From credit reports and 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: 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," Hello Alice president and co-founder Elizabeth Gore said on Living Not So Fabulously.
Gore knows firsthand, as she faced the bank’s judgment when she bought a 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." She offered suggestions for others in similar situations, such as using co-signers and proof of making payments on time.
Gore’s career has focused on helping small business owners succeed and thrive. "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 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."
Listen on your favorite podcast platform or watch on our website for full episodes of Living Not So Fabulously.
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