6 The Hampton Roads Messenger


Volume 7 Number 2


Virginia Small Businesses Rate Most Important Election Issues


Gas costs, tight lending environment weigh heavily on entrepreneurs Washington, DC - The George


Washington University and Thumbtack. com have released new data showing that Virginia small businesses overwhelmingly rank the economy and jobs as the most important factor in choosing a president. Surprisingly, however, ethics, honesty and corruption in government rated as the second-most important issue for small businesses in Virginia.


Although both presidential


campaigns claim to promote policies that benefit small businesses, too little attention has focused on asking entrepreneurs themselves which policies are most important to their business. The George Washington-Thumb- tack.com


Small


Business Political Sentiment Survey is unique in investigating the political issues that matter most to small


businesses


themselves, drawing data from an extensive, nationwide universe of job creators and entrepreneurs.


“Small businesses are deeply


attuned to the effect of politics on job creation and the economy,” said Dr. David Rehr, a lead researcher on the study with the George Washington University’s Graduate School of Political Management. “Entrepreneurs are feeling squeezed by the tight lending environment, and they want their elected leaders to curb the influence of money in politics.”


Some of the key findings for


Virginia include: • 40% of all Virginia small


business owners rated the economy and jobs as the single most important factor for them in choosing a president.


• Nationally, 39% of small


businesses say that President Obama is the most supportive candidate of small business, with 31% saying the same


of Governor Romney. And 28% are still not sure which candidate is more supportive of small business.


• Virginia small businesses rate


gas and fuel costs as the single most burdensome cost to their businesses - more burdensome than even self-em- ployment taxes or health care costs.


• 83% of Virginia small


businesses stated that state small business incentives are important to the success of their business.


• Among small business owners


"In my opinion, the biggest problem facing us is people are fearful of the future. They are afraid of housing, college tuition, and future


healthcare expenses.” -- Home remodeler, Manassas


surveyed nationally, President Obama fared better than Governor Romney with businesses of five or fewer employees, 48% to 37%. The opposite was true among business of more than five employees, with Romney earning 49% to Obama’s 39% (among those


registered and likely to vote). • 28% of Virginia small


businesses indicated that President Obama’s health care policy helps their business.


• Taxes do not appear to be a


decisive factor for small businesses in this election, with only 3% of small businesses nationally rating it as the most important issue in their choice for president. Even among economic issues, tax policy was the top concern for less than 6% of small businesses.


“After a month-long survey of


over 6,000 small business owners nationwide, we have heard an unusually nuanced story about what really concerns them,” said Sander Daniels, co-founder of Thumbtack.com. “These entrepreneurs are an important barometer of our nation’s economic health and political sentiment. When job creators speak, we need to listen as closely as possible.”


Hampton University Hosts Career Fair Your Mortgage FROM PAGE 1


savings and income for other purposes. “It’s important to keep in mind other financial goals and obligations you may have, such as saving for retirement or a child’s education,” said Glenn Gimble, an FDIC Senior Policy Analyst.


Order a free copy of your credit


report before you apply for a mortgage. Review the report carefully to verify its accuracy and dispute any errors. Errors in your credit report may affect your credit score, and higher credit scores can mean lower interest rates. To order a free copy of your credit report from each of the three major credit bureaus every 12 months, and to purchase your credit score, visit www.Annu- alCreditReport.com or call toll-free 1-877-322-8228.


If you have questions about your


readiness for a mortgage, consider speaking with a reputable housing counselor. “A good housing counselor can help potential borrowers prepare for homeownership,” said FDIC Policy Analyst Matt Homer. To locate a counseling agency that is approved by the U.S. Department of Housing and Urban Development (HUD), see For More About Mortgages.


Looking for a Mortgage Stick to your budget. “Borrow


only what you can comfortably afford to pay,” said Elizabeth Khalil, an FDIC Senior Policy Analyst. “Even if you are approved for a higher loan amount, consider borrowing less. You’ll save money in interest payments, plus you can avoid overextending yourself.”


Make sure your mortgage loan


originator is registered with the government. Go to www.nmlsconsum- eraccess.org to conduct a free search of licensed and registered lenders.


Shop for a mortgage that meets


your needs, and don’t be afraid to negotiate. “Lenders are required by law to provide important information to help you understand mortgage-related offers and compare multiple options,” noted Luke Brown, an Associate Director in the FDIC’s Division of Depositor and Consumer Protection. “We urge you to review these documents carefully and ask any questions that you have.”


It’s especially important to


remember that nearly all of the terms of a mortgage, such as the interest rate and fees, are negotiable and lenders may not initially offer you the best package.


As you shop around, compare


multiple options and scenarios and consider the following:


• Fees can vary widely from lender


to lender. In addition, you may be able to purchase “points” to reduce your interest rate. Points have to be paid at the loan closing (“settlement”).


• With interest rates currently at Photos courtesy of Hampton University


Counseling and Planning Center hosted their Annual Fall Career Fair at the Hampton University Convocation Center last month. Government agencies and institutional representa- tives from all over the country had the opportunity to acquaint students with their organizations while recruiting potential employees.


The mission of the Career Counseling and Planning Center is


The Hampton University Career


to support academic programs and to provide services that assist students and alumni in developing, evaluating and implementing career plans that lead to employment and lifelong personal development. The Center is the liaison between the students, alumni, corporations and government agencies. All resources are employed to facilitate and enhance the student’s professional development.


low levels, consider a fixed-rate loan even if an adjustable-rate mortgage (ARM) offers a slightly lower rate at first. If you are considering an ARM, ask the lender how high the rate may rise. Lenders also may offer variations that start with low payments and increase to much higher ones, with names such as interest-only loans, hybrid mortgages and balloon payment loans. These loans can carry significant risks for borrowers if they can’t make the new, higher payments.


• The Annual Percentage Rate (APR) represents the overall cost of the


October 2012


loan as a yearly rate and incorporates the interest rate as well as other costs, such as upfront points. “The APR is the fully-loaded price tag that conveys the total cost of a loan,” says FDIC Senior Policy Analyst Kathleen Keest. “But keep in mind that if you are considering an adjustable-rate mortgage, the APR may not be as useful since it can change over time.”


Review all loan documents


carefully. Within three days of applying for a mortgage, your lender must provide you a “Good Faith Estimate” of costs and additional disclosures of key loan terms. Also, before you go to sign the loan documents at settlement, the lender must provide the actual fees, which you can compare to what you received in the Good Faith Estimate.


When loan documents are


provided at settlement, review them to be sure that the terms accurately reflect the agreement you made with your lender. Only then should you sign.


Managing Your Mortgage Establish a system for making


your payments on time. Good choices may be automatic payments from your bank account or online bill paying.


Build a rainy-day fund. You may


be able to rely on that to make mortgage payments if you fall on tough times.


If possible, consider paying off


your mortgage faster. Doing so will reduce future interest costs and save you money. Consider adding extra money to each mortgage payment to reduce principal.


Carefully review all


correspondence from your lender or servicer. If your loan is sold to a new servicer, for example, your new servicer will notify you where to send your mortgage payment.


Keep up with insurance payments


and respond quickly to any notices regarding a lapse of coverage. If you fail to obtain required insurance or your policy expires, lenders may take out “force-placed” insurance on your behalf and pass along the cost, which is generally very high. But you can still obtain your own less-costly insurance policy so that the bank can cancel its force-placed policy.


If you have questions or concerns


about home insurance and you need some guidance, consider starting with your state or local consumer affairs office (www.consumeraction.gov/ state.shtml) or your state’s insurance department (www.naic.org/state_web_ map.htm).


Always be on guard against mortgage-related scams. Fraud artists typically make false promises to erase a bad credit history or rescue a home from foreclosure. But these claims often prove too good to be true. Look at these offers with a critical eye, and don’t hesitate to seek assistance before committing to anything. Here, too, consider contacting your state or local consumer affairs department.


If you’re struggling to make


mortgage payments, immediately contact your loan servicer, perhaps with the help of a housing counselor, to discuss your options to stay in your home and avoid foreclosure. For additional guidance, see the FDIC’s foreclosure prevention online toolkit at www.fdic.gov/consumers/loans/ prevention/toolkit.html. You can also learn more about the government’s mortgage relief options on HUD’s Web site at go.usa.gov/fJW.


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