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Buying a home is likely one of the biggest moves you’ll make in your personal and financial life, and your home may represent one of your largest assets.

If you take out a mortgage to help you buy it, you will end up making mortgage payments — and if your lender ends up servicing your loan after closing, you will make payments to that lender — possibly for decades. That’s why it’s important to shop around before committing to a mortgage lender and loan program that’s right for you.

Today, borrowers have more choices than ever. With the rise of online and marketplace lenders, there’s increased competition, which fuels improvements in process, service, and cost — and can mean a much better experience for you.

With so much choice, however, finding the right lender can feel overwhelming. To help simplify the process, we’ve listed five key things you may want to consider when shopping for a mortgage lender.

1. Does the lender offer competitive interest rates?

A good first step is to get the lay of the land by looking at various lenders and the rates and fees they advertise. Taking this step may help you understand what the market looks like overall and who may be offering competitive rates.

Remember that the rates and programs you are ultimately eligible for will likely depend not only on the lender you choose but also on your needs and financial situation. However, this initial comparison can give you a baseline to start working from.

You’ll also want to look at the common loan types offered. Interest rates for fixed-rate loans do not change over the life of the loan. Interest rates for adjustable-rate mortgages (ARMs) can change over the life of the loan and are influenced by benchmark interest rates.

Hybrid adjustable-rate mortgages are mortgages that offer an initial fixed rate for a certain period of time. These hybrid ARMs often offer a low introductory rate for 1, 3, 5, 7 or 10 years. Some hybrid ARMs will also offer an interest-only payment option for a specified period of time such as 10 years.

When the initial fixed-rate period is over, the interest rate is normally reviewed on an annual basis for adjustment. Although the benchmark index tied to the ARM rate may have moved much higher, these loans typically have yearly and annual interest rate caps to control rate and payment fluctuations.

When talking to a lender about their mortgage loans, it’s a good idea to not only ask about interest rate, but also about APR, or annual percentage rate. This figure takes into account certain fees like broker fees, points, and other applicable credit charges, giving you an easier way to compare loan offers.

2. Does the lender offer loan products with terms that suit your needs?

Your needs and financial situation can play a large part in which mortgage programs you choose and are eligible for. For example, some lenders require a 20% down payment to qualify for a mortgage.

If you can’t pay 20%, lenders may require that you have private mortgage insurance (PMI), which covers them in case you default on your mortgage payments. Mortgage insurance premiums vary depending upon many factors.

It’s a good idea to ask your chosen lender how much insurance payments will add to your monthly payment. Also keep in mind that, in certain circumstances, PMI does not apply, such as with some jumbo loan programs. In addition, PMI can be eligible for removal from your home loan later if certain criteria are met.

If you can’t afford a 20% down payment, you can look for lenders who offer more flexible down payment requirements. Also, consider what term — the length of time you’ll be paying off your loan — works best for you. See what kinds of terms lenders offer and the interest rates that accompany those terms.

A shorter term will likely come with higher monthly payments, but lower interest rates that result in lower interest charges over time. Not everyone can afford those higher monthly payments, however, in which case a longer term may be preferable. Note that longer terms usually mean that you end up paying more in interest over the life of the loan.

Once you’ve found a loan with rates and terms that work for you, you can typically obtain a rate lock from your lender, generally for the time it takes to close on the transaction, such as 30 or 45 days.

You may have to pay a fee if you want to lock in the rate for a longer extended period of time. However, once you do, it will guarantee that you have access to the mortgage at a specific rate during the lock-in period, even if interest rates rise while your loan is being processed.

3. What type of origination, lender, and other fees might you be responsible for?

We’ve already alluded to the fact that you’ll likely be on the hook for other costs in addition to your down payment. One good idea is to request a Loan Estimate (LE) for any mortgage you’re considering to see a solid estimate of what costs you may be facing.

Keep your eye out for things like:

•   Commissions Mortgage brokers are paid on commission, which is either paid by you, your lender, or a combination of both.
•   Origination fees These fees may cover the cost of processing your loan application.
•   Appraisal fees Appraisal fees cover the cost of having a professional come in and put a value on the home you want to buy. You must have a property valuation of some type in order to borrow money to buy a home and in most cases a full appraisal is required.
•   Credit report fee This covers the cost of the bank obtaining your credit report from the credit reporting bureaus.
•   Discount points Optional fee the borrower can pay to reduce or buy down their interest rate.

Unless you receive a seller or lender credit toward closing costs, the added fees will impact the overall cost of buying the home, so doing your research and reading the fine print up front might pay off.

Depending on the loan terms and fees charged, some will be paid upfront at the beginning of the application process (such as credit report and appraisal), while other fees might be paid at loan closing (such as lender fees and title insurance).

In some cases, under certain loan programs, you can borrow the money to cover these fees, which will increase your overall mortgage payment(s). Therefore, having a clear understanding of what fees you’ll owe is critical to understanding how much you’ll end up paying.

It’s a good idea to request from your lender a quote on all the costs and fees associated with the loan. A Loan Estimate (LE) is a typical form used to disclose loan fees to a borrower. Ask questions about what each fee covers. Have your lender explain any fees you don’t understand, and then find out which ones may be negotiable or can be waived entirely.

4. How much of the process is online vs. on paper or in person?

How much facetime you have to put in to apply for a mortgage can vary by lender. Some online banks will have you complete the process entirely online, while brick-and-mortar banks may require an in-person visit.

In the past, applying for a mortgage required a lot of physical paperwork. But much of this has now been replaced by online interactions. For example, you are now likely able to send your financial information like bank statements and W-2s electronically.

Lenders who complete much, or all, of the mortgage application process online may be able to offer lower rates or fees, since they don’t have the cost of brick-and-mortar bank locations and their employees to maintain.

That said, if you’re someone who likes face-to-face help, you may consider a lender that allows you to apply in person or a lender who utilizes facetime.

5. How quickly can the lender close once you’re in contract?

Once you’ve found the home you want to buy and you’re under a purchase contract with the seller, the amount of time it takes to close on a loan can vary. Depending on the situation, you may have to wait for inspections, appraisals, and all sorts of paperwork to go through before you can close.

However, your lender may offer you ways to speed up the process. For example, you may be able to get preapproved for a loan, which takes care of a lot of potentially time-consuming paperwork upfront before you’ve even started shopping for a home.

Ask your potentiallender how much time their closing process usually takes and what you can do to expedite it. Especially if you’re crunched for time, their answer can have a big impact on which lender you choose. After all, the faster you’re financed, the sooner you’ll be able to move in.

The Takeaway

Your relationship with your mortgage lender is likely to be a long one. Finding out basic information about potential lenders, like how they operate, what kinds of fees they charge, and whether they offer loan products that meet your needs can help you make a smart decision about what lender you want to use.

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.

FAQ

How can I decide what mortgage lender to use?

When you’re choosing a mortgage lender, important factors to consider include whether the loan terms it offers are competitive, what fees you would be responsible for, whether the process is online or in-person, and how quickly the closing can happen.

Should I shop around for a mortgage lender?

Though it takes time and effort, shopping around for a mortgage can save you money. Freddie Mac research found that buyers who applied with multiple lenders could potentially save between $600 and $1,200 a year.

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

SOHL-Q225-001

When lenders ask borrowers to list their assets during the mortgage application process, they’re looking primarily for cash and “cash equivalents” (assets that can be quickly converted to cash). But that doesn’t mean you can’t or shouldn’t include other types of assets on your application.

The assets you choose to include could help determine the type of mortgage you can get and the interest rate you’re offered. So it’s important to be prepared with a well-thought-out list of assets for your lender.

What Is Considered a Financial Asset?

When you apply for a loan, you can expect your lender to ask about your income, the debts you owe, and the assets you own. What’s an asset? In the broadest sense, a financial asset is anything you own that has monetary value and can be turned into cash. But all assets are not created equal when it comes to borrowing money.

Types of Financial Assets

Some assets can take longer to liquidate than others, and the value of some assets may change over time. So it can be helpful to break down your assets into different categories, including:

Cash and Cash Equivalents

This category includes cash you have on hand (in a home safe, for example); the accounts you use to hold your cash (checking, savings, and money market accounts); and assets that can be quickly converted to cash (CDs, money market funds).

Physical Assets

A physical or tangible asset is something you own that can be touched and that would have some value if you had to sell it to qualify for your loan or to make your loan payments. (If you need to use this type of asset to qualify for a mortgage, the lender may ask you to sell it before you close.) Some examples of physical assets include homes, cars, boats, jewelry, or artwork.

Nonphysical Assets

Nonphysical or nontangible assets aren’t as liquid as physical assets, and you can’t actually put your hands on them — but they still have value. This category includes workplace pensions and retirement plans (401(k)s, 403(b)s, etc.), and IRAs. You may be able to withdraw money from your account in certain circumstances, or borrowing from your 401(k) might be an option, but it can take time as well as careful planning to avoid tax and other consequences.

Liquid Assets

This category includes nonphysical assets that you can easily convert to cash if necessary. For example, a stock or bond that isn’t part of your retirement account would be considered a liquid asset.

Fixed Assets

Fixed assets are items you own that could be sold for cash, but it may take a while to find a buyer — and the value may have changed (up or down) since you made the initial purchase. You would list a valuable piece of furniture, an antique, or a real estate property as a fixed asset using the item’s current value — not its original purchase price.

Equity Assets

This category includes any ownership interest you may have in a company, such as a stock, mutual fund, or holdings in a retirement account.

Fixed Income Assets

Investment money lent in exchange for interest, such as a government bond, may be categorized as a fixed-income asset. (Yes, there can be some confusing overlap in how assets may be designated. Don’t let that hang you up: The goal is simply to keep your mind open to anything you own that might be helpful when listed as an asset on your application.)

Financial Assets to List on Your Mortgage Application

You may have heard or read that lenders tend to prioritize a borrower’s liquid net worth (the total amount of cash and cash equivalents you own minus any outstanding debt) over total net worth (everything you own minus everything you owe).

That’s partly because lenders want to be clear on where the money for your down payment and closing costs is coming from. When you apply for a home mortgage loan, a lender will want to determine if you’re a good financial risk, able to comfortably manage monthly mortgage payments — even if you suddenly have a bunch of medical bills to pay or experience a job layoff. So it can help your application if you have a healthy savings account, certificates of deposit (CDs), or other assets you can quickly liquidate in a pinch.

That doesn’t mean, though, that your lender won’t also note other assets you own when gauging your financial stability. Listing physical assets that can be quickly converted to cash may show your lender that you have options if you need more money for your down payment or to keep in cash reserves. And the assets you have in other categories could help bolster your application if you’re a candidate for a certain type of mortgage loan or a better interest rate.

Does Reporting More Assets Help With Mortgage Approval?

As you go through the mortgage preapproval process, you can ask your lender to help you determine which assets will help make your application stronger. You also could meet with your accountant in advance to go over what you have. If in doubt, you may want to list everything of value on your application — especially if you’re concerned about qualifying for the loan amount you want. Just be sure everything is accurate, because the lender will verify the information you provide.

Bear in mind the lender will also be looking at whether you have the credit score needed to buy a house. Your debt-to-income ratio will also be important.

How Mortgage Lenders Verify Assets

Your lender will want to be sure all the information on your application is correct, so you should be prepared to provide asset statements to support everything you’ve listed. Documents you may be asked for include:

Bank Statements

Lenders generally will ask to see two or three of the most recent monthly statements from your checking, savings, and other bank accounts. You can send copies of paper statements (if you still do paper) or you can download copies online. If you have cash deposits on your statements, you should be ready to answer questions about the source (or sources) of that money. Your lender will want to be sure you have enough money on your own to make your down payment and monthly payments.

Keep in mind that when you turn over your bank statements, your lender will look for clues to the stability of your financial health. If you have a history of overdrafts or other problems, your application could be denied, even if your current balances are sufficient to qualify for a mortgage.

Gift Letters

Some lenders and loan programs allow borrowers to accept a large monetary gift from a family member to help with their down payment. But you’ll likely have to ask your benefactor to sign a document stating you won’t have to repay the money, and the lender also may ask to see a copy of that person’s bank statements to verify he or she was the source of the money.

Retirement and Investment Account Statements

If you need more money to make your down payment or help cover closing costs, and you plan to withdraw or borrow money from a retirement or brokerage account, you should be ready to provide two to three months’ worth of statements from those accounts.

Appraisal and Insurance Paperwork

If you’re listing a physical or fixed asset, you may have to produce an appraisal report or insurance document that states the item’s current value and that it belongs to you.

The Takeaway

Making a list of your assets, and gathering up documents to verify ownership and value, may seem like a tedious exercise. But being prepared to provide a complete accounting of your assets — along with the other documentation you’ll need — could help you find and get the mortgage you want.

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.

FAQ

What is considered an asset for a mortgage application?

An asset is anything you have that has monetary value and can be turned into cash. On a mortgage application, liquid assets – cash and cash equivalents – are important. But a lender may take into account other kinds of assets, too, such as fixed assets or equity.

What is an asset statement for a mortgage?

An asset statement provides documentation about how much your assets are worth. A potential lender might want to see records from your bank, investment, and retirement accounts, gift letters, and appraisal and insurance information.

Photo credit: iStock/FG Trade

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

SOHL-Q225-003

Mobile, manufactured, modular. These types of homes sound similar, and they’re all prefabricated, but they differ in cost, customization, ease of financing, and in other ways, too.

When it comes to old-style mobile homes and modular vs. manufactured homes, here’s what to know if you’re considering a purchase.

What Is a Mobile Home?

Unlike a stick-built, or traditional, home built from the ground up, a mobile home was built in a factory before mid-1976. Original mobile homes looked like trailers, or campers. They have wheels and an exposed coupler for a trailer, making them easy to hook to a vehicle and move. But the name is a bit of a misnomer: Most are never moved.

Original mobile homes aren’t built anymore. They don’t meet the current safety standards, even if interior renovations can make them look appealing.

What Is a Manufactured Home?

A manufactured home is built in a factory, then transported to its destination in one or more sections. Sound familiar? That’s because manufactured homes are the 2.0 version of mobile homes.

In 1976, the U.S. Department of Housing and Urban Development (HUD) changed the “mobile home” classification to “manufactured” legally and began to regulate the construction and durability of the homes.

More change and innovation have come with time. That is covered below.

What Is a Modular Home?

Modular homes start their lives in a factory, where modules of the homes are built. The pieces, usually with wiring, plumbing, insulation, flooring, windows, and doors in place, are transported to their destination and assembled like a puzzle.

Modular homes are comparable to stick-built homes in most ways other than birthplace.

Recommended: Choose a Favorite From the Different Types of Homes

How Mobile, Manufactured, and Modular Homes Differ

These homes may all share a starting point, but there are key differences to know, whether you’re a first-time homebuyer or not. For the sake of simplicity, let’s compare manufactured homes and modular homes.

Construction

Manufactured homes are built from beginning to end in a factory on a steel chassis with its own wheels. Once a manufactured home is complete, it’s driven to its destination, where the wheels and axles are usually removed and skirting added to make it look like a site-built home, or it may be attached to a permanent foundation.

Construction and installation must comply with the HUD Code (formally the Manufactured Home Construction and Safety Standards) and local building codes.

Modular homes are built in pieces in a factory, then transported to the property. From there, a team assembles the home on a permanent foundation.

While a modular home may be built states away from its final home, it needs to comply with the state and local building codes where it ultimately resides.

Design

There’s a fair share of design differences when it comes to modular vs. manufactured homes.

Manufactured homes come in three standard sizes:

•   Single-wide: roughly 500 to 1,100 square feet

•   Double-wide: about 1,200 to 2,000 square feet

•   Triple-wide: 2,000+ square feet

The most significant limiting design factor of manufactured homes is the layout. As they must be delivered fully assembled on a trailer, they only come in a rectangular shape. In the case of single- or double-wides, there’s not much space to separate rooms or interior hallways to connect them.

In terms of design, there’s much more freedom in modular homes. They can be just about any style, from log cabin to modern, and can have more than one floor.

The design options of a modular home are similar to a stick-built home. Floor plan and style are only limited by a buyer’s budget and space. A modular home may look just like a site-built home upon completion.

Customization Options

Most makers of manufactured homes allow some customization, including:

•   Custom kitchen layout and cabinetry

•   Porches

•   Custom layouts (within the confines of prefab shapes)

•   Siding

•   Built-in lighting

•   Ceiling finish

•   Fireplace

•   Tiling

Similar to stick-built homes, modular homes have nearly endless customization options. From the style of the home to its size and layout, modular homes offer more flexibility for buyers.

Expense

The expense of a modular home vs. manufactured home can vary dramatically.

A modular home — also sometimes called a kit home — may cost less than a stick-built home, but it usually costs a lot more than a manufactured home.

Both modular and manufactured homes have a separate expense: land. In the case of manufactured homes, it may be possible to rent the land the home is delivered to, but owners of modular homes will need to buy the land they want to build on.

Another cost associated with modular homes is the foundation, which needs to be in place when the modules arrive. Manufactured homes affixed to a permanent foundation on land owned by the homeowner are considered real property, not personal property.

Here are some typical expenses associated with each home:

Another expense to keep in mind is financing. An existing modular home will qualify for a conventional mortgage or government-backed loan if the borrower meets minimum credit score, income, and down payment requirements.

Homebuyers building a new modular home often will need to obtain a construction loan.

Manufactured and mobile home financing is trickier. The key is whether the home is classified as real or personal property.

Manufactured homes classified as real property, including those used as accessory dwelling units that are at least 400 square feet, might qualify for a conventional or government-backed loan.

Financing options for mobile and manufactured homes classified as personal property include a chattel mortgage and an FHA Title I loan.

A personal loan is another option.

Recommended: Explore the Mortgage Help Center

The Takeaway

Mobile, manufactured, and modular homes have key differences. A manufactured home on leased land is not considered real property, while a modular home, always on its own foundation and land, is, and compares in most ways to a traditional stick-built home.

SoFi will finance a manufactured home if you qualify, refinance a construction-only loan to a traditional home mortgage loan or provide a mortgage for an existing modular 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.

FAQ

Is a modular home better than a manufactured home?

In terms of appreciation and resale value, a modular home has the edge over most manufactured homes. And if a manufactured home is on leased land, the owner may face lot fees that keep rising.

What’s the price difference between mobile, manufactured, and modular homes?

Generally, mobile and manufactured homes are much less expensive than modular homes. A mobile home, by its very definition, was built before mid-1976. The size of the price gaps depend on how customized the home is, where it is, and how large it is.

Between manufactured and modular homes, which is fastest to build?

Unless there are factory or supply chain delays, manufactured homes are typically faster to build than modular homes. (Of note: A modular home can often be built much faster than a stick-built home.)

Photo credit: iStock/Marje

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

SOHL-Q125-034

Insurance plans typically don’t cover cosmetic surgery, which can make paying for one of these pricey procedures a challenge. But if cosmetic surgery is a priority for you, there are ways to make it more affordable.

If you’re ready to get some work done, here are financing options to consider and tips to help you take the next step with confidence.

Understanding the Costs of Plastic Surgery

The cost of plastic surgery varies widely and is impacted by a number of factors. These include:

•   Location: Where you get the surgery can make a big difference in how much you end up paying. Surgery in big cities tends to cost more than in smaller towns, often due to demand and higher living costs.

•   Surgeon’s experience: Newer surgeons may charge less, but as they gain experience and recognition, their prices can go up. It might be tempting to save money by choosing a new surgeon, but it’s important to select a surgeon who’s certified and has extensive experience with the procedure you want.

•   Medical facility and anesthesia: Besides paying the surgeon, you’ll also have to pay for the operating room and anesthesia, and these costs can vary based on the facility.

•   Type of surgery and materials: Some surgeries are more complicated and require more materials, so they tend to cost more. For example, a lip implant might cost $2,500, while a full facelift can be well over $11,000. Generally speaking, the more complex the surgery, the higher the cost.

Common Cosmetic Procedures and Their Average Costs

As you think about budgeting for a cosmetic surgery, it helps to know how much you might be expected to pay. Here’s a look at the average costs of some popular procedures, according to the 2023 Plastic Surgery Statistics Report from the American Society of Plastic Surgeons:

Insurance Coverage for Plastic Surgery

Your health insurance plan is usually meant to cover procedures and treatments that are needed for health reasons. Often, coverage doesn’t extend to elective surgeries, including most plastic surgery.

Because of this, using health insurance for plastic surgery can be tricky. For example, rhinoplasty isn’t typically covered because it’s often done for cosmetic reasons. But if you have trouble breathing due to a deviated septum or another health issue, nose surgery might qualify for coverage.

When Insurance Might Cover Cosmetic Procedures

Whether or not insurance covers your procedure really depends on the situation. Here are some common surgeries that might be covered, though you’ll want to speak with your insurer about costs associated with your procedure:

•   Breast augmentation or reconstruction after breast cancer surgery (mastectomy)

•   Breast implant removal for health issues related to implants

•   Eyelid surgery (Blepharoplasty) for vision issues

•   Rhinoplasty for breathing or sleep issues

•   Skin removal surgery for ongoing rash, infection, or similar conditions

Navigating Insurance Claims for Reconstructive Surgery

Ultimately, the decision to cover your reconstructive procedure or any cosmetic procedure rests in the hands of your insurance provider. But the good news is, there are a few things you can do to increase your chances of getting your plastic surgery covered.

•   Take photos and jot down notes about your condition.

•   Keep a record of every doctor visit, hospital trip, or treatment you’ve tried, including any products or therapies.

•   Make sure you can show that you’ve tried everything else and that surgery is your last option.

•   Get letters from your doctor and other medical professionals stating that the surgery is needed for medical reasons (known as a Letter of Medical Necessity).

•   Choose a skilled, certified surgeon and a trustworthy treatment center.

Self-Funding Options

If your insurance doesn’t cover your plastic surgery, one of the best ways to pay is by saving up. Since surgeries are often scheduled months after your first consultation, you’ll have time to make a savings plan and consider other financing options. Putting money into a high-yield savings account savings account can also help, as you may earn extra money through interest.

Keep in mind that using tax-advantaged health care accounts like flexible spending accounts (FSAs), health savings accounts (HSAs), or health reimbursement arrangements (HRAs) to pay for cosmetic surgery is usually not allowed. This is because most cosmetic procedures aren’t meant to treat a medical problem or improve the patient’s health.

However, there are some exceptions. If a cosmetic procedure is needed because of a congenital disability, injury, or severe illness, you may be able to pay for it with your FSA, HSA, or HRA. To do this, you need a Letter of Medical Necessity explaining why the procedure is medically needed and how it will help with the issue.

Recommended: How to Set up a Health Savings Account

Financing Options for Plastic Surgery

Along with saving up for your surgery, there are a few other ways to help you cover your cosmetic surgery cost.

Payment Plan

Some surgeons offer payment plans that let you break up the cost of plastic surgery into smaller payments. Sometimes, these plans don’t charge interest or require a credit check. Just keep in mind that some doctors might suggest a medical credit card or a third-party lender that can come with interest and other requirements. It’s a good idea to ask your doctor about all available options.

Medical Credit Card

Designed to cover medical expenses, medical credit cards may come with 0% APR or a reduced APR if you pay off your balance within a certain period of time. For example, CareCredit offers 0% APR on eligible charges of $200 or more if the charge is paid back within six to 24 months.

But here’s the catch: If you don’t pay off the balance by the end of the 0% APR period, you may have to pay deferred interest. And those rates are usually 15% or higher.

Credit Card

Some credit card companies offer 0% APR for qualifying purchases (like plastic surgery) or for transferring a balance from one credit card to another if you pay off the balance within a set time. Usually, this time frame runs up to 21 months. But if you can’t pay it all off by then, you’ll likely face extra interest charges once the promotional period ends.

To qualify for this kind of card, you usually need a credit score of 670 or higher.

Personal Loan

Medical loans lets you borrow a specific amount of money, which you then pay back over time in monthly payments with interest.

Plastic surgery loans are usually unsecured personal loans, which means you don’t need to put up collateral, like your house or car. Because of this, lenders often have stricter approval requirements than they do for secured loans.

The average interest rate on a personal loan can vary widely, depending on the lender, your credit, and financial situation. As of October 30, 2024, the average interest rate on unsecured personal loans was 12.40%. But also remember that some loans come with extra costs, like origination fees (usually a percentage of the total loan amount), which can increase the overall amount you’ll pay back.

How difficult is it to get a personal loan? If you have a good credit score and proof of income, you may find the process fairly simple and straightforward. However, there are steps you can take to improve your chances of getting approved, including working to reduce existing debt and checking your credit report and credit score regularly and addressing any errors you see.

Recommended: How to Apply for a Personal Loan

Evaluating Financing Options

If you’re considering taking out a loan to finance plastic surgery, here are some key things to look for:

•   Fees: Watch out for extra fees, like origination fees, which can add to your loan costs. Also, see if there are any penalties for paying off the loan early.

•   Interest rates: A lower interest rate usually means smaller monthly payments and less interest to pay overall. Having good to excellent credit (among other factors) can help you qualify for the best rates.

•   Monthly payment: Check how long the loan term is. A longer term can mean lower monthly payments, but it might also mean you’ll pay more in interest over time. A personal loan calculator can give you a sense of how your monthly payments can change based on interest rates and payment terms.

•   Prequalify: Some lenders let you see the rates you might qualify for without impacting your credit score (this is called a “soft pull”). This step gives the lender a chance to estimate your rate based on your finances. Comparing rates from a few lenders can help you find the best terms.

•   Financial hardship protection: If you miss or delay loan payments, your credit score could be negatively impacted and you may have to pay late fees. If you’re struggling to make payments, ask your lender what options are available to you.

Risks and Considerations

As you weigh your cosmetic surgery financing options, keep in mind a few key factors:

•   Timing needs: If you need money quickly, a personal loan could be a good choice, as many lenders offer fast funding.

•   Affordability of payments: Make sure you can comfortably afford the monthly payments. Creating a repayment plan can help you stay on track without putting unnecessary strain on your budget.

•   Current debt: If you already have a lot of debt, adding a personal loan or credit card debt will stretch your finances even further and impact your long-term savings. It will also raise your debt-to-income (DTI) ratio, which lenders often consider when reviewing loan applications.

•   Credit: If your credit score is lower (FICO considers 579 or below “bad”), it might be harder to get a good interest rate or to qualify for a loan at all. It could be a smart move to work on improving your credit before taking on new debt.

The Takeaway

Cosmetic surgery can be pricey, but plastic surgery financing options can help make this big expense a little more manageable. Comparing different financing choices can help you determine what works best for your budget and your financial health.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

What are the common financing options for plastic surgery?

Some common ways to finance cosmetic surgery include taking out a personal loan, saving up the money, and using credit card or medical credit card. As you compare your options, consider things like interest rates and repayment terms so you can pick the best choice for you and your budget.

Does insurance cover any cosmetic procedures?

Insurance usually only covers surgeries that are needed for health reasons. Cosmetic surgeries, like most plastic surgeries, are usually not covered. So, before you schedule anything, check with your insurance provider to find out what is and isn’t covered.

Are there any risks associated with financing plastic surgery?

Yes, financing your plastic surgery can come with some risks. For example, using a personal loan or credit to pay for a procedure usually means you’ll pay interest, and over time this adds to the overall cost of the surgery. Plus, if you miss a payment, your credit score may be impacted. It’s a good idea to make sure you can handle the payments and understand all the terms before you commit.

About the author

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.

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If you’ve racked up a nice sum of cash or recently came into a windfall (such as a work bonus or tax refund), you may wonder where to put that money. Should you just keep it in checking? Open a high-yield savings account? Invest it all in the stock market?

The answer will depend on how soon you think you’ll need the money and how much risk you’re willing to take. Here’s a look at seven places you might consider storing your extra cash.

Low-Risk Places to Put Cash

What follows are four types of bank accounts that provide safety, convenience, and (in some cases) a competitive interest rate.

Checking Account

If you want easy and regular access to your cash, you might consider keeping it in a checking account at a bank or credit union. These accounts keep your money safe, since they are typically federally insured up to $250,000 per depositor, per institution. They’re also highly liquid — they provide check-writing privileges, ATM access, and debit cards, and there’s no limit on how many withdrawals you can make per month. These accounts are popular: According to SoFi’s April 2024 Banking Survey of 500 U.S. adults, 88% of people with a bank account have a checking account.

Since checking accounts are designed for spending (not saving), however, they generally pay little to no interest. As a result, these accounts aren’t ideal for storing extra money you plan to use later — say a few months or years from now. Some checking accounts also charge monthly fees.

Savings Account

A savings account is an interest-bearing bank account that is designed for saving (and growing) your money rather than spending it. You can open a savings account at the same bank or credit union as your checking account, or explore many of the online-only banks now available. Seventy-one percent of the people with a bank account in SoFi’s survey have a savings account.

Interest on a savings account is expressed as an annual percentage yield (APY). This is the rate you can earn on an account over a year and it includes compound interest (which is the interest you earn on interest added to your account throughout the year).

Like a checking account, the funds in a savings account are liquid. However, they are generally less accessible than the money in a checking account. You can’t write checks or use a debit card to draw money from your savings account. And, often, you are limited to six withdrawals per month. While the federal rule that limited savings account withdrawals to six per month was lifted in April 2020, many institutions still enforce this limit for electronic and online transactions and will charge you a fee if you exceed the cap.

A traditional savings account may provide a little more interest than a checking account. However, rates are generally low.

Money Market Account

A money market account is a type of savings account that comes with some of the features of a checking account, such as check-writing privileges and debit cards. You can find money market accounts at credit unions and traditional and online banks.

These hybrid accounts typically pay a higher APY than you can get with a checking account or traditional savings account. However, they often come with higher initial deposit requirements, along with higher ongoing balance requirements to avoid fees. Like other savings accounts, your money is typically insured and you may be limited to six withdrawals per month.

High-Yield Savings Account

High-yield savings accounts, typically offered by credit unions and online banks, are accounts that typically pay a substantially higher APY than the national average of traditional savings accounts. They generally also have low or no fees.

Other than that, these accounts function like regular savings accounts. They are typically federally insured up to $250,000 per depositor, per institution, should the bank or credit union fail. They also allow you to make withdrawals and transfers as needed, though your bank may limit you to six withdrawals per month.

While 59% of people in SoFi’s survey know about high-yield savings accounts, only 23% have one.

Higher-Risk Places to Put Cash

First, make sure you have a solid emergency fund — 45% of the SoFi survey respondents said they have less than $500 in emergency savings, which is far below the recommended three to six months worth of savings. Once you have enough emergency savings and you’ve paid down any high-interest debt and are contributing to your 401(k) at work (at least up to any employer match), you may want to consider longer-term, higher-risk investment options with your extra cash.

Stocks

Stocks are a type of security that gives you a share of ownership in a specific company. When you buy stock, you have the potential to grow your money in two different ways. One is through appreciation of the stock’s price (or value). In addition, you may be able to earn dividends if the company distributes a portion of its earnings to stockholders.

While stocks offer a great potential for growth, they also come with significant risk. Stock prices can drop significantly in a short time, so it’s possible to lose money by investing in stocks.

Bonds

Bonds are generally considered a lower-risk investment than stocks. With bonds, the company (or government agency or organization) issuing the bond acts as a borrower and you act as a lender, providing the issuer with money to fund projects or expansion efforts. In exchange, the issuer promises to pay you a rate of interest on top of the bond’s principal (your initial investment).

There are several kinds of bonds:

•   Corporate. These are issued by private and public companies.

•   Municipal. These are issued by states, cities, and counties.

•   Treasury. These are issued by the U.S. Department of the Treasury on behalf of the federal government.

When you invest in bonds, you generally get a predictable stream of income through interest payments. If you hold onto the bond until it matures, you also get back the entire principal, so there’s minimal risk involved. However, typical returns for bonds tend to be much lower than typical returns for stocks. Many investors will use bonds to balance out higher-risk investment options, such as individual stocks.

Exchange-Traded Funds and Mutual Funds

Exchange-traded funds (ETFs) and mutual funds offer a pool of securities, such as stocks and bonds, in one investment. You can pick and choose a few mutual funds and/or EFTs to create your own portfolio, or you can choose to go with a target date fund.

Target date funds offer an all-in-one solution by investing in a mix of stocks, bonds, and other investments that suit your goals and risk tolerance. Typically, these funds automatically become more conservative as the fund approaches its target date (such as your retirement age) and beyond. Keep in mind, however, that the principal you invest in an EFT or mutual fund is not guaranteed.

The Takeaway

Where to put a stash of cash? A lot depends on how soon you’ll need the money and your tolerance for risk.

If you plan to use the money right away, you may want to go with a checking account. If you’re saving for a goal that is a few months or years away, you might consider putting the money in a high-yield savings account or a money market account. For longer-term savings goals (at least five years off), investing in the market could make sense.

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.

About the author

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.

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