From credit reports to tax returns to a down payment, a prospective homebuyer needs many documents and assets when approaching banks for a loan or mortgage, which will be used to determine an applicant's riskiness and, therefore, rates. While these are standard for a bank's consideration, there's one thing that people might not realize would impede their ability to buy a home; and that's being a small business owner.
"Ironically, even though you're probably going to accumulate more wealth owning a small business, the banks see that as a risk and a volatility," explains Hello Alice President and Co-founder Elizabeth Gore to Living Not So Fabulously hosts David & John Auten-Schneider.
Both professionally and personally, Gore knows firsthand about all things small business and personal finance. Gore faced the bank's judgment when she bought her home with her husband. "When we bought our second home—my husband and I—it's when I was starting Hello Alice and it was a nightmare." Hello Alice is a free online platform that helps small businesses start and grow by providing funding, education, and networking opportunities. Her career has focused on helping small business owners not just succeed but thrive.
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"We serve a million and a half small business owners, and this is a major issue in our community," Gore shared, explaining that this hits home for their diverse customers. "90% of our small business owners identify as what we call the new majority. Women, people of color, US veterans, the LGBTQ+ community, people with disabilities, which make up, frankly, the vast majority of the 32 million small businesses."
So, throughout the episode, she offers some suggestions, such as co-signers and proof of making payments on time. With so many diverse small business owners around the country, small business owners must have access to information and resources to help them succeed with their missions in and out of the office.
For full episodes of Living Not So Fabulously, listen on your favorite podcast platform or watch on our website.
Yahoo Finance's Living Not So Fabulously is created and produced by Rachael Lewis-Krisky.