Do Conventional Loans Close Faster Than Other Mortgages?

Getting ready to close on a new home can be an exciting yet stressful time. If you’re obtaining financing through a mortgage, one question you may have is whether conventional loans allow for a faster closing process compared to other loan types like FHA or VA loans.

The short answer is yes, conventional loans do generally close faster than government-backed mortgages like FHA and VA loans However, the specific timeline can vary based on your unique financial situation Below we’ll explore why conventional loans close more quickly and provide tips for closing any mortgage efficiently.

Why Do Conventional Loans Close Faster?

This is because conventional loans usually close faster than FHA or VA loans for a few main reasons:

Less paperwork and underwriting requirements

Conventional loans are provided by private lenders and banks, while FHA and VA loans are government-insured FHA and VA loans require more paperwork, compliance checks and underwriting due to their governmental oversight.

For example, FHA loans require a close look at your credit history and the amount of debt you have compared to your income. VA loans require a veterans status assessment. These extra requirements add time to the closing process.

No appraisal paperwork

Conventional loans may qualify for an appraisal waiver if you have sufficient equity, allowing you to skip the lengthy appraisal process. But appraisals are mandatory for FHA and VA loans, requiring detailed appraisal paperwork that can drag out closing.

Preapprovals are easier

Getting preapproved for a conventional loan is generally quicker than securing an FHA or VA preapproval. Since conventional loans involve less rigorous financial checks, lenders can preapprove you more rapidly, shaving time off the back end of the process.

Fewer repairs or conditions

Government loans like FHA and VA mortgages require lenders to scrutinize the home’s condition closely and often demand repairs prior to closing. Conventional loans have less stringent property requirements, meaning fewer repairs and faster closings.

Average Closing Timelines

While closing dates can be different for each person, here are the typical times for each type of mortgage loan:

• Conventional loans: 42 days
• FHA loans: 43 days
• VA loans: 40 to 50 days

As you can see, conventional loans typically close a few days faster than FHA or VA loans. However, VA loans can sometimes match conventional closing speeds when factors like your credit profile or the home’s condition don’t slow things down.

Tips for Closing Your Mortgage Faster

While conventional loans close quickest on average, you can expedite any mortgage closing by:

• Getting preapproved – Being preapproved shows sellers you’re serious and can help speed up closing
• Responding quickly – Promptly provide requested paperwork to avoid delays
• Minimizing changes – Don’t change jobs or make major purchases which require underwriting updates
• Scheduling inspections early – Inspections and appraisals take time to book and complete
• Working with experienced agents – Experts know how to keep the process moving efficiently
• Organizing documents – Have all paperwork ready to provide to lender when needed
• Maintaining contact – Follow up with lender regularly to address any issues quickly

The most important thing is clear communication. Connect with your lender often to ensure you get qualified for a mortgage and close in the shortest timeline possible.

Closing FAQs

Still have questions about closing and if conventional loans accelerate the process? Here are answers to some common queries:

How long does closing take with conventional loans?

To close a conventional loan, it usually takes about 42 days, but this can change based on your financial situation. Get preapproved to help speed things along.

Do conventional loans close faster than FHA?

Yes, conventional loans typically close a little quicker than FHA and VA loans thanks to less paperwork. But government-backed loans can close rapidly with ideal conditions.

What is the fastest way to close on a mortgage?

Closing in as little as 10 days is possible with cash purchases since mortgages require financing approvals. Getting preapproved is the fastest option if financing with a mortgage.

Do higher down payments close faster?

Generally yes, larger down payments indicate you’re financially prepared for homeownership and less of a lending risk. Consider putting down 20% or more if possible.

Can I close in less than 30 days?

It’s challenging but possible to close in under 30 days, especially if preapproved. Communicate clearly with your lender and real estate agent to expedite the process.

What delays closing?

Closing delays often stem from setbacks in the appraisal, home inspection findings, employment verification issues or mistakes on paperwork.

The Bottom Line

Conventional loans typically close in around 42 days, faster than the average FHA or VA loan. But various personal factors from your credit to the home’s condition also impact the closing timeline. Following mortgage best practices and communicating promptly with your lender can help expedite any loan closing.

While the closing process is different for everyone, understanding what slows or speeds up closing will set the right expectations. With an experienced real estate agent and a organized approach, you’ll be ready to seal the deal on your dream home efficiently.