ST. LOUIS AMERICAN
September 29, 2022
HOW TO CREATE, GROW, AND PRESERVE YOUR WEALTH
How mentoring can help women-led businesses
What to do if your mortgage application is denied
How mentoring can help women-led businesses thrive
(StatePoint) The financial disparities between male and female entrepreneurs are far-reaching. Women-led businesses receive lower valuations, less capital and fewer conventional small business loans than those led by men. Women entrepreneurs also pay themselves less than men and often take the brunt of balancing their family’s needs while growing their business. In spite of these challenges, women-led businesses of all types are thriving across the United States, thanks in part to initiatives offering tactical support and networking opportunities.
Take it from Racquel Garcia, whose substance abuse recovery and life coaching business HardBeauty had substantial outside funding but needed guidance in becoming an efficient and sustainable operation. She applied to join the Milestone Circles program offered by the Nasdaq Entrepreneurial Center and funded by Wells Fargo Foundation.
As part of Wells Fargo’s Connect to More program, the Nasdaq Entrepreneurial Center places women entrepreneurs from across the country into “circles” that receive virtual and in-person peer and professional coaching over 12 weeks, plus the support of a growing network of fellow business leaders. As of June 2022, the program has graduated more than 540 entrepreneurs in 47 states, with an aim of graduating another 1,000 women over the next 12 months. Built by entrepreneurs for entrepreneurs, the goal is to create space for women to step away from business pressures, identify goals and support each other’s growth.
With the assistance of her program “sisters,” Garcia built two revenue streams that were less grant-dependent, growing her income by $200,000 in 12 weeks. But the impact of this support went beyond the business. For Garcia, who is one of the only women of color in her small Colorado town, the program was a rare opportunity to share her dreams with other women she would not have crossed paths with otherwise.
“Many women entrepreneurs suffer from imposter syndrome. This confidence gap and the systemic financial barriers and pressures faced by women entrepreneurs are
just some of the reasons I saw a need for this program,” says Jenny Flores, head of Small Business Growth Philanthropy at Wells Fargo.
For Terriekka Cardenas, a sixth grade teacher, engineer and owner of Perceptive Engineering, having this support is what helped her embrace the title of CEO. “That was the first moment for me that I didn’t box myself in,” she says.
Others, such as Ruby Taylor, who graduated from the first Milestone Circle in 2021, haven’t stopped meeting with their peers after the initial 12 weeks. In 2020, Taylor created a card game, LEGACY!, to teach people how to close the racial wealth gap and have fun doing it. Being able to craft a mission statement while enrolled inspired her to amplify her vision and found Financial Joy School, which coaches Black families on building generational wealth.
“My circle is a tight-knit group that continuously supports each other when we get stuck. We’re just a telephone call away when we feel discouraged,” she said.
While founding and growing a business comes with risks, support from peers and mentors can make all the difference, say program organizers. “When you’re able to show up authentically and say what you need help with -- the real things, the hard things -- and people can come around and provide support in an environment free of competition or judgment, that’s really game-changing,” says Flores.
BUYING A HOME MAY BE MORE
Buying your first home can be exciting but will also come with many unknowns. Stifel Bank & Trust created a guide to help you navigate your path to homeownership.
The first, and arguably the most crucial, step is figuring out if homeownership is right for you. We’ve included a list of pros and cons to help make your decision a little easier.
Pros of Homeownership include:
• A Solid Investment - Unlike renting, homeownership builds equity. There is no guaranteed price appreciation due to changing market trends, yet home values historically have increased over time.
• Tax Benefits - In many cases, interest paid on a mortgage is deductible under the current tax code (Please consult a tax professional. Stifel Bank & Trust does not provide tax advice.).
• Community - Owning a home helps anchor families in a community. See what you and your neighbors can accomplish when you all have a financial stake in the neighborhood.
• Future Planning - With each mortgage payment, you build equity. Over time, that equity can be accessed and used toward purchasing another home, achieving a life goal, or home making improvements.
Cons of Homeownership include:
• Added Expenses - You will need to be prepared for home repair and maintenance costs.
• Market Variables - The future may look different when it is time to sell your home. The economy, time of the year, and the number of active listings on the market can play a factor in how quickly and at what price a home will sell if you ever choose to do so.
• Flexibility - Purchasing a home is a larger time commitment than renting. Not only are you responsible for maintenance and upkeep, including yard work and appliance repairs, but it also takes more planning to move from a place you own than a place you are renting.
When you are ready to move forward with purchasing a home, you can plan ahead by having all of your documents in order. Our handy Mortgage Loan Documentation Checklist provides the typical documentation needed from borrowers:
• Two years’ most recent W-2’s for all applicants on the loan
• Two years’ most recent Federal Tax Returns for all applicants on the loan — all pages and schedules filed, including K1s if applicable (If clients hold 25% or more ownership in a company, business tax returns are needed)
• Most recent pay stubs covering at least 30 days
• Government-issued identification, such as a driver’s license
• Most recent two months, or quarterly,
Path to homeownership
programs, tax breaks, and a Federal Housing Administration (FHA) loan
• VA - No down payment is required for active or retired Military personnel who meet Veteran Affair’s mortgage guidelines; however, loan amounts over $548,250 require some down payment
In addition to a down payment, you’ll need to consider closing costs and prepaid items.
Closing costs generally include:
- Origination Fee
- Appraisal
- Credit Report
- Flood Letter
- Title Insurance
- Title Transaction Fees
- Courier Fees
- Recording Fees
- Survey
Prepaid items generally include:
• First-year of home insurance premium
• Interest from your closing date through the last day of the month
• Escrow for real estate taxes and homeowners insurance*
• Flood insurance** if applicable
statements of checking, savings, investment, and retirement accounts – all pages
• Name and phone number of insurance agent
Understanding what goes into your mortgage payment is vital. The components include:
• Principal & Interest - The portion of your payment that covers loan principal and interest each month varies. As is reflected in an amortization table, as each payment is made, a larger percentage of your payment goes toward paying down your principal balance.
• Escrows - Property taxes and homeowners’ insurance are items your lender collects through your monthly mortgage payment and pays on your behalf. Each year, your escrow payment is evaluated and recalculated. Any overages are refunded to you, while shortages will be factored into your monthly payments.
• Mortgage Insurance - If you have less than 20% equity in your home, monthly payments will include mortgage insurance.
Our dedicated and experienced lenders at Stifel Bank & Trust can help you decide which loan program suits you and your unique situation. Loan programs offered include:
• Conventional – minimum down payment is 5% but can be as little as 3% in some cases
• FHA - if you qualify as a first-time homebuyer, you may have access to state
your financing availability.
Samantha Dailey, Senior Mortgage Loan Officer, enjoys helping first-time homebuyers and is dedicated to ensuring clients’ seamless experiences, from answering general lending questions to navigating the loan process. Dailey states, “I think homeownership is a goal for most Americans, and I take pride in helping people in my community bring that goal to fruition. Buying a home is not only an investment for yourself but something that can be passed along to future generations. Stifel helps make this a reality through the grant programs we partner with that help make the purchase more affordable as well as the flexibility in loan options we provide for our clients.”
Ready to make a move to your first home? Contact Samantha Dailey at daileysa@stifelbank.com or (314) 624-9139, NMLS# 1748574.
There are many factors to consider in your path to homeownership. Once you decide you’re ready, you may consider getting a preapproval letter from your lender after reviewing how much you can afford in loan payments. The letter will help you and your real estate agent shop within your budget and provide confidence to sellers of
*Escrows are collected to cover homeowners (hazard) insurance and all applicable real estate taxes, including a twomonth cushion. Escrows may be waived for eligible borrowers with conforming loans and >20% equity.
**Flood insurance escrows are required for all properties located in a flood zone. Note, if property is located in a flood zone, borrowers who waive escrows for real estate taxes and homeowners insurance are still required to escrow for flood insurance.
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One woman is diagnosed with ovarian cancer every 23 minutes.
Samantha Dailey
Pandemic make you more concerned about finances?
(StatePoint) The COVID-19 pandemic disrupted nearly every aspect of people’s lives and, as it turns out, it also impacted their feelings about financial security and life insurance. In a national survey commissioned by Erie Insurance:
• Two-thirds of respondents (66%) said the pandemic made them more concerned about their financial security than they were before.
• Sixty-one percent said the pandemic made them more concerned about how their family would be taken care of financially if they became seriously ill or worse and could no longer provide for them.
• Half (49%) said the pandemic made them question whether they had the right type and amount of life insurance as part of their overall plan for financial security, and a quarter (25%) contacted their insurance agent about it.
If you’re among those who want to make sure your family is taken care of in the event something unexpected happens to you, but you aren’t sure where to start, here are three questions to ask your insurance agent:
1. How do I know whether I need life insurance? If you have family members or loved ones who depend on your income, it is a good idea to have life insurance
to ensure they will be taken care of. The mortgage on your house, your child’s college tuition, car loans, and funds for your final expenses are just a few things that can be paid for with money from your life insurance policy. Even if no one depends on your income, it still may make sense to get a life insurance policy to cover your final expenses and debts — including student loans.
Your journey rarely follows a straight path. But it’s those detours that make the trip worthwhile. Whatever discoveries and unexpected turns you make, it’s nice to have someone there to help navigate. At Commerce Bank, we’re built for helping you with your journey — whether you’re set on the destination or just enjoying the scenery.
2. How do I figure out how much life insurance to get? There are several factors to consider, including the needs of the people you want to protect and how long they will need financial support. Consider your income, or if you aren’t employed outside the home, what it would cost if those left behind would have to pay for services you currently provide, such as
childcare or home maintenance.
3. Which is better, term life insurance or whole life? It depends on where you are. Term life insurance protects you for a specific amount of time. An example would be while you are still paying off a mortgage or paying off your child’s college tuition. Whole life insurance accumulates cash value and allows for your loved ones to be covered throughout your lifetime.
Something else to take into account as you’re considering purchasing life insurance is the value it provides, even if you never actually need to use it. “One of the best reasons to get life insurance is that it sets your mind at ease to know that your loved ones will be taken care of,” said Louis Colaizzo, senior vice president of Erie Family Life, Erie Insurance. “In fact, 44% of those who responded to our survey said the pandemic made them appreciate the peace of mind they get from having life insurance even more now than they did before.”
To learn more about life insurance, contact your agent or visit erieinsurance.com/ life-insurance.
Amid the uncertainty created by the pandemic, consider channeling your concerns into action by creating a financial safety net for your loved ones.
What to do if your mortgage application is denied
(StatePoint) If you dream of homeownership, having your mortgage application denied can be devastating. If this does happen to you, it’s important to remember that you’re not alone. Thirteen percent of all purchase mortgage applications -- a total of nearly 650,000 -- were denied in 2020, according to federal government data.
Before quickly reapplying for a loan, it’s important to first understand the reasons your loan was denied. The lender is required to disclose that information to you within 30 days of its decision. You can also call your lender for further explanation. Having this knowledge will help you work toward building your eligibility for a mortgage.
In some instances, the situation involves a quick fix, such as providing missing or incomplete documentation. However, if the reasons cited for your application denial involve down payment cost, a low credit score, an adverse credit history or a high debt-to-income ratio, here are six steps you can take toward recovery:
1. Consult a Housing Counselor. Consider speaking to a community-based credit counselor or a HUD-certified housing counselor. They can help you create a plan to increase your savings, decrease your debt, improve your credit, access down payment assistance or take advantage of first-time homebuyer programs.
2. Improve Your Credit. In a 2022 Freddie Mac survey of consumers denied a mortgage application in the past four years, three in five cited debt or credit issues
as reasons given for their initial denial. If this describes you, take time to improve your credit profile before applying for another loan. Good credit demonstrates responsible money management and gives you more purchasing power, opening doors to better loan terms and products. Visit creditsmart.freddiemac.com to access Freddie Mac’s CreditSmart suite of free financial education resources that
can help you understand the fundamentals of credit and prepare you for homeownership.
3. Pay Down Debt. In the application process, lenders will look at your recurring monthly debts, such as car payments, student loans and credit card loans. By lowering or paying down monthly debts, you can build a positive credit history and lower your debt-to-income ratio. Not sure where to start? Tackle your debt with the highest interest rate first.
4. Obtain Gift Funds. If you’re short on money for your down payment, you may be able to use gift funds from a family member to decrease the amount you need to borrow.
5. Find a Co-Signer. A co-signer applies for the loan with you, agreeing to take responsibility for the loan should you default. The co-signer’s credit, income and debts will be evaluated to make sure they can assume payments if necessary. In addition to ensuring your co-signer has good credit, you should make sure they are aware of this responsibility and have sufficient income to cover the payment.
6. Look for a Lower-Cost Home. Remember, you should only borrow an amount you feel comfortable repaying. You may need to look for a lower-cost home than you’re financially prepared to purchase and maintain.
For more information and additional resources, visit myhome.freddiemac.com.
Homeownership: A key to building wealth
By Midwest BankCentre
For The St. Louis American
Most people want to own a home. They want safety, security, good schools for their children, a place to raise families, a home to call their own and to pass on to future generations.
But, beyond all the reasons why we become a homeowner, buying a home also lays the foundation for building wealth and financial security. In fact, it’s one of the most effective wealth-building tools available to individuals and families.
How does owning a home build wealth?
Buying a home is an automatic savings account. Each time you make a house payment, you are saving money. Month after month, year over year, you start to see that savings account increase as you pay down your loan balance, allowing those payments to work for you and your financial freedom. When you make a rent payment, on the other hand, all that money goes into someone else’s pocket.
A fixed rate mortgage provides stable
monthly payments. Rent payments can increase at any time. By owning, you can anticipate and budget for your living expenses and enjoy more flexibility in your financial decisions.
Homes build equity over time as you pay down your mortgage. This equity can be used to finance other expenses – like
home renovations, paying down high-interest debt, or funding a college education – using a home equity loan or home equity line of credit.
Your home can serve as a valuable asset. If a home’s value rises above the price you paid for it, you could sell it and use the difference for retirement savings,
to start a business, or buy a larger home investment and build additional wealth.
A home loan can help you build credit. Having some debt and making regular payments on it helps build and improve your credit history. A good credit score helps you get the best pricing and terms on future loans further enabling you the opportunity to make your money work for you.
Despite the surge in U.S. homeownership over the past two years, the National Association of Realtors reported that the homeownership rate for Black Americans (43.4%) is lower than it was in 2010 (44.2%), and nearly 30% less than White Americans (72.1%). While there are many reasons for this gap, one thing is clear: more than half of our Black community is missing out on building wealth by paying rent each month.
At Midwest BankCentre, we want to close this gap and help more people achieve the dream of homeownership. We understand how difficult the process of buying a home can be. So, we take the leap into homeownership and break it down into smaller, more manageable steps, and walk you through it, communicating
with you every step of the way. We take a personal approach, getting to know you and your situation, and finding a solution that works best for you. To get you there, we offer:
Personalized solutions. We get to know you and your goals and help you reach them. Everyone’s situation is different, and we want to help ensure you receive the best solution for you by listening, asking questions, and tailoring solutions based on your needs. This is a lifelong relationship, with your today and future goals in mind. You have a personal advisor for years to come.
Down payment assistance. Many banks require large sums for down payments. We work with you to make it affordable by offering 100% financing options and down payment assistance programs.
Quick local service. Our loan officers will call you back the same day. They will take the time to meet you where you want to be. Whether this is on the phone, via text, orsitting down with you, they are here to listen and advise.
Competitive rates with fixed terms. Many people are paying more in rent each month than they would pay for a mortgage payment. With a competitive rate and terms, you may find owning a home is more affordable than rent.
Ways to boost your credit score. If you’re not quite ready to buy, our loan officers can suggest ways to establish or improve your credit score to help you get the terms and rates you want in the future. We know how important owning a home is to you and your family, now and for future generations, and now is a great time to get pre-approved for a home loan. Give us a call today for a no-obligation conversation with a mortgage specialist. Bring all your questions and doubts, and we will listen, learn and decide how best to help you achieve your dream of homeownership.
When you DREAM BIG, we all RISE TOGETHER. Midwest BankCentre is one of St. Louis’s largest and oldest community banks. A values-led bank, we invest in people and their potential – not just credit scores. An investment in you and your home is an investment in the entire community.
All deposit and loan documents, contracts, and all other disclosures/notices are provided in English only. Member FDIC. Equal Housing Lender.
Alisa Vaughn Mortgage Loan Officer, NMLS# 2008136 avaughn@midwestbankcentre.com 314-544-8599
Sam Karengi
Jr. Mortgage Loan Officer, NMLS# 1146087 Skarengi@midwestbankcentre.com 314-544-7222
7 Tips for finding a medicare plan that works for you
(StatePoint) Feeling overwhelmed by your Medicare options? There’s a good reason for that. With more than 3,000 Medicare Advantage plans, over 700 Part D Prescription Plans available and an array of carriers offering Medicare Supplement plans, there’s a lot to consider.
“Whether this is your first time enrolling in Medicare or you’ve been through the process before, it’s easy to get confused by the big picture, not to mention all the details,” says Ryan Kocher, Medicare growth officer at Cigna.
This Medicare Annual Election Period (AEP), Kocher is demystifying the enrollment process by sharing the same tips he offers to his own friends and family members:
1. Don’t wait. Understanding Medicare can protect your health and finances in the years to come. If you are transitioning from a commercial plan, work with an expert with your company’s insurance plan to avoid gaps in coverage as well as late penalties.
2. Nail down the basics. There are many different plan types. Here’s a breakdown:
• Original Medicare, offered through the U.S. government, includes all providers who agree to participate in the program.
• Medicare Supplement plans are plans offered by many private insurers that complement Original Medicare. For an additional premium, these plans cover costs such as copays and coinsurance not covered by Original Medicare. There are a number of standardized options available.
• Standalone Prescription Drug Plans, offered by private
insurers for a monthly premium, provide drug coverage not covered by Original Medicare or Medicare Supplement.
• Medicare Advantage (MA) plans cover everything covered by Original Medicare, and most also include dental, vision and hearing benefits. They often include prescription drug coverage, and other extras like over-thecounter drugs, transportation to doctor’s visits and pharmacies, and fitness plans. MA plans are often available at no extra cost.
3. Review your plan annually. During the AEP (October 15-December 7), it’s important to review your current Medicare plan, even if you like it. This is because plan details are subject to change every year. Review the Annual Notice of Changes, which is mailed to you by your insurer each September. This document spells out plan changes for the upcoming year.
4. Compare all the costs. Be sure to factor in all the associated costs of a given plan, not just the monthly premium. Out-of-pocket costs, such as co-pays and deductibles, should also be considered. Additionally, note the prices and rules around the prescription drugs you take.
5. Check network requirements. Before signing up for a particular plan, check to make sure that your favorite health care providers are in its network. While you may be able to go out of network for care, be prepared to pay more if you do.
6. Ask questions. Don’t settle on a plan until you understand it. If you have questions, reach out to your broker, insurer, physician and even those friends and family members who have Medicare for help.
7. Use your plan. Now that you have a plan, make the most of its benefits. Schedule all the screenings, vaccines and other preventive health measures recommended by your doctor. Early intervention can help detect conditions early when they can be more effectively treated.
For more information about Medicare, visit Medicare. gov, Cigna’s website at www.cignamedicare.com or the state health insurance assistance program in your area.
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