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A mortgage preapproval letter is usually good for 30 to 90 days, and some lenders will lock the rate for that time.

Having a letter of preapproval from a financial institution can help ensure that you’re ready to snap up a home you love.

What Is Mortgage Preapproval?

Mortgage preapproval has become an essential part of the home-buying process. Real estate agents often want to see a preapproval letter before showing houses.

And a letter shows sellers that you are serious about buying their home — even if you’re a first-time homebuyer — and that a mortgage lender is likely to give you a home loan of a specific amount quickly.

The lender will review your credit history, credit score, income, debts, and assets to determine the amount you tentatively qualify for.

Preapproval will help you focus on homes that are in your price range. Knowing how much of a mortgage you can afford is important when you can’t afford to waste time reviewing homes outside your range.

Mortgage Preapproval Process

The mortgage process starts informally for many would-be homebuyers.

Some buy into the 28% rule — spend no more than 28% of gross monthly income on a mortgage payment — and play with calculators like this home affordability calculator or the one later in this article.

Seeking mortgage preapproval means you’re getting serious. First, you’ll need to understand the different types of mortgage loans — fixed rate, adjustable rate, conventional, government insured (FHA, VA, USDA), jumbo — and what you can qualify for.

Then you’ll need to apply for a loan from one to several lenders and provide a good deal of documentation. Each lender will perform a hard credit inquiry, and you’ll receive a loan estimate within three business days.

If you’re shopping for a home loan, allowing multiple mortgage companies to check your credit within 14 or 45 days, depending on the credit scoring model being used, will minimize the hit to your credit scores.

How Long Does It Take to Get Preapproved?

It usually takes seven to 10 business days to receive a preapproval letter after submitting all the requested information.

Mortgage Preapproval Letter

Other than stating the specific amount you’re preapproved for, a mortgage preapproval letter may outline stipulations to gain the loan, such as maintaining your employment or not taking on any additional debt.

How Long Does Mortgage Preapproval Last?

Some lenders will make a commitment of 60 or 90 days. That time frame tends to work, since homebuyers typically shop for a home for eight weeks, according to the National Association of Realtors®.

Other lenders will issue preapproval for only 30 or 45 days.

Recommended: How Mortgage APR Works

Mortgage Prequalification vs. Mortgage Preapproval

Since they sound similar, it’s worth mapping out the difference between prequalification and preapproval.
Prequalification is a key first step, when borrowers tell lenders about their income, assets, and debts. Lenders use that unverified information, and usually a soft credit inquiry, to give a ballpark estimate of how much they might be willing to lend.

The response is quick: You can often get prequalified immediately or within a day or two. Just realize that prequalification does not mean that a lender is guaranteeing a loan.

The mortgage preapproval process is a deeper dive and requires documentation.

To gauge whether you qualify for a mortgage, lenders will scrutinize:

•   Income: Employees will need to provide pay stubs, W-2s, and tax returns from the past two years, as well as documentation of any additional income, such as work bonuses. Self-employed workers often need two years’ worth of records and a year-to-date profit and loss statement, although many lenders and loan programs are flexible.

•   Assets and liabilities: You’ll need to provide proof of savings, investment accounts, and any properties. Lenders view assets as proof that you can afford your down payment and closing costs and still have cash reserves.

Lenders also look at monthly debt obligations to calculate your debt-to-income ratio.

•   Credit score: Your credit score is a three-digit representation of your credit history.

Recommended: What Is Considered a Bad Credit Score?

Once your lender has reviewed the information, it may offer a preapproval letter. Importantly, receiving preapproval from a lender does not obligate you to use them.

Estimate Your Mortgage Payment

Before you seek prequalification or preapproval, you might want to get an idea of how much your monthly mortgage payment could be. Use the mortgage calculator below to quickly see the difference in mortgage payments based on down payment, interest rate, and a 15- or 30-year term.

What Should I Do If My Mortgage Preapproval Expires?

Lenders put an expiration date on preapproval letters because they need to have your most up-to-date financial information on hand. The credit, income, debt, and asset items they reviewed for your preapproval typically need to be updated after the letter expires, and your credit may be checked again.

You can minimize the effect of “hard pulls” on your credit score by avoiding seeking a renewal when you’re not actively shopping for a home.

If your finances have mostly stayed the same, your lender is likely to renew your preapproval.

Finalizing Your Mortgage

If you find a house while your mortgage preapproval is still valid, you can choose a lender and move on to finalizing your mortgage application. At this point, in many cases, the lender will check again to see if there have been any changes in your financial situation.

The mortgage underwriter will review all the information, order an appraisal of the chosen property and a title report, and consider your down payment. Then comes the verdict: approved, suspended (more documentation is needed), or denied.

Your mortgage is officially approved when you receive a final commitment letter. A closing date can be scheduled. It generally takes 48 days to close on a house, but it could happen in as little as 20 days.

Buyers may want to minimize changes, like applying for other loans or credit, when a home loan is in underwriting.

The Takeaway

How long is mortgage preapproval good for? Often 30 to 90 days. Getting prequalified is a good precursor to getting preapproved for a mortgage.

If you’re ready to start house hunting, check out the fixed-rate mortgages SoFi offers and the current deals.

Get prequalified for a SoFi Mortgage in minutes.

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SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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If the kitchen is the heart of the home, what does it say when yours is falling apart? Shabby fixtures, failing appliances, or a dysfunctional layout might have you daydreaming about a full gut reno — but how much does an average kitchen remodel cost? A minor kitchen update by DIY-savvy homeowners may come in at $4,000, while a major remodel can balloon to $50,000, or even $100,000+.

Before you begin your kitchen update, it helps to consider why you’re remodeling and whether it will add value to your home. We’ll help you scope out the average cost of a kitchen remodel — including cabinetry, countertops, appliances, and labor — and where you can save money without sacrificing function or design.

Kitchen Remodel Cost Overview

Homeowners remodel for different reasons: better functionality, entertaining, to update dated fixtures, or to prep for a home sale. It’s important to consider both what you want to get out of the remodel and what your return on investment (ROI) might be before diving into hiring contractors and purchasing appliances.

Do you plan to live in your place a few more years and enjoy your new kitchen? Or will you strategically upgrade for a home sale in the near future? The answer will influence where and how you spend money.

The truth is you probably won’t recoup the total cost of a kitchen remodel in a home sale.
According to Remodeling Magazine’s Cost vs. Value Report 2022, the national average ROI for a minor remodel with mid-range materials is 71%. A major remodel with upscale materials, on the other hand, yields just a 52.5% ROI.

Clearly, the best bang for your buck will be less costly but visually impactful minor updates: replacing cabinets fronts, countertops, faucets, and lights, plus painting and perhaps new flooring. But if you want to change the layout or add all-new appliances, you’re looking at five figures. (You may be interested in this story on the difference between a renovation vs. remodel.)

Average Kitchen Remodeling Costs by Feature

The average kitchen remodel cost can vary a lot depending on a few key items: cabinetry, countertops, and appliances. We’ll review your options and typical costs for low-, middle-, and high-end updates.

Kitchen Cabinetry Cost

Cabinetry typically eats up 25% of a kitchen budget. There are three types of kitchen cabinet construction, each priced per linear foot:

•   Stock cabinets, the least expensive, run $60-$200 per linear foot, or $1,250-$2,500.

•   Semi-custom are $100-$650 per linear foot, or $1,875-$10,000.

•   Custom will set you back $500-$1,200 per linear foot, or $7,500-$18,750.

Custom cabinets are made to order, based on your kitchen’s precise measurements, and made of solid wood. Stock are ready-made and mostly constructed of engineered wood, and semi-custom are a hybrid of stock and custom.

Countertop Cost

The cost of countertops is determined by the material. Typical materials include granite, marble, quartz, stainless steel, and butcher block wood. Granite, stainless steel, and butcher block are good budget options, ranging from $850 to $4,000 depending on the size of your kitchen. Marble and quartz command $2,000-$10,000.

Appliances Cost

The number of different appliances in the typical kitchen sets this home reno apart from, say, a bathroom remodel. Appliances generally account for 20% of your overall budget. Replacing all your appliances at once — fridge, stove, oven, dishwasher — can be quite pricey.

Discount shoppers might be able to find a full suite of lower end appliances for as little as $1,500. Midrange appliances can run about $5,500 all in, and higher end models can come to $17,000. Double wall ovens, a favorite of serious cooks, can cost $1,800-$6,500 on their own. And some homeowners may decide to annex a closet for a mini laundry room.

Installation and Labor Costs

Labor is another major cost that can be hard to predict. But count on spending 30%-35% of your budget on contractors and installers. Your price will depend on where you live, how large your space is, and the features being installed. Read more about these factors below.

Where You Live Matters

Bargain hunters should be aware that some factors influencing budget are not within their control — like where in the U.S. you live. Homeowners on the West coast and in the Northeast generally pay more for materials and labor than in the South. Prices also run higher in and around major cities.

Midrange vs Upscale Models

It may shock you to learn that upscale materials and appliances can cost you twice as much as midrange models. If a major midrange kitchen remodel comes to $50,000, a high-end remodel of the same kitchen might be $100,000.

Many homeowners pick and choose a combination of inexpensive, midrange, and higher end options.

Personal Budgeting for Your Remodel

HGTV recommends spending between 6% and 10% of the value of your home to get the best ROI. A major reno for a $400,000 home, then, would cost between $24,000 and $40,000. If your kitchen budget goes considerably higher, you risk making the rest of the house look mediocre by comparison. Aim too low, and your kitchen might not live up to the quality of similar homes in your neighborhood. Either way, your new kitchen may raise a red flag with home buyers.

It can be tempting to throw all your kitchen purchases on a credit card, but keep in mind that high-interest rates can inflate your renovation costs. These days, many homeowners are turning to a flexible personal loan to fund home renovations and remodels.

With this type of loan, you receive a lump sum payment to cover your kitchen remodel cost. You can pay back the loan over a term of your choosing in equal monthly installments. The interest rate is determined by your credit history and credit score, but is typically lower than credit card interest. Our Home Improvement Cost Calculator can give you an idea of how much you’ll need to borrow.

What Costs the Most?

What costs the most depends in part on the design decisions you make. Semi-custom cabinets will take up a larger part of your budget than stock will. Higher end brands, as we noted above, can double your appliance costs compared to mid-range. And with large kitchens or complex remodels, labor and installation can make up a third of your overall budget.

How To Save Money

In a full-scale kitchen remodel, new kitchen cabinets are typically the biggest expense, accounting for 20%-40% percent of the project budget. If your cabinets are in good shape and fulfill your storage needs, refacing them can slash your bill. Refacing can mean either stripping and repainting or staining existing doors, adding stick-on veneers, or replacing the doors while preserving the cabinet shelves. Add new hardware for a more modern look.

The next biggest line item in your kitchen remodel budget might be labor for installation. When you’re starting the home remodel process, find a contractor you can trust. That means doing your research, speaking with and getting quotes from multiple contractors, and reaching out to their previous clients for referrals. When entertaining bids, remember that an experienced, in-demand contractor will likely charge more than less capable competitors, but will almost certainly be worth it.

Finally, you may be able to trim some installation costs by doing simple things yourself: picking up items instead of paying for delivery, painting walls instead of paying contractors for the labor, or replacing your backsplash. Learn more DIY tricks in our guide on how to remodel a kitchen.

For more ideas, check out this roundup of ways to fight inflation’s effect on your kitchen remodel.

Cushion Your Budget

For any home remodeling project, financial experts and DIYers both recommend padding your budget by 20%. That means assuming you’ll spend 20% more than your projected total for materials and labor. Not only does that cover all the little things that can add up, it also accommodates pricier issues that may be uncovered, like necessary electrical or plumbing updates.

Stick to Your Budget

Experts recommend that homeowners fully commit to a plan and budget before undertaking a major remodel. Too many last-minute changes won’t endear you to your contractors and can inflate your costs as one small change can lead to other unforeseen adjustments.

House Exterior Style Quiz

The Takeaway

The average kitchen remodel cost can vary widely from $4,000 to $50,000 or more, or between 6% and 10% of your home’s value. Your cost will depend on a number of factors such as kitchen size and whether you choose bargain, midrange, or high end materials and appliances. The major kitchen remodel cost drivers are cabinets, countertops, appliances, and labor. The good news is that the ROI for a smart, mid-range remodel is 71%.

Home improvement loans from SoFi have low-interest rates available for those who qualify and offer fixed monthly payments. These 100% no-fee unsecured loans might be just the recipe to getting your perfect kitchen.

Find out more about using a SoFi personal loan to update your kitchen.

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SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Conventional loans — mortgages that are not insured by the federal government — are the most popular type of mortgage and offer affordability to homebuyers.

Private mortgage lenders originate and fund conventional loans, which are then often bought by Fannie Mae and Freddie Mac, publicly traded companies that are run under a congressional charter.

By buying and selling conventional conforming mortgages, Fannie and Freddie help to ensure a reliable flow of mortgage funding.

Requirements for Conventional Loans

It can be confusing to know how to qualify for a mortgage.

Just realize, for one thing, that a higher credit score is usually required for a conventional loan than an FHA loan, popular among first-time buyers.

Here are factors a lender will consider when sizing you up for a conventional loan.

Your Credit Score

You’ll usually need a FICO® credit score of at least 620 for a fixed-rate or adjustable-rate mortgage.

The FICO score range of 300 to 850 is carved into these categories:

•   Exceptional: 800 to 850

•   Very Good: 740 to 799

•   Good: 670 to 739

•   Fair: 580 to 669

•   Poor: 300 to 579

In general, the higher your credit score, the better the interest rates you’re offered.

Down Payment

Putting 20% down is desirable because it means you can avoid paying PMI, or private mortgage insurance, which covers the lender in case of loan default.

But many buyers don’t put 20% down. The median down payment on a home is 13%, according to a recent study by the National Association of Realtors®.

Conventional loans require as little as 3% down, and the down payment can be funded by a gift from a close relative; a spouse, fiancé or domestic partner; a buyer’s employer or church; or a nonprofit or public agency. The gift may require a gift letter for the mortgage.

Just keep in mind that the smaller the down payment, the higher your monthly payments are likely to be, and PMI may come along for the ride until you reach 20% equity.

Debt-to-Income Ratio

Your debt-to-income ratio (DTI) helps a lender understand your ongoing monthly debt obligations relative to your gross monthly income.

To calculate back-end DTI:

1.    Add up your monthly bills (but do not include groceries, utilities, cellphone bill, car insurance, and health insurance).

2.    Divide the total by your pretax monthly income.

3.    Multiply by 100 to convert the number to a percentage.

In general, lenders like to see a DTI ratio of 36% but will accept 43%.

The Fannie Mae HomeReady® loan, for lower-income borrowers, may allow a DTI ratio of up to 50%.

In any case, the lower your DTI ratio, the more likely you are to qualify for a mortgage and possibly better terms.

Loan-to-Value Ratio

The loan-to-value ratio (LTV) is the amount of the mortgage you are applying for compared with the home value. The higher the down payment, the lower the LTV ratio.

Fannie Mae typically sets LTV limits at 97% for a fixed-rate mortgage for a principal residence (think: 3% down) and 85% for a fixed or adjustable loan for a one-unit investment property.

When LTV exceeds 80% on a conforming loan, PMI will likely apply, although some borrowers employ a piggyback loan to avoid mortgage insurance.

Conventional Conforming Loan Limits

Many loans are both conventional and conforming — meaning they meet the guidelines of secondary mortgage market powerhouses Fannie Mae and Freddie Mac, which buy such mortgages and often package them into securities for investors.

Conventional conforming loans fall below limits set by the Federal Housing Finance Agency (FHFA) every year.
Staying under a conforming loan limit often equates to a lower-cost mortgage because the loan can be acquired by Fannie and Freddie.

The conforming loan limits for 2022 in many counties in the contiguous states, Washington, D.C., and Puerto Rico rose with market prices:

•   One unit: $647,200

•   Two units: $828,700

•   Three units: $1,001,650

•   Four units: $1,244,850

In high-cost areas like Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the 2022 conforming loan limits were:

•   One unit: $970,800

•   Two units: $1,243,050

•   Three units: $1,502,475

•   Four units: $1,867,275

Nonconforming Loans

Word games, anyone? Nonconforming loans are simply mortgages that do not meet Fannie and Freddie standards for purchase. They usually take the form of jumbo loans and government-backed loans.

A homebuyer or refinancer who needs a mortgage beyond the FHFA limits can seek a jumbo mortgage loan. A jumbo loan is still a conventional loan if it’s not backed by a government agency; it’s just considered a “nonconforming” loan.

FHA, VA, and USDA mortgages — those backed by the Federal Housing Administration, Department of Veterans Affairs, and the U.S. Department of Agriculture — are also nonconforming loans.

Nonconforming mortgage rates may be higher because the loans carry greater risk for lenders, but at times the rates might skew lower than conventional conforming rates.

The Takeaway

Conventional loan requirements are good to know when you’re looking at the most popular type of mortgage around. Then again, a jumbo loan may sound pretty good.

SoFi offers both, each with special features. Check out the advantages of SoFi mortgage loans. And then, within minutes…

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SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Millennials continue to make up the biggest share of homebuyers, at 43%, according to a 2022 National Association of Realtors® report.

And Gen Y is the most educated group of buyers, so if you’re a millennial, you’re smart; you already know a few things about home buying.

But if you’re part of the generation of people born between 1981 and 1996, you may still have questions. Here are eight tips to buy a house.

Smart Homebuying Tips for Millennials

1. Pay Down Debt First

The average millennial had about $28,300 in nonmortgage debt in 2021, according to Experian’s latest State of Credit Report. The average balance on retail credit cards was over $1,800.

Gen Y’s credit utilization rate — the percentage of available credit you’re using on your revolving credit accounts — was 30.2% on average. That’s the top end that’s generally advised, but lower is considered better.

As many millennials know, savvy credit card users maximize the rewards they earn or take advantage of interest-free offers. But carrying a revolving credit card balance can add up.

Clearing out at least some debts may be a great place to start on a millennial homeownership journey. You’ll likely need to take out a mortgage to purchase a new house, which will account for an even larger portion of personal debt.

There are several strategies to pay off debt, including the snowball and avalanche methods.

Those methods are part of six ways to become debt free.

Recommended: How Many Credit Cards Should I Have?

2. Start Saving for a Down Payment

After whittling down at least some debt, it’s time to think about how to afford a down payment.

Though a 20% down payment may allow you to avoid paying private mortgage insurance on a conventional (nongovernment) loan and get a better rate, borrowers often are able to put down as little as 3%.

The down payment on a house can be as low as 3.5% for an FHA loan if you have a FICO® score of at least 580 (but mortgage insurance always comes along for the ride with an FHA loan and will not drop off unless you’re putting at least 10% down).

USDA and VA loans usually do not require any down payment, but the eligibility for those loans is pretty narrow.

Many lenders give first-time homebuyers a break, and income-qualifying first-time buyers may be able to get down payment assistance from state or city programs.

Younger millennials use a gift or loan from friends and family to help fund the purchase more than any other generation, the National Association of Realtors has found. A gift will need to be documented in a gift letter for the mortgage.

Recommended: 31 Ways to Save for a House

3. Determine Your Must-Haves

Here’s one of the most fun parts about purchasing a home: plotting a dream space.

Before starting your home search, it’s helpful to take some time and think about what you really want. Do you want an open-concept home, or need a minimum number of bedrooms and bathrooms?

Are you considering a condo or townhouse? The maintenance will be minimized, but regular fees are usually part of the deal.

Or is your heart set on buying a single-family home? You’ll usually be responsible for maintaining everything from the roof to the yard (hope you don’t mind mowing, blowing, and edging or paying to have that done).

Maybe you’re open to a frumpy house because you know you can easily upgrade your home with a smart front door, outdoor lighting, paint, and more.

Or maybe new construction — everything shiny and new — is calling your name.

To narrow the search, think about everything on your must-have vs. like-to-have list.

Recommended: How Do Home Improvement Loans Work?

4. Find a Real Estate Agent

Though you don’t have to use a real estate agent to purchase a home, a buyer’s agent can be your guide from the first viewing to the closing.

Real estate agents have access to a multiple listing service (MLS), which allows them to sift through every home in your area at once. They may also have pocket listings, or whisper listings, few others know about.

A real estate agent is also well versed in what needs to take place before a buyer can take ownership of a home, including making an offer, scheduling a home inspection, and obtaining homeowners insurance.

They know how to handle counteroffers, contingencies, and putting an offer on a house that’s contingent.

They may also have a list of trusted inspectors, lawyers, contractors, and insurance agents a buyer may need along the way.

Recommended: Guide to Buying, Selling, and Updating Your Home

5. Set Up Real Estate Alerts

Millennials are digital natives, so this part is cake.

Once your list of must-haves is complete and you’ve picked a real estate agent to assist you, it could be a good idea to set up alerts across listing sites such as the MLS, Zillow, and Redfin. You’ll be notified whenever a home in your chosen area, price range, and desires comes onto the market.

These websites also typically allow users to save favorites and gather intel on a specific home, such as its tax and sales history. They also allow users to book viewing appointments.

6. Think About Long-Term Value

While viewing homes, it may be easy to fall in love with fresh subway tiles, staged furniture, and the simple shine of a brand-new spot. However, it helps to take a beat and a breath and think about the long-term value of the home.

Are you buying this home as a spot to raise a family? Then make sure the schools are a good fit and it’s a walkable neighborhood. Looking at purchasing a home to rent out short term? Check local laws to ensure you’re zoned properly.

Are you buying a house from a family member? A gift of equity is a lovely thing for a buyer indeed.

Recommended: Local Housing Market Trends by City

7. Consider a ‘Love Letter’ and Incentives

Once you’ve found a home in your price range that comes with all your must-haves, it’s time to put in an offer. There is something you can add to your offer to stand out from the crowd: a personal real estate offer letter, or so-called love letter.

If you choose this route, write a letter to the current homeowner expressing how much you love the space and why you feel you’d make the next great owner. You may also want to point out all the things you love about the home design.

To make your offer stand out, you could also provide a quick closing date, suggest paying for things like a termite inspection, and offer a leaseback to the owners until they are ready to move out.

8. Shop for a Mortgage

With any luck, you’ve gotten prequalified or preapproved and know how much of a mortgage you can afford.
Now it’s time to look for a home loan.

When shopping for a mortgage, realize that advertised rates may differ from what you’re offered. Multiple factors determine your rate.

You can apply for a mortgage online with any number of direct lenders and mortgage brokers. Just try to do so within 14 days to protect your credit score.

Then you can compare all the details of the mortgage offers in the loan estimates you’ll receive after applying with each.

The Takeaway

As multitudes of millennials suit up to take the homebuying plunge, they will benefit by getting their finances in order, hiring an agent, setting up real estate alerts, and shopping for a mortgage.

SoFi is there for Gen Y with competitive rates, a variety of terms, and low down payments.

Look into the advantages of SoFi mortgage loans and get a quick rate quote.

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SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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For those looking to trade big-city life for backyards and gardens, more square footage, home office space, and parks, the suburbs may be the perfect spot to call home.

Let’s not forget great public schools, a hallmark of a high-ranking suburb.

Top 50 Suburbs in the US

Although the country teems with ’burbs, here’s a look at the 50 best suburbs according to Niche, using government data and community reviews.

If safety is a big priority, also take a look at the 50 safest cities in America.

1. Chesterbrook, Pennsylvania

Chesterbrook was crowned first among U.S. suburbs. With highly rated public schools and an intimate feel (under 6,000 residents), this Philadelphia suburb is leafy and cozy. Chesterbrook is among eight Keystone State suburbs on this list.

2. Penn Wynne, Pennsylvania

Real estate can get pricey in Penn Wynne (also known as Wynnewood), a small Philly suburb where about half of the population of 6,650 has at least a master’s degree and where locals are passionate about the arts. Bars, coffee shops, and parks lend an urban-suburban feel.

3. Ardmore, Pennsylvania

Those looking to put down roots in a suburban neighborhood that also has an urban feel will like Ardmore, yet another Philadelphia ’burb, with about 13,800 residents. It has plenty of restaurants, bars, coffee shops, and parks to choose from and excellent schools.

4. Los Alamos, New Mexico

This historic suburb of 13,400 denizens is the birthplace of the atomic bomb, but it also happens to be known as a great place to live with a top-notch public school system and nature all around.

5. Carmel, Indiana

Carmel, north of Indianapolis, features neighborhoods rich in architectural diversity and low in crime. This spot is home to more than 103,000 people.

6. Great Neck Plaza, New York

With eateries, parks, and superlative public schools, this village on the North Shore of Long Island is walkable, dog friendly, and commutable to Manhattan by train. The burg of 7,640 has a strong contingent of retirees and home prices below the national average. If this New York suburb isn’t the right fit, maybe one of the other nine will be.

7. Okemos, Michigan

The east side of East Lansing is beloved because of its low crime rates, lower-than-average cost of living, and the amenities at Michigan State University. With a population of about 25,870, Okemos has stellar public schools, a college town vibe, and a small base of tech employment.

8. Richmond Heights, Missouri

This St. Louis suburb, home to about 9,400 people, offers amenities for both families and young professionals. With highly rated public schools, Richmond Heights also has a vibrant nightlife scene and good housing options.

9. Holly Hills, Colorado

For a small-town feel and great public schools, hop on over to Holly Hills. This Denver suburb is home to about 2,700, so you’re likely to know a lot of your neighbors.

10. Brookline, Massachusetts

This Boston suburb’s public schools constantly receive high marks and welcome families from around the globe. With about 64,000 residents, Brookline is attractive but not cheap: Its median home sale price is more than double the national median.

11. Great Neck Gardens, New York

With fewer than 1,300 residents, this New York City suburb has the usual perks of a coveted hamlet, and a relatively gigantic housing cost.

12. Clarendon Hills, Illinois

This community southwest of Chicago (pop. 8,760) offers top-notch public education for children, a safe environment, and a vibrant downtown. The median home sale price is a bit above the national median.

13. Swarthmore, Pennsylvania

Swarthmore has small-town charm but is only a 20-minute train ride to Philadelphia’s museums, theaters, and restaurants. The suburb of about 6,600 offers more than two dozen forested trails for those looking to connect with nature.

14. Clayton, Missouri

Those looking to give their career a boost may find opportunity in Clayton. This St. Louis suburb of 17,600 employs over 7,300 people. Clayton is also considered green and safe. The median home price tends to be above the U.S. median price.

15. Brentwood, Missouri

This affordable St. Louis suburb is home to nearly 8,300, many of whom are young professionals. Highly rated schools, a high homeownership rate, and a variety of parks and dining establishments make Brentwood one of the best suburbs in the Show-Me State and the country.

16. Brighton, New York

Brighton is overflowing with historic charm. This Rochester suburb of 37,200 was established in 1814 and features well-preserved 19th-century brick homes.

17. Manhasset Hills, New York

About 3,660 people call this New York City suburb home. Manhasset Hills has a rural feel and an average home sale price topping $1 million.

18. Mount Lebanon Township, Pennsylvania

Architecture lovers will fall head over heels for this neighborhood (lovingly known by locals as Lebo). This Pittsburgh suburb of about 33,600 people blends sophistication and small-town charm. Take your pick from American Craftsman, stone Colonials, Prairie, and English Tudor style homes.

19. Oakwood, Ohio

With about 9,500 residents, this Dayton suburb has a sparse suburban feel and an abundance of parks, bars, restaurants, and coffee shops. Most residents own their homes, and the public schools are, well, you know, above par.

20. North Potomac, Maryland

North Potomac, only about 20 miles from Washington, D.C., earned a spot on this list, thanks to awesome public schools and family amenities, not to mention a walkable and diverse environment. It’s home to about 23,700 people.

21. Narberth, Pennsylvania

You won’t get lost in the crowd in this friendly Philadelphia suburb of 4,500, which has an urban-suburban feel with historic homes, shops, restaurants, a train station, and the requisite good public schools.

22. Syosset, New York

Yet another New York City suburb makes the list. Syosset, with over 19,000 residents, has a rural vibe and all the bells and whistles of an attractive suburb. It also has a housing cost of more than twice the national median.

23. Wayland, Massachusetts

This Boston ’burb hosts 13,800 people, including a good number of retirees. People consider it safe, pretty, pricey, and calm.

24. Jericho, New York

Families will appreciate Jericho’s highly rated public schools, parks, and other amenities. The affluent Long Island hamlet of 15,000 is within reach of Manhattan.

25. Greenville, New York

Greenville, often called Edgemont, is a bedroom community of 4,700 residents north of Manhattan. It’s a magnet for parents who want good public schools.

26. Morrisville, North Carolina

Those who are moving to the Raleigh area may find Morrisville appealing, thanks to proximity to amenities and career opportunities like Raleigh-Durham International Airport, Research Triangle Park, and the Lenovo headquarters. The average home price in this community of 31,840 is around the national average.

27. Williamsville, New York

This little Buffalo village has great schools, several parks, historic landmarks, and a relatively low cost of living.

28. Long Grove, Illinois

Another Chicago suburb makes the list. Long Grove, pop. 8,400, is considered a great place to raise a family, thanks to highly rated public schools and low crime rates.

29. Mountain Lakes, New Jersey

This tiny suburb 31 miles from Manhattan is considered safe, charming, and green. It’s a wealthy pocket with a strong sense of community.

30. Chesterfield, Missouri

This sizable St. Louis suburb of 50,500 is partly situated on the floodplains of the Missouri River. There is no shortage of attractions here, including historical houses, conservation areas, and dining options.

31. East Williston, New York

Here’s another Manhattan bedroom community, this time 20 or so miles from the big city. The tiny Long Island suburb has great schools and a hometown feel. Household income and education level skew high, as they do in most of the ’burbs on this list.

32. Cascades, Virginia

Cascades is the first Old Dominion ’burb on the list of the top 50 suburbs in the U.S. The neighborhood of about 12,500 is within driving distance to Washington, D.C., and has good public schools, parks, playgrounds, and great housing options.

33. Kensington, New York

This tiny Manhattan suburb attracts families and retirees for all the reasons a ’burb bursts into the top 50. This is a highly educated, high-income enclave.

34. Ridgewood, New Jersey

This New York City suburb offers residents a sparse suburban feel, and most residents own their homes. The focus in this family-friendly village of over 26,000 is education. Home prices skew high.

35. Cary, North Carolina

Cary, with over 182,000 residents, affords fun, from outdoor concerts and movies to the annual Beer, Bourbon & BBQ Festival. Stop by the quaint downtown of this Raleigh suburb during the holiday season for a charming experience.

36. Aspinwall, Pennsylvania

This little borough on the Allegheny River is near downtown Pittsburgh. It’s historic and picturesque, with high education levels and average home prices below the national average.

37. South Kensington, Maryland

This little ’burb is near Washington, D.C., and has not-tiny home prices. With fewer than 9,000 residents, South Kensington has great public schools, a family-friendly vibe, and a nightlife scene. It looks like Mom and Dad need to book a babysitter.

38. North Bethesda, Maryland

Here’s another pocket of tranquility in the Old Line State. There are so many benefits of living in North Bethesda that it’s hard to keep track. Situated close to Washington, D.C., this suburb has its own dining, shopping, and entertainment scene.

39. Santa Monica, California

Santa Monica residents are lucky enough to live a stone’s throw from the Pacific Ocean, and many live within walking distance of the famed Third Street Promenade and its many restaurants, shops, and other amenities. Bring your wallet, of course, if you plan to live here.

40. Cave Springs, Arkansas

Move over, Hot Springs. Cave Springs made the list. Named for two caves and the water source that flows from one of them, this suburb of about 6,250 people has a small-town feel, home prices in line with the national average, and A-rated public schools.

Recommended: Home Affordability Calculator: How Much House Can You Afford?

41. Innsbrook, Virginia

Innsbrook is a thoughtfully planned community that is an ideal place to live, work, and play. Fortune 500 companies, startups, and small businesses are attracted to this Richmond bedroom community of 9,250 people.

42. Cinco Ranch, Texas

Cinco Ranch’s public schools, housing options, and job market put it on the map. A lot of house for the money combined with great outdoor and nightlife activities make this suburban swath of over 16,000 outside Houston a hot spot.

43. Fishers, Indiana

This Indianapolis suburb has an average of 187 clear days every year and an average high of 85 degrees in the summer. Many families and young professionals live in Fishers, pop. 37,835, where the average home price is below the national average.

44. Ottawa Hills, Ohio

The second Ohio suburb to make the list of the most popular suburbs in the U.S. is Ottawa Hills. This village outside Toledo is safe, well educated, affordable, and good for families.

45. Short Pump, Virginia

Short Pump, named for a short-handled water pump for horses at an 1800s tavern there, has a population of 27,500 and is home to lots of families and young professionals who own their own homes. This dense suburban neighborhood outside Richmond has good schools, great housing options, and nightlife to pursue.

46. Frontenac, Missouri

This tiny, affluent St. Louis neighborhood has a rural feel and all the things that make a suburb stand out.

47. White Rock, New Mexico

This community of 5,880 in Los Alamos County has a rural vibe, great schools, hiking trails, lots of parks, and home prices in line with the national average.

48. Stone Ridge, Virginia

Good public schools, housing options, and diversity all helped Stone Ridge land the 48th spot on this list of top U.S. suburbs. The Washington, D.C., bedroom community has about 16,600 residents.

49. The Woodlands, Texas

This sounds like a good kind of sprawl, y’all. The Woodlands, a 29,000-acre master-planned home to 118,500 people and over 2,000 businesses, has a natural forest and 140 parks and is linked by more than 220 miles of hiking and biking trails. With top schools, home prices just a bit above the national average, and nightlife, this Houston suburb scores.

50. Berwyn, Pennsylvania

This pricey Philadelphia suburb of just 3,800 residents offers an urban-suburban feel. Most residents own their own homes, and there are charming coffee shops, restaurants, and parks to visit.

Financing a Fresh Start

You might have a fave or two among the best suburbs in the U.S. Is it time to fund the dream for your family and start anew in a place you hadn’t considered?

When you’re ready to look for a mortgage, know that SoFi offers home loans with low rates, low down payments, flexible term options, and a closing time guarantee.

Applying for a home mortgage loan doesn’t have to be complicated. Start by getting a quick, no-obligation rate quote.

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