Delays in VA Home Loan Processes

Low mortgage rates, great home prices and summer weather add up to one thing – a high demand housing market.  Veterans looking to use their VA home loan benefits are not immune from this frenzied housing cycle.  More veterans are taking advantage of the amazing benefits that the VA offers them through the utilization of a VA mortgage.  However, what impact does the traffic jam of Veteran buyers have on the VA Mortgage process?  Ordering certain VA related items may take just a bit longer however, you can still close your VA loan within 30 days with the right lender steering the course for you.

VA Appraisers Taking Longer

VA allows VA appraisers 7 business days in the Arizona Real Estate market to either complete a full VA appraisal report OR notify the VA buyers mortgage lender that they are having trouble making value meet the home’s price point.  When VA demand picks up, VA appraisers tend to respond a bit slower than normal.  It’s almost a sure bet that the VA appraiser may take the full 7 business days to complete an appraisal.  It’s also likely that VA appraisers may take a little longer to complete final inspections related to property repairs.

VA Certificate of Eligibility Delays

One of the key components of a VA home loan is a VA Certificate of Eligibility.  This is a form that a lender orders from the VA.  You guessed it, when VA is rocking and rolling getting a VA Certificate of Eligibility may take a little longer for a lender to receive (when manual processing is required).  Best bet, plan ahead and get your lender to order one early on.

Other VA Delays

While the 2 times above are the most crucial and time sensitive, the best attitude to take in an environment as active as today’s Real Estate market is the same as the early bird that’s getting all those worms.  You want to assume that because of all the Veterans using their VA mortgage benefits, processing anything VA mortgage related may take a bit longer.   Entitlement reinstatement, Certificate of Eligibility corrections and so on should all be identified early on and addressed.  Don’t go under contract without crossing your VA “t’s” and dotting your VA “i’s”.

VA Transactions in 30 Days

Despite all the potential for delays, VA transactions can still be closed within 30 days.  With the right lender coaching everyone through the process, veterans can still successfully close in 30 days.

By Jeremy House