Life Stages Archives

Apr

2025

How to Combine Bank Accounts

By Janet Siroto | Budgeting & Goals, Family Finances, Financial Independence | No Comments

There are times in life when you might wonder if you should merge bank accounts. One obvious trigger is marriage: You and your spouse may decide to combine all or some of your accounts into joint reserves. Or perhaps you have a number of bank accounts, and they are becoming unwieldy. Maybe you opened one in college, then another when you moved to start your first job, and then yet another to get a special promotional bonus.

Whatever you’re craving financial simplicity or otherwise need a fresh approach to your accounts, read on for learn how to combine bank accounts, plus a look at the pros and cons of merging multiple accounts into one.

Key Points

Choose which account to keep or open a new account by comparing interest rates, fees, and benefits.
Shift transactions and recurring payments from the old accounts to the selected/new account.
Verify all automated debits/payments have transferred before withdrawing funds and closing old accounts.
Combining accounts can enhance financial transparency between couples and simplify money management for singles.
Potential drawbacks for couples include loss of financial independence and complications in divorce.

How to Combine Bank Accounts in 4 Steps

If you decide that merging bank accounts is the right step for you, here’s how to make it happen:

1. Decide Where to Keep Your New Account

Whether you are downsizing for yourself or joining two individuals’ finances together, a good first step is to decide where you want to open your new account. You might start by comparing offerings at traditional vs. online banks, looking at specifics like interest rates, fees, and minimum balance requirements.

If you or your spouse have multiple accounts across different financial institutions, you could evaluate which institution is offering the best benefits and lowest fees. You might stick with the one existing account you like best or potentially open a joint account somewhere new.

2. Start Shifting Accounts

Here’s the next step in how to combine bank accounts: If you’ve decided you want to combine accounts, you could start moving your direct deposits, automatic credit card payments, and other similar transactions over from your old accounts to the new one. You might also want to make sure any subscriptions or other deductions are switched over as well.

Recommended: How to Switch Banks

3. Check That Your Account Is Up and Running

After about a month, you might want to double-check and make sure that everything has transferred properly. You don’t want to end up paying a late fee or have a check bounce because you weren’t monitoring your accounts.

Once you see that all your scheduled payments, deposits, and withdrawals are happening in your new account, it’s time to transfer any remaining money in the old account/accounts to your new account. It’s generally easiest to do this via online bank-to-bank transfer.

4. Close the Unnecessary Accounts

The final step in combining bank accounts is to close the old account or accounts. This might involve a trip to a branch in person. Or, you may be able to close an account simply by calling your institution or logging into your online banking portal. If there is anything left in your old account, the bank will typically issue you a check for the remainder.

Benefits of Combining Bank Accounts

If you’re wondering whether to merge bank accounts, it can be helpful to consider the pros and cons of combining accounts. Here, the upsides:

A shared account gives each person in the relationship access to money when they need it. Joint accounts usually offer each person a debit card, a checkbook, and the ability to make deposits and withdraw money. This also includes online access to account information, which might help when it comes to paying bills together or when making shared financial decisions.
Another advantage to a joint bank account is that you are less likely to run into financial surprises with your partner. With money going into (and out of) one account that you both have access to, it might be easier to keep tabs on your monthly budget and spending.
Even those who are not looking to combine finances with someone else could benefit from merging their own money into fewer accounts. How many bank accounts should you have? For most single adults, just one checking and one savings account at the same bank should cover your financial needs. This could help cut down on confusion and simplify your spending, so that you’re not trying to balance your budget across multiple accounts. Minimizing the number of accounts you hold could mean fewer fees, since many banks charge monthly fees or require a minimum balance.

Drawbacks of Merging Your Accounts

Now, consider the downsides of merging accounts:

Some couples may prefer to keep their financial independence. In fact, rather than combining all your finances, you might decide to create a new joint account but also keep some accounts separate. Or you might decide to keep your finances totally independent of each other, and instead come up with a budget to figure out which expenses each person will pay.
Combined accounts may not suit your big picture financial needs and money goals. Before you decide that a combined bank account is your goal, you might want to have a conversation about what each partner brings to the table. For instance, what if one partner is entering the marriage with student loan debt, past loans, or other financial burdens? Will the new shared account be used for those payments? Or is it up to the individual to pay off their own debts?
A joint account could also become a problem in some states if the relationship ends, because without any other agreement in place, that shared money might get split up evenly in a divorce. Or, even worse, one spouse might clear out the account, leaving the other without money.

If you’re concerned about only having a joint account, you could open a joint account specifically for shared bill management with each person depositing a specific amount every month.

You could even have three separate checking accounts — yours, mine, and ours — maybe if one person is a spender and one is a saver. That way, both people manage their checking accounts on their own.

The Takeaway

To combine bank accounts, start by deciding on which account you want to keep or where you want to open a new bank account. Next, you’ll need to transfer direct deposits and recurring payments to the chosen/new account. Once everything has been successfully moved over, you can transfer any remaining funds from your old account(s) to your chosen/new account and close the account(s) you no longer need.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

Can you merge two bank accounts together?

Yes, you can combine bank accounts. You can do this either by transferring the funds from one account into the other one, or by opening a new account and transferring the funds from both old accounts into the new one. Once you’ve updated any direct deposits or automated transfers, you can close the old account(s).

When should you combine bank accounts?

You may want to combine bank accounts when you get married, if that suits your and your spouse’s financial needs and style. You might also merge accounts if you find you have multiple accounts and want a more simplified financial life.

How do you link two bank accounts from different banks?

You can link accounts at two different banks without merging them. Typically, you can do this on your financial institution’s website or app. You’ll look for the option that says “link external accounts,” and you’ll need the bank routing and account numbers of the external bank account handy.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

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Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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SOBNK-Q225-032

Apr

2025

How to Find the Right Investment Advisor

How to Find the Best Investment Advisor for You

By Kate Ashford | Growing Wealth, invest, Investing | Comments Off

Investment advisors help investors figure out their goals, create financial plans, and put those plans into action. There are a lot of them out there, too, meaning that finding the right professional for you or your family may seem daunting. But finding the best investment advisor for you can be a fairly painless process.

You’ll need to start with some basics, though, by learning the difference between an investment advisor and a registered investment advisor, what to look for when you hire an advisor, and more.

Key Points

• Investment advisors assist in setting goals, creating financial plans, and executing them.

• Research and due diligence are essential in selecting an advisor.

• Credentials and ongoing education are important factors when researching options.

• Fee structures vary; it’s essential to understand how advisors are compensated.

• Chemistry and communication style are crucial for a good fit.

What Is an Investment Advisor?

An investment advisor is an individual or company that offers advice on investments for a fee. The term itself, “investment advisor,” is a legal term that appears in the Investment Advisers Act of 1940. It may be spelled either “advisor” or “adviser.”

Investment advisors might also be known as asset managers, investment counselors, investment managers, portfolio managers, or wealth managers. Investment advisor representatives are people who work for and offer advice on behalf of registered investment advisors (RIAs).

What Is a Registered Investment Advisor (RIA)?

A registered investment advisor, or RIA, is a financial firm that advises clients about investing in securities, and is registered with the Securities and Exchange Commission (SEC), or other financial regulator. While you may think of RIAs as people, an RIA is actually a company, and an investment advisor representative (IAR) is a financial professional who works for the RIA.

That said, an RIA might be a large financial planning firm, or it could be a single financial professional operating their own RIA.

An RIA has a fiduciary duty to its clients, which means they must put their clients’ interests above their own. The SEC describes this as “undivided loyalty.” This is different from non-RIA companies whose advisors are often held only to a suitability standard, meaning their recommendations must be suitable for a client’s situation. Under a suitability standard, an advisor might sell a client products that are suitable for their portfolio but which also result in a higher sales commission for the advisor.

RIAs generally offer a range of investment advice, from your portfolio mix to your retirement and estate planning.

What’s Required to Become a Registered Investment Advisor?

The following steps are required to become a registered investment advisor (RIA).

• Pass the Series 65 exam, or the Uniform Investment Adviser Law Exam, which is administered by the Financial Industry Regulatory Authority (FINRA). Some states waive the requirement for this exam if applicants already hold an advanced certification like the CFP® (CERTIFIED FINANCIAL PLANNER™) or CFA (Chartered Financial Analyst).

• Register with the state or SEC. If an RIA has $100 million in assets under management (AUM), they must register with the SEC, though there are sometimes exceptions to this requirement. If they hold less in AUM, they must register with the state of their principal place of business. This requires filing Form ADV.

• Set up the business. These steps require making a variety of decisions about company legal structure, compliance, logistics and operations, insurance, and policies and procedures.

How to Choose an Investment Advisor

Finding the right investment advisor is about finding the right fit for you. While personal preference plays a part, there are a variety of other things you might consider when you’re searching:

Start Local

Look to helpful databases of financial professionals that can help you pinpoint some advisors in your area. Here are a few to consider:

• Financial Planning Association. Advisors in this network are CERTIFIED FINANCIAL PLANNERS™ (CFP®s) and you can search by location, area of specialty, how they’re paid and any asset minimums that may exist.

• National Association of Personal Financial Advisors. All advisors in this database are fee-only financial planners, meaning they receive no commissions for selling products.

• Garrett Planning Network. All advisors in this network charge hourly.

Get Referrals

One of the best ways to find a financial professional is to ask friends, family, and acquaintances if they’ve worked with someone they can recommend. While there are ways to build wealth at any age, it may be beneficial to ask people who are in a similar financial situation or stage of life. For instance, if you’re relatively young with a lot of debt and very little savings, you may not want the same investment advisor who’s working with wealthy retirees.

Ask About Credentials

Ask investment advisors what certifications they have, what was required to get the certification, and whether any ongoing education is necessary to keep it. Some certifications require thousands of hours of professional experience or passing a rigorous exam, while others may only require a few hours of classroom time.

Other certifications are geared toward investors at a specific life stage or with specific questions. The Retirement Income Certified Professional (RIPC) certification, for instance, focuses on retirement financial planning. Those with a Certified Public Accountant (CPA) certification are probably good sources for tax planning.

Check Complaint History

Depending on who oversees the advisor or the firm, you should be able to check whether there are complaints on record. If FINRA provides oversight, you can research them on FINRA’s BrokerCheck tool. If the SEC oversees them, the SEC has an investment advisor search feature to find information on the advisor and the company. Remember: One complaint might not be a red flag, but multiple complaints might give you pause.

Find Out About Fees

Investment advisors may be paid, or charge fees, several different ways. They may charge a percentage of assets under management, meaning that the fee will depend on the assets they’re managing for you. For example, if the fee is 1% of assets under management and you’re having them manage $500,000, you’d pay $5,000 annually for their services.

Others may charge an hourly fee or a flat project fee for specific services. There are also advisors that are paid commissions from the products that they sell to clients. It’s important to understand how an investment advisor makes money and how much you’ll pay in fees each year, and then decide what you’re comfortable with.

Get Details on Their Work Style

Communication and working style may be just as important as credentials and expertise. For instance, how often do they want to meet with you? Would you be working with them directly or with a wider team of people? Do they like to communicate via phone call, email, or text? This is something else to consider.

Take a Test Drive

Many advisors will offer a phone consultation or in-person visit to see if you’re a good fit. You may want to take them up on it. Finding the right investment advisor is as much a matter of chemistry as credentials.

Questions to Ask an Investment Advisor Before Hiring Them

It can be a good idea to find out as much as possible about an investment advisor so you can make an informed decision. Here’s a list of questions you might want to ask:

• What are your qualifications?

• What type of clients do you typically work with?

• Are you a fiduciary?

• How are you paid? And how much will I be charged?

• Do you have any minimum asset requirements?

• Will you work with me, or will members of your team work with me?

• How (and how often) do you prefer to communicate? (Phone, email, text?)

• How often will we meet?

• What’s your investment philosophy?

• What services do you provide for your clients?

• How do you quantify success?

• Why would your clients say they like working with you?

The Takeaway

An investment advisor can help you think about investing for the future, plan to save enough for all your goals, and understand how to get it all done. Finding one isn’t hard, but it does take time and some research to connect with an investment advisor that meets your expectations and feels like a good match.

With that in mind, getting the right advice can be critical even before you start investing. Someone with experience in the markets helping guide you can be invaluable.

Invest in what matters most to you with SoFi Active Invest. In a self-directed account provided by SoFi Securities, you can trade stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, options, and more — all while paying $0 commission on every trade. Other fees may apply. Whether you want to trade after-hours or manage your portfolio using real-time stock insights and analyst ratings, you can invest your way in SoFi's easy-to-use mobile app.

Opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.¹

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

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.

¹Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Probability percentage is subject to decrease. See full terms and conditions.

SOIN-Q225-006

Apr

2025

Coattail Investing Basics

By Brian Nibley | Growing Wealth, invest, Investing | Comments Off

Coattail investing, also known as copycat investing, is an investment strategy where investors try to replicate the results of others who already have a proven track record of success. In effect, investors look at what other successful investors are doing and try to follow suit.

For newer investors, this method has some obvious advantages, and can help ease the learning curve a bit. But, of course, there are both benefits and drawbacks, and it’s helpful to know who you’re able or should perhaps try to replicate, as well as the risks involved, rather than choosing some coattails to ride at random.

Key Points

• Coattail investing involves mirroring the strategies of successful investors.

• Activist investors, money managers, and large corporations are common targets.

• Information for coattail investing can be sourced from SEC filings and financial news.

• Risks include losing money as a result of following less experienced investors or those with different objectives or risk profiles.

• Personal due diligence and a long-term perspective are essential.

How to Be a Coattail Investor

For the most part, coattail investing incorporates a buy-and-hold strategy, where an investor buys stocks and holds them for the long term, such as a period of several years or several decades. Publicly available information from the financial press and the Securities Exchange Commission (SEC) website can give copycat investors information on how investors (those managing more than $100 million) have invested their money.

Coattail investing begins with choosing what person or group to watch. Then, based on their investment choices, a copycat investor can choose to replicate those investing strategies either in whole or in part.

In most cases, the average investor probably doesn’t have enough capital to keep up with big money managers and institutions in an exact 1:1 ratio. But watching what they buy and sell (and when), and acting accordingly to some degree, is the heart of coattail investing.

While investors used to have to manually follow their favorite investors by searching the SEC website or elsewhere, today, certain online services exist that help to automate the process.

Some brokerages may even offer “mirror investing” services that allow investors to set their own portfolios to make the same exact trades that their favorite investors make, with customized asset allocations.

Who Do Coattail Investors Follow?

When attempting coattail investing, following those who adopt a “buy and hold” strategy could prove beneficial. Because markets move fast, by the time a trade is executed, the most profitable opportunity may have already passed. Buying and holding takes a long-term time horizon or perspective, meaning it could take some of the timing and guesswork out of the equation, making it easier to realize profits.

A copycat investor could choose to copy just about anyone. That said, there are a few choices most commonly used by those who are successful at copycat investing. These include financial professionals and other investors who can influence markets simply by announcing their positions.

Activist Investors

Activist investors are known for causing stocks to rise when they reveal their own investments. These influencers may be ahead of the curve on investment trends, and financial news media reports on the actions of these investors regularly. Activist investors also often publicize their own moves through blog posts or press releases as well. This tends to make it easy for coattail investors to keep up and act accordingly.

Money Managers

People and institutions that manage over $100 million are required to report their holdings to the SEC. The SEC then publishes this information, making it public. Rather than hire a money manager, some copycat investors simply search for investments that large money managers have made and then choose those they think would be best for their own portfolios.

Large Corporations and CEOs

Successful companies that have accumulated cash reserves are challenged with figuring out where to put that money — and coattail investors sometimes follow suit.

For many years, holding cash and bonds was probably the least risky option for investors. But bonds and cash have their risks, too, such as interest rate fluctuations and inflation. This has led some companies to look elsewhere for returns, often in the form of alternative investments.

Unlikely Visionaries

Following more nontraditional investors — people outside the financial world who have made successful investments — could entail more risk than following activist investors or proven money managers, but there can still be insight to be gained.

That may include professional athletes or social media influencers. There are numerous examples of both who have made what turned out to be successful investments of various types. Of course, even if you start to mirror an athlete’s or influencer’s portfolio activity, there’s no guarantee that they’ll continue to make wise choices.

While watching athletes or celebrities for investment advice might not be something anyone would recommend, it can bring a unique perspective from outside the echo chamber and herd mentality of those within the financial world. People who come from outside that world tend to have a different outlook and could see something that others miss.

That said, an investor who looks to popular culture icons for investment advice does run the risk of racking up significant losses. It might not be realistic to establish an entire portfolio around this idea. It’s widely believed that in coattail investing, investors should follow only the most esteemed professional money managers.

What Are the Risks of Coattail Investing?

The main risk of copycat investing is that one might end up following an investor who loses, rather than gains. Or an investor may follow someone who has a different risk profile than they do. There could also be psychological risks, such as thinking that because one is copying a successful investor’s moves, all personal responsibility has been taken out of the equation.

In reality, investing always comes with risk, and always requires investors to conduct their own due diligence. Unless a copycat investor is using an automated program that buys and sells as soon as a big investor announces their trade, like a robo-advisor of one type or another, they will still have to stay on top of their own investments, even if the decisions of what/when to buy/sell are all recommended by someone else.

The Takeaway

Coattail or copycat investing is a strategy that involves mirroring another investor’s market moves. Copycat investing could be pursued in almost any fashion imaginable. It’s possible to follow anyone for investment insights, using their trades as a game plan.

Investors with an interest in pursuing coattail investing, however, would do well to consider sticking to tracking these types of people and their portfolios. While it can be useful to watch and try to learn from others with more experience, matching their actions exactly could bring a false sense of security to some investors, reducing their sense of the personal responsibility involved in researching investments and deciding when to buy or sell.

Opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.¹

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SOIN-Q225-030

Apr

2025

31 Real Estate Listing Terms Decoded: What Does “Cozy” Really Mean?

By Jamie Cattanach | Family Finances, Home Ownership, mortgage | Comments Off

If you’re house-hunting, you are probably spending a lot of time scrolling through online listings. And you may well wonder what certain terms mean, such as “turn-key” and “as-is.”

To help you be more efficient and less confused by the real estate jargon you will find, read this list of definitions. This intel will help you understand the message a listing is trying to send you and streamline your search.

Key Points

• Real estate listings often use specific terms that can be confusing, such as “as-is” indicating a property needing repairs.

• Terms like “cozy” or “charming” often imply smaller spaces or older homes needing updates.

• “Move-in ready” suggests the home requires no major repairs for immediate occupancy.

• Descriptors like “good bones” or “great potential” hint at properties that are structurally sound but may need cosmetic updates.

• “Fixer” or “handyman special” are terms indicating a property will require significant renovations.

Real Estate Listing Terms Decoded

Real estate has a language all its own. To figure out which homes may be worth looking at and which might not, you can use this handy real estate translator next time you peruse the listings. Consider this lingo, in alphabetical order:

1. As-is

If you see the words “as-is” in a real estate listing, proceed with some caution: This typically indicates that there are repairs or renovations that need to be done that the current owner is not going to address and is passing off to the buyer. The real estate contract will likely specify this if you do move forward with buying the home.

2. Built-ins

Built-ins are features like bookshelves, benches, or cabinets that are permanently built into the home itself, and are fairly common in older construction. Built-ins can be charming and convenient, but they can also limit the flexibility you have in arranging and decorating the space as you see fit.

3. Cozy

While this descriptor may bring to mind a comfy armchair and a steaming mug of cocoa, in real estate, “cozy” tends to mean “small.” The home may have minimal square footage, meaning each room may have very limited space.

💡 Quick Tip: Traditionally, mortgage lenders like to see a 20% down payment. But some lenders, such as SoFi, allow home mortgage loans with as little as 3% down for qualifying first-time homebuyers.

4. Charming

“Charming” is often another code word for a house with a small footprint. It may also indicate an older construction — which may, indeed, be charming, but might also end up needing costly repairs and renovations.

5. Cottage

This is yet another word that sounds like it’s invoking a feeling when it may really be describing a size — and that size may be on the smaller side. Cottages tend to be one- to two-bedroom houses and, again, might also be dated.

6. Custom

While “custom” sounds cool, it may or may not be. This term indicates that the property includes some built-to-order features or additions that appealed to the previous owners. These features, however, may or may not be to your taste. Perhaps there’s a wall of windows you’ll love or a tub in the primary bedroom that you’d rather have relocated.

7. Fixer

A listing agent may use this term as a shortening of “fixer-upper.” In other words, major renovations are likely going to be needed.

Recommended: The Cost of Buying a Fixer-Upper

8. Good bones

A home with “good bones” is typically one that needs some renovation and repair, but that has solid original construction and a desirable layout. In other words, the skeleton of a great home is there, but you may need to pay for home repairs and do other work to make it livable.

9. Great potential

In a similar vein to “good bones” or “hidden gem,” a home with “great potential” is typically one that provides an opportunity for the right buyer — but which likely needs some work to get there.

10. Handyman special

This is another term that can indicate that a property needs a lot of work — thus making it a good opportunity for a handy homeowner. The house may be priced lower than other, more fixed-up homes in the area.

Recommended: Home Equity vs. HELOC Loans

11. Hidden gem

These words might suggest a nice home in an out-of-the-way location or a home in a popular and trendy locale that needs some work. Either way, it can indicate that the property offers a great opportunity for the right buyer, though you may have to put in some work or make some sacrifices.

12. Investor special

That sounds like a good thing, right? But a real estate agent might use this phrase to mean that a house is in pretty rough shape. It will likely take significant work to make the place livable, meaning you may only be able to buy it for cash or with a rehab loan, such as an FHA 203(k) home loan.

13. Lives large

This indicates that the home may appear small in terms of square footage, but, when you are actually in the property and walking around, it feels a lot more spacious.

14. Location, location, location

This is perhaps one of the most common real estate catchphrases. This language in a listing puts a heavy emphasis on a property’s location, which could potentially indicate that the house itself leaves something to be desired.

Recommended: First-Time Homebuyer Guide

15. Loft

“Loft” indicates that the home is large, open, and airy, with high ceilings and few interior walls. The bedroom, for instance, may be situated on an open second-floor landing that looks out directly onto the living room below. This may make for a picturesque living situation, but also one with relatively little privacy.

16. Modern

Here’s a tricky one. Although you might assume “modern” means that a place is newly constructed and contemporary in style, it can also refer to mid-century modern, an era of architecture and design dating to the 1950s and 1960s with a “Mad Men” vibe.

17. Motivated seller

“Motivated seller” means that the seller is motivated to make a deal go through and may be willing to hear lower offers or make concessions to get it to happen.

18. Move-in ready

“Move-in ready” typically means a home doesn’t need any major, mandatory repairs and is ready for you to start living in as soon as you’ve closed on the property. Of course, this term does indicate that the seller probably has a lot of leverage to demand the highest possible offer on the home.

19. Natural landscaping

“Natural landscaping” might indicate that there’s actually very little landscaping at all. Rather, the property may have lots of wild-growing flora that needs to be cleared to create an organized outdoor living space, depending on your taste.

20. Original details

As with “well-maintained,” “original details” suggests that the home has some older features that you may love, but may also require some maintenance/upgrading in the future.

21. Priced to sell

“Priced to sell” often means that the seller is pretty set on the price they’ve offered. It may indicate that you probably won’t be able to negotiate it down too far.

22. REALTOR (in all caps)

Although “real estate agent” and “realtor” are often used interchangeably, REALTOR is actually a term trademarked by the National Association of REALTORS (NAR) . Real estate agents can only use the title REALTOR in all caps if they are members of NAR and adhere to the organization’s strict code of ethics.

23. Room to roam

A home with “room to roam” is typically one with a larger-than-average lot with room to create outdoor living/play spaces or grow a garden. Or it may indicate that the house has a rambling layout.

24. Rustic

At its best, “rustic” might mean natural wood fixtures and a kind of casual, barn-inspired style. At its worst, “rustic” might mean old, unprofessionally constructed, or poorly maintained.

25. Serious buyers only

This term is usually meant to keep casual browsers or open-house visitors who are “just-looking” at bay. The seller likely doesn’t want to waste their time with people who aren’t seriously considering making an offer.

26. TLC

Short for “tender loving care,” TLC is yet another term in real estate listings that typically indicates the home in question needs some renovations and repairs before it’s comfortable — or even livable.

27. Turnkey

Basically a synonym for move-in ready; just turn the key, and you can set up your home!

28. Unique

“Unique” is another word that can go either way. It could be used to describe a lovely, one-of-a-kind feature, like a rooftop patio. Or it could be used to describe something oddball, like a sunroom converted into a photographer’s darkroom.

29. Up-and-coming neighborhood

An up-and-coming location is one that might actively be evolving or drawing new residents. However, it can also indicate that the neighborhood may still contain a fair number of run-down homes and have a way to go before it’s considered a hot housing market.

30. Vintage

“Vintage” is generally code for “really outdated.” Those 1960s appliances might look cute in the pictures, but how much more life do they have in them before they need to be replaced?

31. Well-maintained

This term can act as a yellow light. “Well-maintained” often indicates that a property has some age on it. (After all, if it’s new, there’s nothing that has needed maintenance yet). An older home isn’t automatically a bad thing, but it does mean you may be faced with upgrades or appliance replacements sooner rather than later.

💡 Quick Tip: Lowering your monthly payments with a mortgage refinance from SoFi can help you find money to pay down other debt, build your rainy-day fund, or put more into your 401(k).

The Takeaway

If you feel like property listings are sometimes written in a foreign language, you’re not entirely off-base. Listing agents often use terms that may be well-known in real estate circles, yet are unfamiliar to the average first-time home-buyer.

Agents may also use vague-sounding terms and phrases to make a home’s less-appealing qualities sound more attractive. Knowing how to decode real estate listings can be a great first step toward finding the perfect home.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

What are active listings?

For a house listing to be considered “active” the house must be currently on the market and available for purchase. You should be able to schedule a showing of the house or make an offer on it.

What is a latent defect in real estate?

A latent defect is a hidden problem in a house that isn’t apparent during a routine inspection. If you buy a house and later discover an existing latent defect, you may have some legal recourse. But it’s wise to get an experienced home inspector to go through a house before you buy it to help minimize the risk of discovering a latent defect later on.

What are the three most important words in real estate?

The famous saying “location, location, location” is meant to describe the most important factors that make a property desirable. Where a house is located impacts the house’s value, the availability and quality of local services and amenities, and the safety and resources of its neighborhood.

Photo credit: iStock/irina88w

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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.

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

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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.

SOHL-Q225-042

Apr

2025

Are You Ready to Buy a House? — Take The Quiz

By Janet Siroto | Financial Independence, Home Ownership, Life & Career, mortgage | No Comments

Buying a house can be the single largest financial move you’ll ever make. What’s more, once purchased, your home is likely to be your biggest asset and possibly a path to building wealth.

So this rite of passage probably isn’t something to be done without a lot of preparation. For instance, when preparing to buy a home, you usually have to focus on such factors as:

• Saving for a down payment

• Optimizing your credit score

• Understanding what your monthly expenses will be

• Considering the dynamics of the real-estate market

• Researching where you want to live

• Making sure you’re ready for the responsibilities of homeownership.

You’ll learn more about these factors in a minute, but first, take this quiz to get a read on just how ready you are to dive into house-buying. While it won’t answer the question, “Am I ready to buy a house?” definitively, it can help you gauge where you stand.

Then, read on to learn more about how to make snagging your dream house become a reality.

Key Points

• Financial readiness involves saving for a down payment, optimizing credit scores, and understanding monthly expenses.

• Real estate market dynamics and preapproval provide a competitive edge in homebuying.

• Home maintenance requires budgeting and time for repairs and regular upkeep.

• Community integration involves settling in one area for several years to recoup costs.

• A favorable debt-to-income ratio and credit score improve mortgage offers and interest rates.

Home Buyer Readiness Quiz

Now that you’ve taken the quiz, here’s more intel on how to get ready to buy a house.

Recommended: First-Time Home Buyer Guide

Financial Factors

Home ownership can be quite expensive, and has become especially pricey in recent years. As you may know, housing prices soared during the pandemic, rising over 40% in some areas. In an effort to stem that, as well as other aspects of inflation, the Fed has been raising interest rates, so it’s become more expensive to borrow money, too, further squeezing potential homebuyers.

But don’t let that discourage you: Homeownership is still a goal you can realize, especially if you prepare for the following:

• Down payment: Ideally, lenders like to see a 20% down payment (although SoFi offers flexible down payment options). Plus, you’ll need to have enough money left over for closing costs, moving costs, and any renovation costs involved.

• Private mortgage insurance: If you are putting down less than 20% on your home purchase, you may have to pay private mortgage insurance (PMI). This helps protect your lender as you may look like a less well-qualified home purchaser. This cost is typically charged along with your monthly interest payment by the lender. It’s wise to include this amount in your calculations, if necessary, as you move toward buying a house.

• Income: Knowing the answer to “When can I buy a house?” doesn’t depend on a particular salary. However, mortgage lenders do like to see two years of steady income, because both job continuity and consistent income are important.

• Debt-to-income (DTI) ratio: You’ll need to see if your monthly income allows you to afford the mortgage payment you’d be taking on. This typically involves calculating your debt-to-income ratio or DTI.

Here’s an example: Say you make $6,000 a month, before taxes. You’re paying $1,500 a month in rent, and when you add in car payments, credit card debt, and student loan payments, that equals another $700. You’ve got monthly expenses, then, of $2,200; when you divide that by your monthly income ($2,200/$6,000), then your debt-to-income ratio is 36.7%, which is in the range of what many lenders like to see.

• Credit score: It’s helpful to know your credit score before you go home shopping and, if it’s under 700 (meaning either at the low end of a good score or a fair credit score), work to build it. That can open you up to more mortgage offers and lower interest rates.

• Mortgage options: Speaking of mortgages, connecting with lenders or mortgage brokers can help you gain a better understanding of how much house you can afford, what kinds of mortgages are available, and whether you can get prequalified or even preapproved before you shop in earnest. This can give you an edge in or possibly even be necessary in today’s tight housing market.

• Homeownership costs: In addition to the mortgage payment and any PMI, you’ll need to budget for property taxes, heating costs, and other regular expenses. Make sure to factor those in as you develop a budget for your life as a homeowner.

Get matched with a local
real estate agent and earn up to
$9,500^‡ cash back when you close.

Pair up with a local real estate agent through HomeStory and unlock up to
$9,500 cash back at closing.^‡ Average cash back received is $1,700.

Recommended: How to Qualify for a Mortgage

Housing Market Conditions

When determining if you’re ready to buy a house, also consider housing market conditions. Among the key factors:

• Location: Of course, you’ll want your home to be in a desirable location, however you define “desirable.” It could mean being in the heart of a busy city — or in a peaceful place along a river. If you have or plan to have a family, quality schools are likely important, and so forth.

It’s likely going to make your house hunt more manageable and productive if you narrow down where you want to live to a few towns or neighborhoods. Otherwise, you might spend a lot of time and effort driving all over and not being able to whittle down the choices.

• Real-estate dynamics: In desirable locations, competition is fierce today, with homes often selling quickly after being put up for sale and bidding wars occurring. And, as demand has increased, available housing (especially for first-time homebuyers looking to purchase in affordable price ranges) has therefore decreased.

So, you’ll have to be prepared to compete in the current housing market conditions, which means having your financial situation in order so you can make a timely offer on a house of choice.

Check out local real estate
market trends to help with
your home-buying journey.

Lifestyle Considerations

Let’s say you’re confident that you have the financial resources to purchase a home in your neighborhood of choice. Before you move forward, here are a couple of lifestyle issues to consider:

• Home maintenance: If you’re used to renting, your landlord has played a key role in home repairs and so forth. If you buy a home, you would now be your own landlord. That means dealing with broken boilers, leaky roofs, yard maintenance, and more. Be sure you budget for that financially and are also prepared for the responsibility.

• Community: Think about whether you are ready to settle down in a particular community for at least a few years. If not, you may not break even when you sell the house you bought. Here’s why: It can take time to recoup closing costs and other expenses you covered when purchasing the home.

The Takeaway

Homeownership can be the foundation of the American dream for many people. It’s also a potential avenue to build wealth. But when you should buy a house depends on a variety of factors. Before you dive in, do your research, save for your down payment, and optimize your finances so you are ready to handle the responsibility.

[kicker_hl_lock_days]

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

‡Up to $9,500 cash back: HomeStory Rewards is offered by HomeStory Real Estate Services, a licensed real estate broker. HomeStory Real Estate Services is not affiliated with SoFi Bank, N.A. (SoFi). SoFi is not responsible for the program provided by HomeStory Real Estate Services. Obtaining a mortgage from SoFi is optional and not required to participate in the program offered by HomeStory Real Estate Services. The borrower may arrange for financing with any lender. Rebate amount based on home sale price, see table for details.

Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.

HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.

SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.

If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.

Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.

SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.

The trademarks, logos and names of other companies, products and services are the property of their respective owners.

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.

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.

SOHL-Q225-015

How to Combine Bank Accounts

How to Combine Bank Accounts in 4 Steps

1. Decide Where to Keep Your New Account

2. Start Shifting Accounts

3. Check That Your Account Is Up and Running

4. Close the Unnecessary Accounts

Benefits of Combining Bank Accounts

Increase your savings with a limited-time APY boost.*

Drawbacks of Merging Your Accounts

The Takeaway

FAQ

Can you merge two bank accounts together?

When should you combine bank accounts?

How do you link two bank accounts from different banks?

How to Find the Best Investment Advisor for You

What Is an Investment Advisor?

What Is a Registered Investment Advisor (RIA)?

What’s Required to Become a Registered Investment Advisor?

How to Choose an Investment Advisor

Start Local

Get Referrals

Ask About Credentials

Check Complaint History

Find Out About Fees

Get Details on Their Work Style

Take a Test Drive

Questions to Ask an Investment Advisor Before Hiring Them

The Takeaway

Coattail Investing Basics

How to Be a Coattail Investor

Who Do Coattail Investors Follow?

Activist Investors

Money Managers

Large Corporations and CEOs

Unlikely Visionaries

What Are the Risks of Coattail Investing?

The Takeaway

31 Real Estate Listing Terms Decoded: What Does “Cozy” Really Mean?

Real Estate Listing Terms Decoded

1. As-is

2. Built-ins

3. Cozy

4. Charming

5. Cottage

6. Custom

7. Fixer

8. Good bones

9. Great potential

10. Handyman special

11. Hidden gem

12. Investor special

13. Lives large

14. Location, location, location

15. Loft

16. Modern

17. Motivated seller

18. Move-in ready

19. Natural landscaping

20. Original details

21. Priced to sell

22. REALTOR (in all caps)

23. Room to roam

24. Rustic

25. Serious buyers only

26. TLC

27. Turnkey

28. Unique

29. Up-and-coming neighborhood

30. Vintage

31. Well-maintained

The Takeaway

FAQ

What are active listings?

What is a latent defect in real estate?

What are the three most important words in real estate?

Are You Ready to Buy a House? — Take The Quiz

Home Buyer Readiness Quiz

Financial Factors

Get matched with a local real estate agent and earn up to $9,500‡ cash back when you close.

Housing Market Conditions

Increase your savings
with a limited-time APY boost.*

Get matched with a local
real estate agent and earn up to
$9,500^‡ cash back when you close.

Check out local real estate
market trends to help with
your home-buying journey.

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