Pretax money is invested before any taxes have been deducted, while after-tax money is invested after taxes have been deducted. Investments in tax-deferred retirement accounts such as IRAs and 401(k)s are made pretax, which means there is a larger sum of money to invest. While applying taxes reduces the amount of money available to invest, sometimes after-tax investment vehicles such as Roth IRAs can produce better overall returns because, unlike pretax accounts, withdrawals from these after-tax accounts can be made without owing taxes. A financial advisor can help you evaluate after-tax and pretax investment options.
Pretax vs. After-Tax Basics
The terms “pretax” and “after-tax” when applied to income, expenses or contributions tell you whether taxes have been applied to the amount. Wages, for example, are normally after-tax, because the employer withholds taxes before handing out paychecks. Contributions to Roth-type retirement accounts and regular brokerage and bank accounts are also made after tax.
Many people save for retirement pretax by contributing money to IRAs and similar tax-advantaged accounts. These funds can be placed in a retirement account before any income taxes are levied. When you are preparing your tax return, any money you put into an IRA, for instance, is deducted from your total taxable earnings, which generally reduces your total tax liability.
Comparing Pretax and After-Tax
Investing money before taxes have been levied means you’ll be investing more than you would if you did it after paying taxes. And, all else equal, investing a larger sum means earning more from your investment. This simple rule of thumb underlies much of the popularity of saving for retirement pretax using IRAs and similar tax-advantaged accounts. If people could only save after-tax dollars in ordinary bank or brokerage accounts, there would be less incentive to sock away money in these accounts.
However, pretax is not always the best. Sums invested pretax in IRAs and similar retirement don’t completely evade taxation. Taxes on contributions as well as any earnings from investments in the account are only deferred. Savers will owe taxes later, at their then-current rate of taxation, when they withdraw funds from the account.
If the individual’s tax rate is lower in retirement, pretax investing can be advantageous. However, if you earn a lot of income over your career and have a large retirement nest egg, your required minimum distributions and other sources of income could mean your income and tax bracket are higher after you’ve retired than when you put money away pretax.
If an individual’s tax rate will be higher in retirement than it is at the time the investment was made, it can be better to invest after-tax in a Roth-type retirement account. This can work well for younger people just starting their careers before their earnings increase enough to put them in higher income-tax brackets. After paying taxes a relatively low rate when contributing, funds in these accounts grow tax-free and can be withdrawn later without owing any taxes.
Choosing Pretax or After-Tax
Deciding whether to invest pretax or after-tax requires considering your individual situation. Examine the following factors:
Account for investment returns: Start by looking at the expected rate of return on your investments.
Understand how taxes are applied: Capital gains on stocks held more than a year generally are taxed at a lower rate than ordinary income such as interest on bonds. Considering tax treatment of different types of income can help you decide on an after-tax or pretax investment.
Calculate returns after all taxes are applied: Roth IRA or Roth 401(k) withdrawals won’t incur taxes as long as the investor is age 59.5 or older and has had the account for at least five years. For pretax investments, it’s necessary to apply taxes to any sums withdrawn from the accounts before you can estimate the actual return. For instance, if you withdraw $10,000 from a pretax investment and are in a 25% tax rate in retirement, the amount left after taxes would be 75% of $10,000 or $7,500. Money invested in a regular brokerage account with no tax advantages has to pay any taxes due on the money before it’s invested as well as on earnings but as they are earned. However, withdrawing money from a regular account doesn’t usually trigger any additional taxes.
Compare post-tax and after-tax: For example, if you want to invest $10,000 in an after-tax account and you are in a 25% tax bracket, you’ll have to earn approximately $13,333 and pay $3,333 in taxes in order to have $10,000 available to invest. If that $10,000 earns 5% annually for 10 years, it will be worth $16,289. You can withdraw all of it without owing taxes after age 59.5 if the account is at least five years old.
Say instead you invest $13,333 in a pretax account, also 5%. After 10 years, you’ll have $21,718. If you withdraw the full amount and your rate is still 25%, you’ll owe $5,429 in taxes and be left with the same $16,289 as you got with the after-tax investment.
If, however, during the interim you have retired and your tax rate has dropped to 15%, you’ll only owe about $3,258 on emptying the pretax account. This will leave about $18,641. In this case, the pretax investment produces a larger return net of taxes.
If you are in the 15% bracket when you fund an after-tax investment and are in the 25% percent bracket when you retire, the situation is reversed. In that case, you’d need about $11,765 to have $10,000 to invest after tax. Again, you’d wind up with $16,289, which you can withdraw tax-free.
Investing $11,765 pretax at 5% gives you $19,164 after 10 years. a sizable increase. If you withdraw that amount when you are in the 25% bracket, however, your nominal tax liability will be $4,791, leaving you just $14,373. In this case, the after-tax investment generates a better overall result by about $1,916, which is the difference between $14,373 from the pretax method and $16,289 using an after-tax approach.
The Bottom Line
You can invest pretax before taxes are levied or after-tax after taxes have been applied. Pretax investing and after-tax investing both have advantages and drawbacks. Whether it is advisable to invest pretax or after-tax depends on individual circumstances, including whether you expect to be in a higher or lower tax bracket when you withdraw funds.
Investment Tips
Deciding whether to invest pretax or after-tax requires you to understand your tax situation and financial goals. A financial advisor is well-equipped to help you do just that. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
SmartAsset’s Investment & Return Calculator can make it much simpler to compare the relative advantages of after-tax and pretax investing.
Mark Henricks
Mark Henricks has reported on personal finance, investing, retirement, entrepreneurship and other topics for more than 30 years. His freelance byline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.
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.
First-time homebuyers can prequalify for a SoFi mortgage loan, with as little as 3% down.
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).
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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.
Need help? SoFi’s Mortgage Loan Officers can provide one-on-one assistance as you work your way through the mortgage application process, so you can know what’s expected at each step. And SoFi’s online application makes it easy to get started.
Check out the flexible terms and competitive rates on a SoFi Home Loan today.
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SoFi Mortgages Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
If you haven’t started your children or teens off with a kids checking account optimized for their needs, you’ll want to help your college student open a checking account before they begin school.
Opening a checking account for your child can teach them about money management and financial responsibility, along with providing them an easy way to make debit card purchases. It’s never too late to get started.
One advantage to helping your young adult open their first student checking account is they have more options than they might have when they were 16 or younger. Students over 18 can open a bank account with few restrictions.
But choosing a student checking account may give them access to higher interest rates and added features and benefits, along with fee-free checking, no monthly maintenance fees, and no minimum deposit to open an account.
12 Best Student Checking Accounts
Not surprisingly, many of the best student checking accounts come from banks that also offer some of the best checking accounts for any age. However, the products below – in most cases – are tailored for young adults from the ages of 18 to 24, with the features this age group desires most, including an intuitive mobile app and low or non-existent minimum deposit requirements.
1. Best for Students under 18: Capital One MONEY Teen
Most of the student bank accounts on our list exclude children under the age of 17 or 18. Capital One MONEY Teen checking is available to children ages 8 and up. It comes with all the benefits and security of a big bank, providing peace-of-mind. This includes access to Capital One branches and Capital One Cafes for in-person service. This account also serves as a great tool to teach your young adult the basics of banking.
Capital One MONEY Teen checking is a joint account with no monthly fee, no overdraft fees, and access to 70,000 ATMs with no fees. Plus, earn 0.10% on all balances, including those in checking.
You can link Capital One MONEY Teen checking to any other bank account through any bank or neobank, making it easy to transfer money to your teen while they are away at college. Plus, you can keep tabs on their spending with their linked account in the Capital One mobile app.
When they graduate, your teen can hold onto their MONEY account or transfer the funds into a top-rated Capital One 360 Checking account of their own.
2. Best for Working Students: Chime
Chime is not a bank. It’s a financial technology company and mobile app backed by Stride Bank, NA, and The Bancorp Bank. Many features make it perfect for working students. First, you can receive your paycheck up to two days earlier than you might at other banks with ACH deposit.
Plus, you can set up automatic transfers to your linked Chime Savings account, helping you to establish good financial habits early on. Simply set up Chime to transfer a percentage of your paycheck into your Savings Account every time you receive a direct deposit.
When you use your debit card for purchases, the “Save When You Spend” program rounds up your purchase and transfers the difference directly into savings. That small change can really add up, whether you’re saving for your first apartment after college, a new car, or your next tuition bill.
For working students looking to build their credit, Chime gives account holders access to a Credit Builder Secured Visa, with no annual fee, no credit check, and no security deposit required. Instead, the credit account is secured by your Chime checking account with monthly direct deposits.
Like many of the best student bank accounts on this list, Chime has no overdraft fee, no monthly service fee, no ATM fee for in-network ATMs, and no minimum balance requirements.
3. Best Account Opening Bonus: Chase College Checking
Chase Bank has been handing out student account opening bonuses like they hand out lollipops at their branches lately. College students ages 17 to 24 can snag a $100 bonus when they open an account online or at a local branch (students age 17 will need to visit a branch). You’ll just need to make 10 qualifying transactions within the first 60 days of opening the student bank account.
What’s a qualifying transaction? Virtually anything, according to the Chase website, including debit card purchases, online bill payments, Chase QuickDeposits, Zelle transfers, and ACH credits. Bank as you normally would, and you should easily earn that $100.
In addition to the generous sign-up bonus, Chase College Checking has no monthly fees for college students for up to five years, access to 16,000 ATMs and 4,700 branches across the U.S., and zero liability protection for unauthorized debit card purchases.
Chase Overdraft Assist covers purchases that exceed your account balance. You’ll pay no overdraft fee if you’re overdrawn by $50 or less at the end of the next business day.
4. Best for Yield: Ally Interest Checking
Ally Bank is the first bank on our list not designed specifically for students, but the vast array of features in this interest bearing checking account makes it ideal for young adults.
Ally Bank offers an APY of 0.25% on checking account balances and 4.00% APY on balances in a linked Ally Bank savings account. Neither account has any monthly fees.
Ally offers several features to help those on a tight budget manage their money. You can organize your money into spending and saving buckets, which can help you see exactly where your money goes each month. Ally will also review your bank accounts and help you find opportunities to save, and shuttle that extra money into your high yield Ally savings account.
Customers who have deposited $100 or more into their Ally checking account, or $250 via direct deposit, gain access to Ally’s CoverDraft service after 30 days. This protection covers up to $100 or $250 in charges that would overwise overdraft your account. Some purchases, including Zelle transfers, or ATM withdrawals, may be declined if they would put your account into overdraft.
Ally has no monthly maintenance fee, no overdraft fees, no ATM fee for in-network ATM transactions and no minimum balance requirement.
5. Best for Referrals to Earn Extra Cash: GO2bank
GO2bank, the digital bank associated with the top financial technology company Green Dot, offers an easy, straightforward money account with overdraft protection up to $200 with eligible direct deposits. The linked savings account pays a high 4.5% APY, with no fees for qualifying customers and no minimum balance requirement.
You can get regular ACH deposits from your job or side gigs up to two days earlier than most traditional banks. If you receive government benefits, such as Social Security, you can receive those deposits up to four days early.
Your GO2bank account will have a monthly service fee that costs $5 per month, unless you have a qualifying direct deposit that month. You will also pay fees for transfers from a linked debit card from another bank or fintech, mobile check deposits, and cash deposits.
If you are the type of person with friends who come to you for advice, you can earn $50 for each friend you refer to GO2bank who signs up with direct deposit. Your friend will also earn $50. You can use this offer for up to 30 friends, yielding $1,500 annually. This makes a GO2bank account great for social media influencers or college students with a large friend group.
6. Best for Full-Service Banking: Bank of America Advantage SafeBalance Banking
Bank of America Advantage checking accounts offer options for people in various stages of their financial life. College students might be best to start out with Bank of America Advantage SafeBalance banking, a straightforward money account with no overdraft fee and no checks.
The account has no monthly fee for students under the age of 25 or customers under the age of 18. Preferred Rewards customers also receive free checking. There is a $25 minimum deposit to open an account.
New Bank of America customers can earn a $100 account opening bonus when they open an account and set up direct deposits of $1,000 or more within 90 days.
7. Best for Comprehensive Money Management: PNC Virtual Wallet Student
Money Magazine named the PNC Virtual Wallet on its best banks for students list three years running. PNC Bank divides this mobile account into three separate accounts for everyday spending, “reserve,” or short-term savings, and “growth” for long-term savings.
The account has no monthly service fee for students for up to six years, along with all the benefits of a regular PNC Virtual Wallet. Additionally, students receive a courtesy refund of your first overdraft fee on your Spend account, one free incoming domestic or international wire transfer per statement period, and free paper statements if you opt in to receive them.
Once six years have passed or you are no longer a student, your account converts into a regular PNC Virtual Wallet, which may have associated monthly fees. Check the PNC website at that time to determine the fees and how you can waive them.
Your PNC Virtual Student Wallet pays a 0.01% APY on money in your Reserve account, and .02% on account balances up to $2,499 in your Growth account, with .03% APY on balances over $2,500. These may not be the best rates available, but the reputation of PNC Bank, along with the money management features in a Virtual Wallet Student account, make this an account worth considering for students just learning to budget.
8. Best for Establishing Savings Habits.: Wells Fargo Clear Access Banking
As one of the Big Four banks in the U.S., Wells Fargo offers a reliable and safe place to store your money, plus access to thousands of branches nationwide.
The Wells Fargo Clear Access banking account is great for teens and college students, since it’s available for account holders ages 13 to 24. Anyone under the age of 18 will need to open their account in a branch and anyone younger than 17 must have an adult aged 18+ as a joint account holder. The account has no monthly maintenance fee for anyone 24 or younger. A $25 minimum opening deposit is required.
Wells Fargo Clear Access banking is a simple, straightforward money account with no checks and personalized service at Wells Fargo branches. There are no overdraft fees with the account, but also no overdraft protection. Transactions that exceed the account or minimum balance amount will be declined, which helps put teens and young adults in charge of their money.
You can link your Clear Access bank account to a Way2Save Savings account and earn a 0.15% APY. You can establish good money habits by setting up automatic savings. Wells Fargo will transfer $1 from your Clear Access account into your checking account each time you use online bill pay or use your debit card for a one-time purchase. You can also transfer as little as $25 per month or $1 per day into your account to see your savings grow even faster.
9. Best for Cash Back: Discover Cashback Debit
The Discover Cashback Debit account may not be marketed to teens and students, by name. But, it’s enticing to anyone looking for a standard checking account with no monthly service fees and 1% cashback on debit card purchases, up to $3,000 per month. It’s highly unlikely for most college students to max out that free money (unless they are putting housing, tuition, and car expenses on their card).
Discover Cashback! debit card offers many of the benefits you’d expect from these top-rated money accounts, including early direct deposit, 60,000+ no-fee ATMs, and overdraft protection from your linked Discover Savings with no fees. Discover charges no fees for insufficient funds, bank checks, regular checks, or expedited delivery of a replacement debit card.
These features make it one of the most convenient accounts you can hold. Plus, you don’t have to worry about “aging out” of the account and facing fees for a non-student bank account. Your Discover Cashback Debit account will be free no matter your age. Link it to a Discover Savings Account to earn 4.0% APY with no minimum deposit required.
10. Best for Unlimited Out-of-Network ATM Fee Reimbursement – Axos Bank Rewards Checking
Another bank account not marketed to students but meeting all their needs is the Axos Bank Rewards Checking account. This account has no monthly fees. It also reimburses ATM fees for out-of-network ATMs nationwide, which is great for students who travel domestically or who don’t have ATMs in their network on campus.
Pay no overdraft fee or non-sufficient funds fees with this account. Best of all, earn an APY of 0.40% on your checking balance if you receive monthly direct deposits of $1,500-plus. Young investors can ramp up their interest rate by 1% with an average daily balance of $2,500 in an Axos Invest Managed Portfolio Account, plus another 1% by holding $2,500 in a self-directed trading account. If you take out a loan through Axos, you can add another 0.60% to your APY.
College students likely won’t regret opening an Axos Bank account to take them through adulthood, especially with options for investing, low mortgage rates, car loans, and more.
Plus, earn a welcome bonus when you open an account and have direct deposits of at least $1,500 within a single calendar month during the first three months of account opening.
11. Best Credit Union: Alliant Credit Union Teen Checking
Alliant Credit Union offers a teen checking account for minors ages 13 to 17. The account is insured up to $250,000 per account holder by the National Credit Union Administration (NCUA). The adult account holder must be an Alliant Credit Union member. But it’s easy to join by depositing $5 into an Alliant Credit Union saving account. Alliant Savings earns an APY of 0.25%.
The teen checking account has no overdraft fees or non-sufficient funds fee. It also has no monthly fees or minimum balance requirements. Account holders gain access to 80,000+ fee free ATMs nationwide plus $20 per month in ATM fee reimbursement for out-of-network ATM use. This is an interest earning checking account which also pays 0.25% APY on all balances as long as you have at least one deposit, via ACH direct deposit, mobile check deposit, or transfer from another bank or credit union, each month.
12. Best for Young Shoppers: Varo Bank
Varo Bank is another account not necessarily marketed to college students but definitely optimized for their needs. The Varo Bank debit card delivers up to 6% cash back, with money deposited into your Varo account as soon as you accrue $5 in rewards.
Like many of the best student accounts on this list, Varo has no monthly fee, no minimum balance requirements, and no overdraft fee. If you need money before payday, you can use Varo Advance, an interest-fee program that allows you to borrow up to $250 and pay it back within 30 days. You will not pay fees to borrow less than $20. Borrowing up to $250 comes with fees that can be as high as $15, depending on the amount of cash advance you need.
Varo Bank uses the Allpoint network of ATMs, with fee free access to 55,000+ ATMs nationwide. Using other bank ATMs could result in charges up to $3 from Varo and fees charged by the other banks, as well.
It pays to open a linked Varo Bank savings to take advantage of a high 3% APY. Account holders with direct deposits equal to $1,000 per month and a positive balance in their Varo checking and savings can earn up to 4% APY.
One of the best things about a Varo account is it can grow with you. You won’t pay additional fees as an adult out of college, so you can keep the same bank account you started with for your entire life if you want.
Methodology: How We Select the Best Student Checking Accounts
To find the best student checking accounts, we evaluated the monthly maintenance fees, ATM fees, minimum deposit requirements, features, benefits, banking services provided, along with customer service and mobile app access at several of the biggest and most well-known banks and credit unions.
ATM Network
Most banks have ATM networks or partner ATM networks of 20,000 or more ATMs nationwide where you can use your debit card with no ATM fees. You might be surprised to learn that even online banks and financial technology companies that are not a bank provide access to thousands of ATMs nationwide through partner programs.
Nationwide availability (physical locations or mobile access)
College students often split time between their college campus and the home where they grew up. Finding a bank with physical locations in the areas they live or an online bank that provides a mobile banking app with fee free mobile banking from anywhere is important.
Fees and minimum requirements
Bank fees no longer have to be a way of life for today’s young adults. We chose financial institutions with no monthly maintenance fees or easy ways to waive maintenance fees.
Benefits such as high APY, cash-back rewards, or other additional perks
Student checking accounts today are more than just “bare bones” places to store your cash. Many student bank accounts offer perks, benefits, and high-yield savings or an interest bearing checking account to provide added value.
Overdraft fees
Cash management mistakes happen, especially when young adults first start learning to budget and manage their finances. Many banks have no overdraft fees and some offer overdraft protection to help out in a pinch.
How to Choose the Best Bank for College Students
We’ve offered 12 solid options to help you choose the best student checking account. Before you open a student bank account, it’s a good idea to think about what you need in your primary checking account and a linked savings.
The list below makes it easy to review your must-haves and nice-to-haves when you choose your first bank account as a college student.
Best student checking account interest rates
If you’re looking to earn interest on your standard checking account, many banks offer this feature. Review annual percentage yield (APY) figures for your top choices.
Remember, a higher savings interest rate might benefit you more, since money in your checking account tends to fluctuate based on paychecks, bills, and expenses. The best checking account may not pay interest, but can save you money in other ways.
Annual Percentage Yield (APY)
Likewise, you can put money in your pocket with an account with linked savings offering a high annual percentage yield (APY).
Mobile Check Deposit
If you get paid via paper checks, you’ll want to find an account with a mobile app that offers mobile check deposit. Find out how fast deposits clear, and if mobile banking services are fee free.
No Monthly Maintenance Fees
Many banks today make it easy to find a free checking account with no maintenance fees. If you have to pay a monthly maintenance fee, find out exactly what you’re getting for your money. Find out if the perks and benefits, such as a cash back debit card or reimbursement of ATM fees make the maintenance fees worthwhile.
Minimum Deposit and Minimum Balance Requirements
When you’re just getting started, cash may be tight. It’s important to find an account with no minimum deposit to open.
Banking Services Provided
Accounts should have customer service online, by phone or in branches, plus an easy-to-use mobile app and a debit card with no ATM fees.
FAQs About Student Checking Accounts
Read what people are asking about the best student checking accounts, including minimum deposit requirements and benefits of a student checking account.
What are the benefits of a student bank account?
A bank account tailored for students gives young adults a head start on their financial future and learning how to manage money. For students who work, they can receive direct deposits in their student account, pay bills online, and send money to friends and family using Zelle.
How to get a student checking account bonus?
Several student checking accounts, including Chase, provide sign-up bonuses. Make sure to read the fine print and complete the requirements, which may include setting up direct deposit or making a minimum opening deposit, to collect the bonus.
Can I open a student checking account without a deposit?
To open a student checking account without a minimum deposit amount, simply look for a bank account, like Varo, that has no minimum opening deposit.
Are there any downsides to opening a student checking account?
When you open a student checking account, you’ll want to make sure you won’t pay monthly maintenance fees. Some student checking accounts convert to a regular account once the student graduates, and there may be fees associated with the regular account.
Is there an age limit on a student checking account?
Most student checking accounts are open to students from the age of 18 to 24 without a joint account holder. Customers under the age of 18 may be able to open an account with a joint owner.
Can minors open student checking accounts?
Accounts like Capital One Money Teen are available to children ages 8 and up with a joint account holder. Some other accounts require students to be 18 or older.
What happens to your student checking account when you graduate?
Many of the student bank accounts on this list won’t change when you graduate college. Others offer the option to convert your account to one of the bank’s regular checking products. A Chase College Checking Account has no monthly fees for your first five years in college, but if you graduate or exceed that time frame, you might pay a $6 monthly maintenance fee unless you meet other requirements.
Today we’ll profile another Southern California-based mortgage lender, Ladera Lending, which recently landed in LendingTree’s top-10 list for customer satisfaction.
Despite being around for slightly longer than a decade, they managed to fund nearly a billion in home loans last year.
And they accomplished this feat while only working in about a dozen states, which is all the more impressive.
Their past customers seem to love them if their reviews are any indication, so let’s learn more.
Ladera Lending Quick Facts
Direct-to-consumer mortgage lender that offers home purchase and refinance loans
Founded in 2007, headquartered in Ladera Ranch, CA
Licensed to do business in 14 states
Funded roughly $800 million in home loans last year
About half a billion came from home state of California
Specialize in mortgage refinances for existing homeowners
Ladera Lending is a direct-to-consumer mortgage lender that offers home purchase loans and refinance loans.
The name comes from the city in which they do business, Ladera Ranch, CA, which is located in Orange County near Laguna Niguel.
For the record, the word “ladera” means hillside in Spanish.
In case you weren’t aware, Orange County is a mortgage stronghold and home to many other large mortgage lenders, including New American Funding and Owning.
Anyway, Ladera Ranch is decidedly a refinance lender, seeing that about 95% of their total volume came from mortgage refinances as opposed to home purchase loans.
As such, they might be a good pick for existing homeowners as opposed to those still renting.
At the moment, they’re licensed to do business in just 14 states, including: AZ, CA, CO, FL, MD, MA, NJ, NV, NC, OR, TN, TX, WA, and WY.
How to Apply for a Home Loan with Ladera Lending
You can apply directly from their website without human assistance
Their digital mortgage loan experience is powered by Ellie Mae
Allows you to eSign disclosures, scan/upload documents, and link financial accounts
Homeowners can check loan status 24/7 via the borrower portal and get real-time updates
You can apply for a home loan directly from the Ladera Lending website by clicking on “Apply.”
That will take you to their digital mortgage application powered by Ellie Mae, which allows you to complete many tasks electronically, like eSigning disclosures and linking bank accounts.
They’ll ask if you’re currently working with a loan officer – if yes, they’ll provide a drop-down list, if no, you’ll simply move on and one will be assigned to you.
To that end, they have a loan officer directory on their website if you’d like to hand-select someone based on customer reviews or a referral. It might be a good idea.
At the moment, Ladera seems to have about 75 loan officers working for them.
Anyway, once your loan is submitted, you’ll be able to check loan status and get real-time updates by logging into the loan portal 24/7.
You can also get in touch with your lending team at any point if you have questions or need assistance.
Because they’re paired up with Ellie Mae, a top fintech company, the home loan experience should be relatively easy to complete.
They also come highly-rated, so their loan officers should also be helpful, well-versed in mortgages, and make the process very customer friendly.
Loan Programs Offered by Ladera Lending
Home purchase loans
Home renovation loans
Refinance loans: rate and term and cash out
Conforming loans backed by Fannie Mae and Freddie Mac
Jumbo and super jumbo home loans
FHA, USDA, and VA loans
Reverse mortgages
Fixed-rate and adjustable-rate options with 5 to 30 year terms available
Ladera Lending keeps their product offerings pretty basic, though they should have enough to satisfy most homeowners out there.
As noted, they offer both home purchase loans and refinance loans, with the latter being their specialty.
That means you can get a rate and term refinance, a cash out refinance, or even a streamline refinance.
They lend on all property types, including single-family homes, condos/townhomes, and multi-unit properties from 1-4 units, along with vacation homes and investment properties.
Like everyone else, they offer conventional, conforming home loans backed by Fannie Mae and Freddie Mac.
Additionally, they offer jumbo home loans that exceed the conforming limit, which makes sense since they’re located in pricey Southern California.
They actually offer so-called super jumbos, with loan amounts as high as $2.5 million.
In addition, you can get a home renovation loan such as a FHA 203k loan or a Fannie Mae HomeStyle loan.
Lastly, they offer reverse mortgages via the FHA’s HECM loan program for seniors aged 62 and older.
In terms of available loan programs, you can get a fixed-rate mortgage such as a 30-year or 15-year fixed, or an adjustable-rate mortgage, including 5/1 and 7/1 ARMs.
Ladera Lending Mortgage Rates
While they have a section on their website titled “today’s rates,” it merely directs you to an online lead form that you must fill out to get a call back from a loan officer.
At that point, someone will contact you to discuss loan options and pricing. This is a slight negative since it’s nice to see mortgage rates just to get an idea of pricing.
But it doesn’t mean their rates are good or bad – you’ll just need to speak to someone first to find out.
My assumption is they are quite competitive since they do so many refinance loans, which are very interest rate-sensitive.
Additionally, past customers have indicated that their rates and fees were low in their many online reviews.
With regard to lender fees, that’s also a bit of a question mark since they don’t list them on their website.
So we don’t know if they charge an application fee, loan origination fee, etc.
Be sure to ask when you inquire about mortgage rates to get the full picture, which collectively makes up the mortgage APR.
Ladera Lending Reviews
Ladera Lending has a solid 4.9-star rating out of 5 on LendingTree from more than 3,300 customer reviews.
They also have a 99% recommend rating and made it into the top-10 for customer satisfaction in the third quarter of 2020.
Both interest rates and fees/closing costs were deemed excellent on the review site, along with responsiveness and customer service.
On Google, it’s the same story – a 4.9-star rating based on more than 1,000 customer reviews, which is obviously quite excellent.
Once again, a 4.9-star rating on SocialSurvey from more than 4,300 reviews, which tells us they are uber consistent across several ratings sites.
At Zillow, they have a slightly lower 4.77-star rating from more than 260 reviews, which is still great. Lots of those reviews indicated that interest rates and closing costs were lower than expected.
Lastly, they have an ‘A+’ Better Business Bureau rating and have been an accredited company since 2012.
Somewhat shockingly, Ladera also boasts a 4.86/5 BBB rating based on customer reviews, which is pretty unheard of. Usually, customers only go to the BBB website to complain.
In summary, Ladera Lending seems to be making their customers very happy on a consistent basis, which is very impressive given the number of reviews out there.
Assuming their mortgage rates and closing costs are also low, they could be a good choice for an existing homeowner looking to refinance their mortgage.
Ladera Lending Pros and Cons
The Pros
Can apply for a mortgage directly from their website without a human
Offer a digital mortgage loan experience powered by Ellie Mae
Plenty of loan programs to choose from including jumbo loans and reverse mortgages
Excellent customer reviews across all ratings websites
A+ BBB rating, accredited business
Free mortgage calculators
The Cons
Only licensed to do business in a handful of states
Movement Mortgage is the latest of many mortgage lenders to offer a zero down option for prospective home buyers, referred to as the Mortgage Assistance Program, or MAP.
Before we get into the details of that loan program, let’s learn more about this growing mortgage company, which refers to itself as “a national top 10 retail mortgage lender.”
Who Is Movement Mortgage?
A national nonbank direct mortgage lender
That is licensed in 49 states
With nearly 800 offices nationwide
And a former NFL player is their CEO
If you haven’t heard of Movement Mortgage, know that they’re a rapidly growing direct mortgage lender based out of Fort Mill, South Carolina, founded back in 2008.
They’re a nonbank, meaning they don’t collect deposits and pay interest like other big banks such as Wells Fargo or Chase.
However, the company recently purchased Danville, Virginia-based First State Bank, which they’ve morphed into Movement Bank.
So it’s possible that the ultimate game plan is to make Movement Mortgage a depository institution going forward.
What’s interesting about the company is they were founded during the housing crisis, basically right around the time home prices had begun to fall after peaking a year or two earlier.
Their CEO is Casey Crawford, who played tight end for the Carolina Panthers and Tampa Bay Buccaneers, and won a Super Bowl with the latter. So they’ve got a certain cachet.
They do about $13 billion in annual home loan volume and are now licensed in 49 states (the latest being Hawaii) with some 3,500 employees scattered across 650 branches.
Movement Mortgage recently expanded in the Pacific Northwest and Mountain West thanks to their acquisition of the retail lending operations of Eagle Home Mortgage, LLC.
The company will gain an additional 230 employees and 35 branches via the move, which should push the total number of offices close to 700 nationwide.
What Does Movement Mortgage Offer?
Fannie, Freddie, FHA, USDA, and VA loans
High-balance and jumbo loans
Renovation loans
Reverse mortgages
Zero down mortgages
Aside from the typical home loan offerings, including conforming loans and government loans like FHA, USDA, and VA loans, Movement recently launched a zero down loan option called MAP.
Like others before it, the MAP will rely on a 3% grant that doesn’t need to be paid back by the borrower.
It combines that 3% grant with a 97% LTV mortgage backed by Fannie Mae or Freddie Mac, presumably. I just know it’s conventional financing, not FHA or some other government stuff.
This is similar to the Quicken Loans 1% down option, though instead of a 2% grant, you get 3%. Seeing that you don’t need to pay it back, you might as well get the full 3%, eh?
Three other big banks offering zero down financing include BBVA Compass with their HOME loan program, BancorpSouth with their Right@Home loan program, and Fifth Third with their Down Payment Assistance Program.
What’s becoming increasingly clear is that lenders are accommodating those with little or nothing set aside for down payment, a top concern for would-be buyers.
It’s a little frightening given home prices have ascended back to old heights, and in some cases, new heights. But at least underwriting is, well, actually being conducted these days.
MAP Available to First-Time Buyers
Key requirement is being a first-time home buyer
This generally means no ownership in the past 3 years
May allow credit scores as low as 620
3% down payment comes in the form of a grant
As you might expect, there are some rules associated with Movement Mortgage’s MAP, perhaps the most important that you be a first-time home buyer. That tends to mean no ownership in the past three years. Sorry investors.
Additionally, Movement notes that you need to meet certain income and asset criteria, which are apparently based on need and median limits in the area you wish to purchase.
Other than that, it appears to be pretty straightforward and probably based on Fannie and Freddie’s flexible 97% LTV underwriting guidelines, which may allow credit scores as low as 620.
As far as property type, you’re likely looking at single-unit principal residences only, including condos.
And as noted, you don’t need a down payment thanks to that 3% grant. Movement Mortgage says it doesn’t need to be repaid, nor does it result in a second lien or promissory note.
But I assume there is some requirement to stay in the property (or at least the mortgage) for some reasonable period of time to prevent flipping.
It’s looks like you’ll also be on the hook for mortgage insurance, because as I’ve said before, if you don’t put down 20%, you’re paying PMI.
In terms of mortgage rates, you might get stuck with a higher-than-market rate because of the flexible financing terms, though it could still be quite competitive. The only way to know for sure is to comparison shop.
There’s also mention of benefiting from homeownership education, so it sounds like you might need to take a course to qualify for the zero down financing as well. Of course, there’s no harm in educating yourself on homeownership.
The program also comes with voluntary job-loss insurance coverage, assuming you aren’t self-employed.
This benefit covers as many as six monthly mortgage payments due to involuntary unemployment. The maximum benefit is $1,500 per month, or $9,000 total over the coverage period.
Movement Mortgage is licensed in 49 states, meaning there’s a good chance you’ll be able to work with them.
Aside from this new program, they also offer VA, FHA, USDA, home equity, and renovation loans.
Founded in 2008, right after/during the housing crisis, they mustered $7.83 billion in home loan volume in 2015, which is roughly one in every 75 home purchases in the United States.
Their goal is to underwrite and process 70% of their loans in just seven business days with the help of their digital EasyApp experience.
Movement Mortgage MAP Guidelines
100% financing
3% grant provides you with instant equity
doesn’t need to be paid back
conventional financing (likely backed by Fannie or Freddie)
must be a first-time buyer
must be owner-occupied residence
home buyer education may be required
optional job-loss mortgage protection coverage available
Final Thoughts on Movement Mortgage
Seem to be a young company with fresh ideas
Plenty of technology including the EasyApp and EasySign
Their CEO is big on customers paying off their loans
Instead of accumulating more debt
While they’re a relatively new player in the mortgage space, they seem to be appealing to the youth with their technology and energy.
Heck, their CEO Casey Crawford just turned 40, so it’s clear they’re going to do well with Millennials and Generation Z.
Their EasyApp is designed to let borrowers complete their loan application on just about any device, and they’ve got the technology in place to link bank accounts and other financials, similar to Rocket Mortgage.
EasySign gives Movement Mortgage customers the ability to electronically sign “most loan documents” before their scheduled closing date from home on the device of their choosing.
This, they say, allows for more time and transparency so borrowers don’t feel rushed at the closing table. They can review documents on their own timeline and ask questions if they feel unsure about anything.
Crawford also recently claimed that they take interest in borrowers paying off their home loans, instead of taking on more debt.
Apparently they discourage folks from refinancing from a 30-year loan to another 30-year loan, which is known as resetting the clock. But they also advertise cash out refis on their website, so take it how you want.
They’ve already done a lot in a short amount of time, and Movement Mortgage says it’s on pace to finance one in 10 homes purchases nationwide by the year 2025, so it’s clear they have lofty ambitions and expect to be a household name.
Opening a bank account online has not only become an effortless task but also a smart move towards managing your finances with ease. This guide will help you understand the benefits, requirements, and steps to transition your banking experience into the digital realm.
This will give you control and accessibility like never before. Embrace the future of banking today and discover how opening a bank account online can be a game-changer for your financial journey.
Understand Your Banking Needs
Determining your banking needs is a crucial first step in choosing the right account. Are you looking for a secure place to deposit your paycheck, withdraw cash, and manage your bills? A checking account could be your answer. It’s an excellent tool for everyday transactions, providing features like check writing, debit card access, and often, the ability to set up direct deposits.
Alternatively, if you have a financial goal in mind, such as saving for a down payment or creating an emergency fund, a savings account could be more suitable. These accounts typically offer higher interest rates compared to checking accounts, allowing your money to grow over time.
It’s worth noting that many people maintain both checking and savings accounts. The checking account serves as a hub for daily transactions, while the savings account functions as a reservoir for longer-term savings and investment goals. Your specific mix will depend on your personal financial needs and goals.
Choosing the Right Bank
Finding the right bank depends on your individual needs and preferences. There are three main types of banks to consider: traditional banks, credit unions, and online banks.
Traditional banks offer a wide array of services like various types of accounts, credit cards, and loans. They are great if you prefer having in-person access to services and a large network of ATMs.
Credit unions are member-owned and often excel in customer service. They generally offer better interest rates on savings accounts but may have less online and physical accessibility than traditional banks.
Online banks operate purely online, which often allows them to offer lower fees and higher interest rates. They’re a good choice if you’re comfortable doing all your banking digitally.
No matter which type of bank you choose, make sure it’s FDIC insured to protect your money. Also, consider the bank’s fees, such as monthly service and ATM fees, as they can add up over time. A bank with fewer fees or options to waive them could save you money.
Requirements for Opening a Bank Account Online
Once you’ve decided on your banking needs and the financial institution, it’s time to gather the necessary information to open your bank account online.
Most financial institutions will require:
Personal Information: Your legal name, date of birth, and Social Security number.
Contact Information: A valid mailing address and phone number. Banks typically require these to verify your identity and as part of their communication and security protocols.
Identification: A valid form of identification such as a driver’s license, state ID, or passport. You may need to provide the ID number and expiration date.
Initial Deposit: Some banks may require an initial deposit to open the account. You can usually fund this by transferring money from an existing account or using a credit or debit card.
Before starting, it’s helpful to check the specific requirements of your chosen bank, as requirements may vary from one financial institution to another.
Step-by-Step Guide on How to Open a Bank Account Online
Taking your banking experience online might seem intimidating initially. However, the process is typically straightforward, taking just a few minutes. Follow this step-by-step guide to set up your bank account online.
Visit the bank’s website: Begin by visiting the official website of your chosen bank or credit union. Look for the “Open an Account” or “Apply Now” option, typically found in the main navigation or home page.
Fill out the application form: The bank will prompt you to fill out an application form requiring your personal information. This includes your full name, mailing address, and Social Security number. You may also need to provide a valid form of identification and employment information.
Verify your identity: As part of the process, you’ll be asked to verify your identity. This could involve answering security questions based on your credit history or providing a valid ID. This step is crucial to protect against identity theft and fraud.
Fund your account: Most banks require an initial deposit when opening a new account. You can fund your account via a transfer from an existing bank account, a credit or debit card, or even a check. The required deposit varies from bank to bank, with some online banks allowing you to open an account with no initial deposit.
Confirm and finalize your account setup: Once you’ve completed these steps, you’ll receive a confirmation email or message from the bank. This message usually contains instructions on how to set up online banking, including setting up your username and password.
What to Do After Opening Your Account
With your bank account online set up, it’s vital to get acquainted with all its features and maximize them for your convenience and financial growth.
Set up direct deposit: Direct deposit is a crucial feature to set up as soon as your account is active. It allows your paycheck to be automatically deposited into your account, saving you from manual deposits and giving you quicker access to your money.
Learn to use online banking features:Familiarize yourself with key online banking features. Bill pay, for instance, can automate your monthly payments, ensuring timely transactions without manual intervention. Mobile check deposit lets you deposit checks without the need to visit a bank branch, and the money transfer feature enables seamless transfer of funds between accounts or to friends and family, making your banking experience both quick and hassle-free.
Regularly review your account statements: Regular monitoring of your account statements is a good financial habit. It helps track your spending, review any account fees, and promptly detect any suspicious activity or discrepancies. This practice keeps you aware of your financial status and ensures the security of your account.
The Importance of Regularly Reviewing Your Banking Needs
As life unfolds and your circumstances evolve, so too do your banking needs. Major life events – a career shift, marriage, welcoming a child, or even retirement, could alter your financial landscape significantly.
Perhaps a job change comes with a pay increase, necessitating a better savings strategy, or marriage might call for a joint account. A new child could lead you to start a college savings account. These changes underscore the importance of regularly reassessing your banking arrangements.
Every few years, or at the occurrence of significant life events, it’s beneficial to review your banking needs. This regular review ensures your financial arrangements align with your life’s dynamics, ensuring your money is working for you at every stage.
Bottom Line
Opening a savings or checking account online is an easy and efficient process, offering you the freedom to manage your finances at your fingertips. But remember, the process doesn’t stop with opening an account.
Make sure to fully utilize the features of your online account, keep a close eye on your statements, and adjust your banking needs as your life changes. Stay informed and proactive in your approach to banking – this way, you ensure that your online bank account serves you effectively in every phase of your financial journey.
Frequently Asked Questions
Can I open a bank account online without a deposit?
Yes, certain banks allow you to open an account with no opening deposit. However, they may require you to fund the account within a specific time frame to keep it active.
What should I do if I don’t have a Social Security number?
If you’re an international resident without a Social Security number, you might still open a bank account using an Individual Taxpayer Identification Number (ITIN), passport, or other forms of identification. It’s advisable to contact the bank directly for their specific requirements.
How old do I need to be to open a bank account online?
Typically, the minimum age to open a bank account online is 18. For those under 18, many banks offer the option of joint accounts with a parent or guardian, or specific accounts designed for minors.
Can I open multiple bank accounts online?
Yes, you can open multiple bank accounts online, including a mix of checking and savings accounts, depending on your financial needs. It’s important to consider potential monthly fees and the ease of managing multiple accounts.
Is it safe to open a bank account online?
Opening a bank account online is generally safe as long as you’re using a secure network and are applying through the official website of a reputable bank or credit union. Always look for indications of security, like the “https” at the beginning of the web address.
What should I do if I face issues while opening a bank account online?
If you encounter any issues while opening a bank account online, the best course of action is to contact the bank’s customer service for assistance. They can guide you through the process or resolve any technical glitches you might be facing.
Pets are like your children, and just as you would ensure your little one’s oral health, you can’t ignore your pet’s dental health either.
Admittedly, dental issues can be costly for pets as they are for humans. That’s one crucial reason for getting a pet insurance plan covering every dental illness or accident.
So, if you’re planning to get the best pet insurance for dogs and cats, welcome to the perfect guide for all pet owners. Below we mention all you must know about pet dental insurance when buying a pet insurance policy.
Though, before we delve deeper, let’s first discuss the vital million-dollar question: whether your pet insurance coverage can include dental care or not.
What’s Ahead:
Can pet insurance plans cover dental care?
Typically, pet insurance companies don’t consider coverage for dental illnesses or a dental disease as a standard clause. Therefore, if you want accident and illness coverage, you have to buy the special pet insurance explicitly designed for dental coverage.
Or, you can do your research and contact a pet insurance company offering dental coverage as a preliminary to all pet owners. Pet insurance providers like Healthy Paws understand the significance of dental cleanings and how painful gum disease can be if not prevented- or treated- at the right time.
Whatever insurance plan you opt for, you need to check the kind of dental coverage. For instance, some pet dental insurance plans may include dental injuries, while some like Health Paws can cover extensive treatments like tooth extractions.
In addition, one pet insurance plan may cover the dental issues of pets under three years of age. In contrast, other pet insurance plans might cover dental treatment only if your pet received its annual dental exam within the previous 13 months. Therefore, you must check all these clauses before getting an insurance plan covering your pet’s dental hygiene.
We’re not exaggerating when we claim that it’s always safer and more rewarding to look for your pet’s dental insurance coverage. If you need more convincing, let’s head on to understand the benefits of buying coverage for pet dental care.
Why get dental insurance for your pet?
One of the top benefits of having pet health insurance with dental coverage is safety. You can have a peaceful state of mind because you can stay ready for dental issues in dogs like gingivitis and periodontal disease. Additionally, you never know when your pet might require a tooth extraction or treatment for periodontal disease.
Furthermore, cats’ dental accident and illness coverage include preventive dental care for deciduous teeth and routine teeth cleanings. These covered expenses ensure your adorable pet cat ages healthily.
Thus, having insurance to cover gum disease and your pet’s overall oral health is blissfully assuring and pocket-friendly. That’s vital, considering even preventive care and tooth cleaning can put quite a dent in your bank accounts otherwise.
What does pet dental coverage include?
Dental insurance coverage can vary, primarily depending on what American pet insurance company you get the insurance policy from. Usually, there are two categories for a pet’s dental health insurance: dental accidents and illnesses.
While some insurance firms may offer protection against accidents, others may cover dental illness only. And if you contact to get an insurance policy including both dental services, you can expect reimbursements for dental treatments for:
Gum disease
Root canals
Crowns
Damaged teeth
Gingivitis
Stomatitis
Tooth extractions
Dental procedures your pet insurance may not cover
While pet insurance for dental health can be quite comprehensive, insurance providers like Lemonade and other credible firms often don’t cover every dental disease or problem. Some general exclusions include:
Pre-existing conditions occurring before your pet insurance plan even started
Orthodontic, cosmetic, or endodontic dental treatments like fillings and implants
Regular treatments like routine teeth cleanings and routine dental care
Here’s a disclaimer:
Pet owners often consider getting pet oral care insurance to get reimbursements for tasks like routine dental cleanings. Some individuals even aim to get compensated for their pet’s dental illness with pre-existing conditions.
However, you must understand that pet insurance cover primarily includes injury and illness coverage to save you from expensive treatments. But routine dental cleaning is your responsibility as a pet owner.
While periodontal disease is unexpected and can happen for several reasons, cosmetic surgeries are a luxury, and pet teeth cleaning is your job. Ignoring teeth cleaning shows a lack of responsibility.
Poor dental health can lead to painful dental illnesses like gum diseases and eventually any periodontal disease, damaging your pet’s tissues and bones.
Because now, it’s not a matter of regular dental cleaning but gum issues, some pet owners think they can get reimbursed for this dental disease. But it’s not always the case. Insurance providers like Lemonade assess your pet’s dental claims and evaluate past treatments and health conditions before accepting and compensating for your claims.
Tips for managing your pet’s dental problems like a pro
Although having pet dental care insurance means reimbursement for costly dental disease, saving you from piling healthcare debts.
It’s still preferable to keep the costs low by incorporating effective medical care for your pets.
The tips below will help you manage your pet’s dental problems like a pro and keep their smile healthy and shining.
1. Feed them a dental diet
There are specially formulated foods that can help reduce tartar and plaque buildup on your pet’s teeth. These diets usually have ingredients that are abrasive enough to scrub away at the build-up while also containing ingredients that fight bacteria and support overall dental health.
2. Schedule regular checkups and cleanings
Regular checkups with your vet are necessary to keep an eye on your pet’s dental health. Your vet will be able to spot any developing problems, such as tartar buildup or gum inflammation, early on so that they can be treated promptly before they become more severe.
3. Brush their teeth at home
Brushing your pet’s teeth is one of the most effective ways to keep their smile healthy and clean. You can purchase toothpaste specifically formulated for pets, or you can use a small amount of human toothpaste on your finger to gently rub their teeth and gums.
4. Give them dental treats
There are a variety of dental treats available that can help reduce tartar buildup and promote overall dental health. These treats usually have ingredients that fight bacteria and support healthy gums.
5. Use water additives
Water additives are designed to help reduce plaque and tartar buildup on your pet’s teeth. Simply add the recommended amount to their water bowl and let them drink as usual.
Proceeding with your pet’s dental claims against accidents and illnesses
Buying your pet’s oral insurance policy isn’t a smooth sail. Problems arise when you don’t skim through the insurance coverage and face hassles at the time of claim settlement. Therefore, as you sign up for the insurance, be sure to ask the firm about three essential questions:
if your policy covers both dental injury and illness or any one of them
if you will have to pay more when making a claim
if there are additional limits apart from the veterinary fees
That helps you assess when and if applying for a claim is beneficial and when you’re more likely to get reimbursed.
Usually, there aren’t special instructions for filing an oral health insurance claim. But some policies may ask your pet to fulfill minimum age or dental examination requirements. Therefore, it’s better to clarify these potential limitations beforehand.
Pet insurance claims are almost like human health insurance claims. You can pay for the vet bills and submit the claim form with the attached relevant documents. And then receive the reimbursed amount for covered expenses by your insurance provider.
Or, you can check if your insurance provider pays to vets directly once your claim is approved. But for that, you’ll first need to check if the vets accept this form of payment or not.
Summary
Managing your pet’s oral routine is as important as ensuring its physical health. Of course, brushing your pet’s teeth every day doesn’t mean complete protection from dental illnesses or untimely accidents. And if you fear the high vet bills for such treatments, having pet insurance with dental coverage is even more vital for you.
Hopefully, the information mentioned above managed to clarify your concerns regarding pet insurance and dental coverage. What are you waiting for now? Research the dental policies of pet insurance companies and choose the one that offers coverage for both- oral health illnesses and accidents.
The gig economy was just beginning to blossom pre-pandemic. Between 2010 and 2020, the number of gig workers or side hustlers increased by 15%. Unlike many aspects of life, which stagnated during the pandemic, freelancing only grew. Statista reported that 73.3 million people work as freelancers in the U.S. right now, an increase from 57.3 million pre-pandemic.
Freelancing has tremendous benefits for many people. Freelancing or gig work can provide:
Flexibility
A better work-life balance
Increased income potential
But it can come with some financial complications, too.
As a freelancer, you’ll need to manage cash flow so that you’ll have money in your account to pay your bills. You’ll be responsible for paying your own taxes. And, with that in mind, you’ll want to track expenses carefully so that you can deduct the costs of running your freelance business from your bottom line.
That’s where having a business bank account can come in handy.
Why You Need a Bank Account If You Have a Side Hustle
According to tax laws, you don’t have to have a business bank account to run a side hustle or a freelance business. You can file your taxes using your Social Security number and receive a 1099 form as a sole proprietor.
But as your business grows, you may want to incorporate under a tax ID number. You may choose to register as a corporation like an S-Corp or, more commonly, a limited liability corporation or LLC. This can get confusing, so it’s important to speak to a tax account before you take this step.
If you incorporate your business, you’ll need a business checking account to keep your personal finances separate from your business expenses. You would pay yourself a salary out of your business account and use your personal bank account to pay for your daily living expenses, entertainment, and anything that isn’t considered a business expense.
Benefits of Business Accounts
Most small business owners, freelancers and side hustlers prefer to open a business account even if they aren’t incorporated. Having a dedicated business checking account makes it easier to track your business income and expenses, which makes filing taxes – and making quarterly estimated tax payments – easier. If you ever get audited, you’ll have a clear record of your personal and business finances.
Plus, if you do any sales and marketing for your freelance business, your business debit card can often pique people’s interest. You’d be surprised how having a debit card with your business name on it can help you generate leads in odd places, whether you’re at your favorite bar or paying for groceries.
If you’re ready to open a separate business account, it’s important to find one that will meet your needs.
Freelancer vs. Side Hustler vs. Entrepreneur
Before you choose a business account, you may be wondering about the differences between entrepreneurs, freelancers, and side hustlers. Which category do you fit in?
These are all loose terms to describe anyone who owns their own business or is self-employed. Self-employed is a tax designation, which means you are a 1099 contractor for other companies. This term would apply to most freelancers and side hustlers.
On the other hand, if you start your own business, you might consider yourself an entrepreneur. The dictionary defines an entrepreneur as someone who starts a business and is willing to take a financial risk in hopes of great success.
A freelancer may also take financial risks, including leaving a steady paying job. In a lot of cases, whether you describe yourself as an entrepreneur, small business owner, freelancer or side hustler is up to you.
Compare the Best Freelancer Checking Accounts
In most cases, business owners, freelancers and side hustlers can all benefit from a good business bank account. Read on as we compare the best business checking accounts for freelancers, gig workers, and entrepreneurs.
1. Lili Bank: Overall Best Bank for Freelancers
Lili calls itself “the one-stop shop for all your small business financial needs.” An online financial services company that provides business banking, accounting for freelancers, invoicing, and tax support, Lili is backed by Choice Financial Group Inc.
As a US-based bank, Choice is a member FDIC, which means your funds deposited in Lili are protected by the federal government up to $250,000 per account.
What sets Lili apart as one of the best bank accounts for freelancers?
In addition to all the other services it offers to business owners, Lili has no minimum balance requirements, no monthly fees for basic checking, and a network of 38,000+ fee-free ATMs nationwide. You can also open a business savings account and earn 1.50% APY at Lili.
Lili’s basic business checking account has no monthly fee, expense categorization for your purchases, and the ability to generate quarterly expense reports.
Alternatively, for $9 per month, you can earn 1.5% on savings, get a Visa business debit card with cashback rewards, overdraft protection up to $200 and tax, invoicing software, and accounting support.
Lili integrates with third-party services that gig workers may use, including Etsy, Shopify, Venmo, QuickBooks, and your PayPal business account.
When you compare the prices of other invoicing and online accounting services, you may find that Lili offers tremendous value for the money as one of the overall best banks for gig workers you can find.
Bluevine: Best for Business Interest Checking Account
Like Lili, Bluevine is a financial technology company. It is backed by Coastal Community Bank, Member FDIC to protect your deposits. The Bluevine business checking account offers 2.0% interest, which sets it apart from competitors.
To take advantage of the interest, you’ll need to either spend $500 per month with your Bluevine Business Debit Mastercard or receive $2,500 per month in customer payments to your Bluevine business checking account.
There are no monthly fees or minimum balance requirements and you can make unlimited transactions with no fees. Like Lili, Bluevine also offers other services for business owners.
If you are looking for a business interest checking account with value-added services, consider Bluevine. Your account integrates easily with QuickBooks, with no fees involved. Plus, you can set up sub-accounts to easily manage your money, add authorized users, and pay bills via ACH or wire transfer from your Bluevine account.
While many credit providers offer business credit cards, Bluevine is one of only a few business checking accounts that offers a business line of credit. You may qualify for a credit line of up to $250,000, with a rate as low as 6.2% interest. This interest rate is much lower than the national average of 20.46% for business credit cards right now, as reported by The Balance. Plus, you could get approved in as fast as five minutes, according to the Bluevine website.
For entrepreneurs seeking to purchase tools or resources, or freelancers in need of business equipment, Bluevine’s line of credit could provide you with the financial security you need to grow. Take note that you’ll need a credit score of 625 or more to qualify and $40,000 in monthly revenue. This is probably not a service for a gig worker, but for a seasoned entrepreneur.
Even so, it’s never too early to get started with a business checking account, especially one with no monthly fees.
Amex: Best for Debit Card Rewards and Bonus Offer
American Express is a renowned name in business and consumer rewards credit cards. But you might not be aware that the company also offers a business checking account with 1.30% APY on balances up to $500,000.
American Express also has no monthly maintenance fees, no fees on domestic ACH payments, and no fees at MoneyPass ATMs. The American Express Business Blueprint app makes it easy to manage your account.
Amex stays true to its credit card rewards roots with a rewards business debit card. Earn 1 Membership Reward point for every $2 on eligible purchases. You can combine points earned with Membership Rewards points accrued with other Amex cards, and use those points for travel, gift cards, or cash back. You can also convert those points into cash deposits directly into your new business checking account.
Amex’s bonus offer stands out to us. Earn 30,000 Membership Rewards points after you deposit $5,000 or more within the first 30 days of account opening, maintain that balance for the next 60 days, and make five or more qualifying transactions within those first 60 days.
NBKC Business Checking: Best for No Fees
If finding a business bank account with no fees is most important to you, a nbkc Business Checking account might fit the bill. The bank offers unlimited transactions with no fee, no minimum balance requirements, no monthly fees, and no opening deposit requirements either. You can also have out-of-network atm fees reimbursed for up to $12 per month.
If you are a freelancer just getting started or just looking to supplement your full-time income with a side hustle, you’ll find nbkc bank a low-cost and convenient option among free business checking accounts.
NBKC lacks some of the bells and whistles of the top choices on our list. You won’t get integrations with common business software or invoicing and accounting support. But a nbkc business checking account is free with your personal account and provides an easy way to keep your business and personal funds separate.
Novo: Best for Payment and P2P Money Transfer App Integration
Novo is another choice with no monthly maintenance fee, no monthly fee, free ACH transfers, and no minimum balance needed. Like many of the business bank accounts on this list, Novo is a financial technology company. It’s backed by Middlesex Savings bank, a Member FDIC, which means your money is protected up to $250,000 per account.
Novo is the best for business owners looking for an easy way to process payments or transfer funds. You’ll get free ACH transfers from another checking or savings account and refunds on all out-of-network ATM fees.
Novo integrates with many P2P payment apps, including Square, Shopify, and Stripe, as well as Etsy, eBay, Amazon and more.
When you use Novo Boost, you can get paid 95% faster through Stripe, or two business days before the funds would ordinarily appear in your account.
Plus, it’s quick and easy to open an account online, with approval as fast as 10 minutes – rather than days with some other online bank accounts.
Axos Bank: Best for New or Scaling Businesses
Many freelancers don’t think about opening a business account until they have incorporated their company to make that transition from self-employed to entrepreneur. If this sounds like you, Axos Bank could have the best bank accounts for you. The online bank is offering business owners who incorporated after June 2020 an extra $200 in their new business bank account.
If you aren’t newly incorporated, you can earn a $100 bonus.
Like many of the best business accounts on this list, Axos has no monthly fee, no minimum monthly average balance to hold, ATM fee reimbursements for all domestic transactions, and no minimum opening deposit. The bank accepts cash deposits or you can transfer money from other checking accounts via ACH.
Unlike many online banks, Axos offers business owners a dedicated relationship manager to help point you to the products and services that are best for your growing business.
Chase Business Complete Banking: Best for Credit Card Processing
As the largest U.S. bank, with assets of $3.31 trillion, Chase is a traditional bank that offers all the convenience of online banks. This includes personalized service, stellar fraud protection, and a host of other features and benefits we’ve come to expect from any financial institution.
The Chase Business Complete Banking account is ideal for entrepreneurs, offering unlimited transactions and no monthly fee (if you meet certain requirements). These requirements are relatively easy to meet with a $2,000 minimum balance, $2,000 in purchases on your Chase Ink Business credit card, a link to a Chase Private Client Checking account, or $2,000 in deposits from QuickAccept or Chase eligible merchant services.
The best aspect of Chase Business Complete Banking is the ability to process credit card transactions and receive funds the same day through Chase QuickAccept. (Additional fees apply.)
You can open an account with no minimum deposit to get started.
Wave Money Business Banking: Best for Free Business Banking
Wave Money integrates a free checking account with easy bookkeeping for freelancers and solopreneurs. Wave is best for those who want to improve cash flow with instant pay and want bookkeeping tools to make tax prep easier.
Wave has no monthly fee or transaction fees, so you keep more of what you earn. You can use the mobile check deposit feature for convenience, and make ACH transfers easily. There are no transaction limits with Wave, and you can also connect third party payment processors.
Wave is another fintech company, with banking provided by Community Federal Savings Bank, Member FDIC. That means your funds are insured for up to $250,000 per account.
TIAA Bank: Best for Business Investments
Besides checking accounts, TIAA Bank offers a variety of banking products for entrepreneurs and gig workers that sets it apart.
If you’re considering business savings accounts, TIAA offers CDs and money market accounts to earn interest at a rate higher than you may get with another account. Currently, TIAA’s one-year business CD offers an APY of 3.75%.
TIAA’s checking accounts offer easy online banking and mobile check deposit, along with personalized service from a business solutions specialist.
LendingClub Bank Tailored Checking: Best for Earning Checking Account Rewards
The LendingClub Bank tailored checking account for freelancers is one of the few banks on our list where you can earn interest on your checking balance, plus 1% cash back rewards when you use your debit card.
Account holders earn 1.5% APY on balances up to $100,000 and 0.10% APY on the portion of your balance that exceeds $100,000.
LendingClub Bank reimburses fees if you use an out-of-network ATM. The bank also supports QuickBooks, Quicken and Mint for budgeting and bookkeeping. You can also send digital invoices and get paid directly to your LendingClub account, making LendingClub Bank Tailored Checking one of the more robust and affordable online banks for freelancers.
Just make sure to maintain an average daily balance of at least $500 to have the monthly fee waived.
How to Choose the Best Bank Account for Your Business
When you’re evaluating business bank accounts, you’ll want to consider your needs and the features that are most important to you.
It should go without saying that you want an account with no monthly fees or no monthly fees. Unless you’re an established business owner, you may also want no minimum balance requirements. You don’t want to get saddled with fees if your business runs into cash flow problems or you have a down month.
If you run a high-volume business, look for a bank account with no transaction limits, no in-network ATM fees, and unlimited ATM fee rebates.
Need a way to manage contracts, collect invoices, and help with taxes?
Your business bank can represent much more than just a place to deposit cash and a means to pay your bills. Many of the best bank accounts on this list also offer freelancer invoicing, tax assistance, and ways to manage contracts.
Budgeting and Savings Features to Look For
When you’re a freelancer, it’s convenient to have an easy way to track your expenses and budget for not just expected costs, but surprise opportunities or financial emergencies.
Just as you should have a personal bank account established with emergency savings, you want a business savings account. In fact, you may want multiple business savings accounts or the ability to divide money into various buckets for known costs – like taxes – and unexpected expenses, such as car repairs or a new phone.
Some budgeting and savings features are nice to have, such as an interest-earning checking account and cash back on debit card purchases.
Why We Chose Lili as the Best Business Bank Account
Lili graces the top of our list because the fintech company offers so many value-added services for entrepreneurs that it’s virtually a one-stop shop for freelancers. However, the other banks on our list for best business accounts have their own benefits you might want to consider.
Should You Use Different Banks for Personal and Business Finance?
If you already have a separate bank account for your personal finance, there is something to be said for opening a business account through the same bank. You may get extra perks and benefits or waived fees. Best of all, it’s easier to use one app to manage all your personal and business banking.
But if you opt for an online financial services company, instead, it is typically easy to transfer funds between accounts. Also, companies like Lili and Bluevine specialize exclusive in business accounts, which means they have services tailored specifically to your needs.
Bottom Line
A lot of factors go into choosing the best bank account for your business checking needs. Knowing your must-haves, nice-t0-haves, and those features that don’t really matter to you can help make the decision easier.
FAQs
What is a business bank account?
A business bank account is a dedicated account separate from your personal accounts that you use to deposit cash, checks, or other customer payments earned through your business. You should also use your business checking account to pay for business expenses.
Do You Need a Business Bank Account if You’re a Freelancer?
Freelancers are not required by law to have a separate business banking account. But if your business is incorporated as an S-corp, C-corp, or LLC, you are required to keep your business and personal accounts separate.
Should You Have a Separate Bank Account If You’re a Freelancer?
Even though it’s not required by law, it’s a good idea to have an account separate from your personal checking account to help you keep track of business income and expenses.
What Makes a Business Bank Account Ideal for Freelancers?
Business bank accounts often have many of the same features as some of the best personal bank accounts. That would include low or no minimum balance requirements, no monthly maintenance fee, no transaction fees, and no hidden fees.
You may also look for features like mobile check deposit, unlimited electronic deposits, and low wire transfer fees if you have a lot of customers, clients, or vendors outside the U.S.
Methodology: How We Select the Best Bank Accounts for Freelancers and Side Hustlers
We evaluated the best bank accounts for freelancers based on the ability to earn interest, monthly maintenance fees, minimum balance requirements, the ease of making cash deposits, customer service, and more.
Some banks are better for freelancers who don’t maintain a high balance or only have a few transactions per month. Entrepreneurs with fast-growing businesses looking to scale may prefer a business checking account with unlimited transactions and the ability to accept credit card payments through the same bank.
Some business owners may want to be able to integrate their Quickbooks accounting system through their bank.
We have banks on this list designed for small business owners, freelancers and side hustlers at every stage of business growth.
Today we’ll take a look at “Legacy Home Loans,” a mortgage lender whose purpose is to increase homeownership rates for African American communities across America.
They recently noted that Black homeownership is at an all-time low of 46% (per U.S. Census Bureau data), so they’re trying to change that by positioning themselves in states where the Black population is 25% or higher.
The company is helmed by President & CEO Ben Slayton, a 54-year mortgage industry veteran who also happens to be the first Black REALTOR® in America.
To reach their goal, Slayton has strategically opened branch offices in select areas of the country, including Atlanta, GA, Chicago, IL, Dallas, TX, Las Vegas, NV, Oakland, CA, and Columbia, SC.
Legacy Home Loans Fast Facts
Direct-to-consumer retail mortgage lender
Offer home purchase loans, refinances, and multifamily financing
Licensed in 40 states and the District of Columbia
Founded in 2018, headquartered in Las Vegas, Nevada
Nation’s largest Black-owned mortgage company
A dba of Panorama Mortgage Group LLC
Parent company funded roughly $1.5 billion in home loans last year
Most active in California, Nevada, and the South
Legacy Home Loans is a direct-to-consumer retail mortgage lender that operates as a dba of Panorama Mortgage Group LLC.
They refer to themselves as the nation’s largest Black-owned mortgage company, and want to play a key role in the National Association of Real Estate Brokers (NAREB)’s initiative to have two million new African-American homeowners by 2022.
As noted, their plan is to open new offices in predominantly Black cities nationwide, including Baltimore, Birmingham, Charlotte, Jacksonville, and St. Louis.
Other locations include Tucker, GA, Houston, TX, Sacramento, CA, and most recently Florence and Greenville, South Carolina.
They appear to be most active in California, Georgia, Illinois, Louisiana, Nevada, and South Carolina, but are licensed in 40 states and the District of Columbia.
It seems they aren’t yet operating in Alaska, Arkansas, Hawaii, Idaho, Massachusetts, Montana, New York, Rhode Island, Vermont, or West Virginia.
Legacy Home Loans is big on home purchase lending (which is their goal), as their parent company does about 90% of total volume in purchase transactions, with the remainder refinance loans.
Interestingly, Panorama Mortgage also operates the 100% Hispanic-owned Alterra Home Loans, so it’s clear they’re working to increase homeownership rates for all minority groups.
How to Apply with Legacy Home Loans
You can call them up, visit a local branch, or apply online
Their easy-to-use digital loan application is powered by Ellie Mae
It allows you to link bank accounts and income/employment information
eSign important disclosures and check loan status from a secure online portal
Legacy Home Loans is big on technology, seeing that their goal is to become one of the top five independent mortgage lenders in the country that also happens to be 100% minority-owned.
To that end, they work with Ellie Mae to provide their borrowers with a seamless, and perhaps more importantly, paperless home loan process.
You can get started in a variety of ways – either visit their website and fill out a lead form from their homepage, at which point a loan officer will get in touch.
Or check out their branch directory, click on an office nearest you, then select a loan officer to work with. If you go this route, you can apply online all by yourself without getting in touch with anyone first.
Alternatively, you can simply call them up on the phone, or visit a local branch if one is located near you.
It might be in your best interest (literally) to call and get a mortgage rate quote first, then if you like what you hear, proceed with the online application.
Speaking of, it’s powered by Ellie Mae, and allows you to link financial accounts, scan/upload documents, eSign disclosures, and manage your loan via a secure online borrower portal.
You can also check loan status via their free smartphone app called Pronto, which lets you manage your financial information, invite co-borrowers, and chat with your lender/real estate agent in one place.
Loan Programs Offered by Legacy Home Loans
Home purchase loans
Refinance loans: rate and term, cash out, and streamline
Renovation loans: FHA 203k and Fannie Mae HomeStyle Conforming loans
Jumbo loans
FHA loans
USDA loans
VA loans
ITIN loans
Non-conventional loans: foreign nationals and non-warrantable condos
Multifamily loans (5+ unit properties)
Legacy Home Loans offers a wide array of home loan programs, including purchase, refinance, and renovation loans such as the FHA 203k.
So whether you’re a first-time home buyer or an existing one, they should have a product for you.
All different types of loans are available, including conforming loans backed by Fannie/Freddie, and government-backed ones like FHA loans, USDA loans, and VA loans.
Additionally, you can take out an ITIN loan if you lack a social security number, and they also work with foreign nationals.
Lastly, they’ve got a multifamily loan department for investors interested in financing 5+ unit properties.
Legacy Home Loans Mortgage Rates
You won’t find mortgage rates posted on the Legacy Home Loans website.
Instead, you’ll either need to fill out their online lead form by clicking “Apply Now!” and wait for a call back, or simply make a phone call to a loan officer to discuss pricing.
It’s unclear where they stand pricing-wise relative to other lenders out there, so take the time to gather multiple quotes to ensure you’re getting a good deal.
The same goes for lender fees – since they’re not listed online, you’ll need to know what they charge to compare their quoted mortgage APR with other banks, lenders, and brokers.
Legacy Home Loans Reviews
They don’t have a ton of online reviews since they’re a newer company, but I was still able to track down several hundred.
On SocialSurvey, they’ve got a 4.79-star rating out of 5 from over 600 customer reviews, which is an excellent score.
You can also search local branches and loan officers by name to find Google and Yelp reviews if you’re trying to determine which individual to work with.
While not an accredited business, they currently have an ‘A-’ rating with the Better Business Bureau rating based on customer complaint history.
All in all, they could be a good choice for a first-time home buyer looking to support the company’s mission of increasing African American homeownership.
Just take the time to ensure they are competitive and easy to work with compared to other mortgage companies.
Legacy Home Loans Pros and Cons
The Good
Can apply for a mortgage from any device without assistance
Digital mortgage application and loan portal powered by Ellie Mae
Lots of loan programs to choose from including multifamlly
Excellent customer reviews from past customers
A- BBB rating
Physical branches in many areas that they serve
Free smartphone app
Their goal is to increase African American homeownership
Today we’ll take a look at “Legacy Home Loans,” a mortgage lender whose purpose is to increase homeownership rates for African American communities across America.
They recently noted that Black homeownership is at an all-time low of 46% (per U.S. Census Bureau data), so they’re trying to change that by positioning themselves in states where the Black population is 25% or higher.
The company is helmed by President & CEO Ben Slayton, a 54-year mortgage industry veteran who also happens to be the first Black REALTOR® in America.
To reach their goal, Slayton has strategically opened branch offices in select areas of the country, including Atlanta, GA, Chicago, IL, Dallas, TX, Las Vegas, NV, Oakland, CA, and Columbia, SC.
Legacy Home Loans Fast Facts
Direct-to-consumer retail mortgage lender
Offer home purchase loans, refinances, and multifamily financing
Licensed in 40 states and the District of Columbia
Founded in 2018, headquartered in Las Vegas, Nevada
Nation’s largest Black-owned mortgage company
A dba of Panorama Mortgage Group LLC
Parent company funded roughly $1.5 billion in home loans last year
Most active in California, Nevada, and the South
Legacy Home Loans is a direct-to-consumer retail mortgage lender that operates as a dba of Panorama Mortgage Group LLC.
They refer to themselves as the nation’s largest Black-owned mortgage company, and want to play a key role in the National Association of Real Estate Brokers (NAREB)’s initiative to have two million new African-American homeowners by 2022.
As noted, their plan is to open new offices in predominantly Black cities nationwide, including Baltimore, Birmingham, Charlotte, Jacksonville, and St. Louis.
Other locations include Tucker, GA, Houston, TX, Sacramento, CA, and most recently Florence and Greenville, South Carolina.
They appear to be most active in California, Georgia, Illinois, Louisiana, Nevada, and South Carolina, but are licensed in 40 states and the District of Columbia.
It seems they aren’t yet operating in Alaska, Arkansas, Hawaii, Idaho, Massachusetts, Montana, New York, Rhode Island, Vermont, or West Virginia.
Legacy Home Loans is big on home purchase lending (which is their goal), as their parent company does about 90% of total volume in purchase transactions, with the remainder refinance loans.
Interestingly, Panorama Mortgage also operates the 100% Hispanic-owned Alterra Home Loans, so it’s clear they’re working to increase homeownership rates for all minority groups.
How to Apply with Legacy Home Loans
You can call them up, visit a local branch, or apply online
Their easy-to-use digital loan application is powered by Ellie Mae
It allows you to link bank accounts and income/employment information
eSign important disclosures and check loan status from a secure online portal
Legacy Home Loans is big on technology, seeing that their goal is to become one of the top five independent mortgage lenders in the country that also happens to be 100% minority-owned.
To that end, they work with Ellie Mae to provide their borrowers with a seamless, and perhaps more importantly, paperless home loan process.
You can get started in a variety of ways – either visit their website and fill out a lead form from their homepage, at which point a loan officer will get in touch.
Or check out their branch directory, click on an office nearest you, then select a loan officer to work with. If you go this route, you can apply online all by yourself without getting in touch with anyone first.
Alternatively, you can simply call them up on the phone, or visit a local branch if one is located near you.
It might be in your best interest (literally) to call and get a mortgage rate quote first, then if you like what you hear, proceed with the online application.
Speaking of, it’s powered by Ellie Mae, and allows you to link financial accounts, scan/upload documents, eSign disclosures, and manage your loan via a secure online borrower portal.
You can also check loan status via their free smartphone app called Pronto, which lets you manage your financial information, invite co-borrowers, and chat with your lender/real estate agent in one place.
Loan Programs Offered by Legacy Home Loans
Home purchase loans
Refinance loans: rate and term, cash out, and streamline
Renovation loans: FHA 203k and Fannie Mae HomeStyle Conforming loans
Jumbo loans
FHA loans
USDA loans
VA loans
ITIN loans
Non-conventional loans: foreign nationals and non-warrantable condos
Multifamily loans (5+ unit properties)
Legacy Home Loans offers a wide array of home loan programs, including purchase, refinance, and renovation loans such as the FHA 203k.
So whether you’re a first-time home buyer or an existing one, they should have a product for you.
All different types of loans are available, including conforming loans backed by Fannie/Freddie, and government-backed ones like FHA loans, USDA loans, and VA loans.
Additionally, you can take out an ITIN loan if you lack a social security number, and they also work with foreign nationals.
Lastly, they’ve got a multifamily loan department for investors interested in financing 5+ unit properties.
Legacy Home Loans Mortgage Rates
You won’t find mortgage rates posted on the Legacy Home Loans website.
Instead, you’ll either need to fill out their online lead form by clicking “Apply Now!” and wait for a call back, or simply make a phone call to a loan officer to discuss pricing.
It’s unclear where they stand pricing-wise relative to other lenders out there, so take the time to gather multiple quotes to ensure you’re getting a good deal.
The same goes for lender fees – since they’re not listed online, you’ll need to know what they charge to compare their quoted mortgage APR with other banks, lenders, and brokers.
Legacy Home Loans Reviews
They don’t have a ton of online reviews since they’re a newer company, but I was still able to track down several hundred.
On SocialSurvey, they’ve got a 4.79-star rating out of 5 from over 600 customer reviews, which is an excellent score.
You can also search local branches and loan officers by name to find Google and Yelp reviews if you’re trying to determine which individual to work with.
While not an accredited business, they currently have an ‘A-’ rating with the Better Business Bureau rating based on customer complaint history.
All in all, they could be a good choice for a first-time home buyer looking to support the company’s mission of increasing African American homeownership.
Just take the time to ensure they are competitive and easy to work with compared to other mortgage companies.
Legacy Home Loans Pros and Cons
The Good
Can apply for a mortgage from any device without assistance
Digital mortgage application and loan portal powered by Ellie Mae
Lots of loan programs to choose from including multifamlly
Excellent customer reviews from past customers
A- BBB rating
Physical branches in many areas that they serve
Free smartphone app
Their goal is to increase African American homeownership
