, but getting it first avoids delays and tells you whether you have full entitlement.
Does the VA approve my loan?
Most VA loans are approved by the lender under VA rules. The VA guarantees part of the loan.
When is the VA funding fee paid?
At closing. You can pay it in cash or add it to the loan amount; on a purchase it is the only closing cost the VA lets you finance. Borrowers who are exempt, such as most veterans receiving disability compensation, do not pay it.
What is the VA amendment to the purchase contract?
It is a clause VA buyers add to the contract saying they do not have to complete the purchase or lose their earnest money if the price is higher than the value set by the VA appraisal, unless they choose to go ahead and pay the difference.
Sources
- VA.gov: how to apply for a VA home loan
- VA.gov: purchase loan
- VA Home Loan Guaranty Buyer's Guide (PDF)
This page is educational and is not legal, tax or financial advice. Rules and rates can change, so confirm the details with the VA and your lender.