If you are like most in the world, you found yourself graduating from high school or college without the faintest idea of what you wanted to do for a career.  At the time, you found work that was available and perhaps settled into that particular job or industry as life began to happen.  As the years went by, you developed new passions and found inspiration in places that a younger version of you did not know existed.  Now, you are versed in the ways of the world and the passion for your hobby has become so powerful that thoughts of tuning it into a full-time job creep into your mind.  Here are a few examples of hobbies that make great businesses:

Health and Beauty

The health and beauty sector is booming.  In 2017, the industry reached over $17 Billion in sales, which was a 6% increase over 2016.  Additionally, over 82% of women surveyed believe that social media is the primary influencer of health and beauty trends.  Due to these statistics, there has been a rapidly increasing number of private distributors that have emerged to sell your favorite product direct from the manufacturer.  The days of the Avon Lady are back!  The keys to success as an entrepreneur in this space are to be passionate about the product and make it your full-time commitment.  In this industry, if you give a 10% effort, you will get a 10% result.

Fitness/Wellness

Fitness and wellness continue to be a rapidly growing market.  Whether it is a large-scale gym or small scale personal training center, new businesses are born every week.  Many people who get into these businesses do it in steps.  Perhaps, you go to a spin class on a daily basis and then after a year, the instructor asks if you would be interested in leading the class.  Since spin has become your passion, you oblige and collect a small fee or discount for the service you provide.  You then see there is an opportunity to take your passion to the next level and decide to invest in your own studio.  The key to success in this industry is that you must be hands on and ready to do the work to make the business thrive.

Design

The rise of Pinterest has given birth to a whole new segment of DIY designers.  Perhaps you have taken your creative passion to the internet and have received requests for more of your creations.  Whether your passion is creative design or tangible design, businesses are calling for freelance designers on a daily basis.  Sites like elance, sortfolio, upwork and freelancer are excellent places to display your work and find contract work.  Based on your availability, this can become a full -time job without the constraints of an office setting.

Childcare/Education

Statistics say that there is a major shortage of child care professionals in the workforce today.  If you have created a passion around early child development, there are many ways to turn this passion into a business.  Whether you decide to get into daycare, tutoring, mentoring, para-education or teaching, you have the ability to start a business in this segment.  The key to success in this segment is to ensure that you have all of the necessary legal and paperwork complete prior to starting your endeavor.  Once these are complete, find the segment that is of interest to you and start to learn the ropes with an established business or mentor.

Women in Business series authored By Diedre Barret – Senior Vice President of Sales and Marketing for Guaranty Bank.

As the end of the year approaches, it is time to compile a checklist of items that need to be in order before December 31^st.  While it might seem easier to push a few things off until next year, or bundle them with the New Year’s Resolutions, organization of your financial life can give you a head start in 2018.  Here are a few items to add to your end of the year checklist:

Check beneficiaries – It is a best practice to check your beneficiaries on an annual basis.  Beneficiaries are people who have been designated to receive a benefit from a policy or account in the case of death.  Possible reasons to change a beneficiary could include their death, marriage, divorce, name change or minor becoming an adult.  Making this part of the year end checklist will make it easy to remember.

Empty flexible spending accounts – Flexible spending accounts are usually tied to health insurance.  Most accounts expire at the end of the calendar year, although some could roll over or have a grace period.  Check with your insurance provider or employer for exact details for the plan.  If the account does expire at the end of the year, spend the remaining allotment on approved medical expenditures.

Max out retirement contributions – You are allowed to contribute a certain amount of money into a 401K or Individual Retirement Account (IRA) during a calendar year.   The contribution could be used as a tax deduction in the case of an IRA or pre-tax income in the case of a 401k.

Donate to charity – Charitable donations are an excellent way to earn additional tax advantages, while contributing to your local community or favorite charity.  If your donations are in tangible items, as opposed to monetary, ask for a receipt from the charity for evidence of the donation.  It is also a good idea to take a picture and keep it with your records.

Set up a meeting with your personal banker – It is a good idea to set up a meeting with your personal banker on an annual basis.  Bank products change on a regular basis, as do interest rates and it is possible to get a better product than you currently use.

Start thinking about next year – Here are a few questions to consider:

• Will you have a significant life change such as a birth or marriage?
• Will any of your children begin their journey for higher education?
• Are you looking to purchase a new home?
• Are you within 5 years of retirement?
• Is there a likelihood that you could come into an inheritance?
• Will you be in a position to pay off debt?

If you answer “yes” to any of these questions, it is a good idea to discuss with a banker or financial planner.

If you have any questions regarding end of the year planning, you can contact us by clicking here or call us at 662-247-1454.

An e statement, or electronic statement, is an electronic version of the paper statement that is customarily sent via mail.  The statement usually comes once per month and has a listing of each transaction that occurred within the account.  The primary difference, other than delivery, is that the electronic statement can be accessed at any point in time and aggregate transactions.  Here are a few benefits of using an E-Statement:

Information is at your fingertips – E statements add a level of convenience to your banking relationship that lets you control your finances on your schedule.

• Receive an e mail from Guaranty Bank when your statement is ready.
• View our statements 24 hours a day, 365 days a year from anywhere with internet access.
• Download and save your statements for print or e mail. You are able to produce your statements for third parties such as an accountant or attorney.
• Merge your statement into software such as Quicken or other Personal Financial Management software.

Safer than paper statements –  E statements cannot be taken from your mailbox, delivered to the wrong address, misplaced in a filing system, or taken from your trash.  When you log into the E-Statement portal on GBTonline.com, your connection is encrypted and secure against any unwanted threats.

Good for the environment – When you use E Statements, you are doing your part to extend the life of our precious natural resources.  Studies show that a paperless office uses only 30% of their paper based counterparts.  United states office consumption is upwards of 12.1 trillion tons of paper per year.  Every little bit helps!

In order to sign up for E-Statements from Guaranty Bank, do the following:

1. Sign into your Online Banking Account and complete the following steps:
   1. Hover over the “Administration” tab
   2. Click “Change Statement Deliver Method” link
   3. Change your Statement Delivery method from paper to “online”.
2. Call your local branch to get signed up.

If you have questions about E-Statements click here or call us at 662-247-1454.

Mobile banking usage has tripled since 2009 to over 111 million users nationally (source: Statista).  At the current growth rate, mobile banking could replace internet banking by total users within the next 7 years.  Although mobile banking offers you the freedom to monitor your account, communicate with the bank and a host of other features, the convenience opens the opportunity for fraudulent activity.  Although mobile banking is one of the safest digital tools, best practices must be used to ensure safety.

Password Protect Your Mobile Device – Keeping passwords on your device is the first line of defense against fraudulent activity.  Lock the device when it is not in use and require a password to access.  Do not use sequential passwords (1234) or passwords that have your information (address, your name, street).  Consider using a pattern, fingerprint, or other authentication for access to your device.  If you use Mobile Banking with Guaranty Bank, you have the ability to use a fingerprint sign on (if your phone is capable).  Also, when using mobile banking, do not use public WIFI, but rather a secure access point that blocks others you do not know.

Do not expose sign on passwords – When logging into mobile banking, keep the password information masked so it is not sitting within the log in box.  Also, always log out after use and do not use autofill for the password when logging in.  These settings will help reduce risk if your device were ever in someone else’s hands.

Update your phone –  Updates to your phone usually include bug fixes and patches.  A patch is a piece of code that has been built specifically after a vulnerability has been detected.  Do not delay updating a device when something has been released.

Delete bank text messages – Delete text messages from the bank after you have read them.  Although there is no information within the text, it is still a best practice to not leave them on your device.  As a reminder, your bank will never ask you for your account number, PIN, or any other personal information via text message.

If you lose your phone – If your phone is lost or you change your number, contact the bank immediately and have your mobile account put on hold.  You will need to download the service again with your new device and go through the registration process.

Do not modify your device – If you have modified your device in any way from its original performance specifications, it is not wise to use mobile banking on the device.  This includes phones or tablets that have been altered to improve performance, download third party software, change root files or enabling features that void warranties.

If you would like more information on mobile banking click here or call your local branch.

During the 2016 – 2017 school year, Guaranty Bank partnered with EverFI to bring Financial Education to local area schools.  The program is designed to provide digital education resources to schools, with no cost to the school or school district.  Financial education courses include everything from introductory topics such as saving and budgeting, to advanced topics like insurance, taxes, and investing.  At the end of the program, students will have a more thorough understanding of financial concepts and are better prepared to make decisions. These skills will help them reach their financial goals in the future.

Guaranty Bank, along with EverFI, were able to provide instruction for 296 students in 3 county schools.  This added up to over 1,800 hours of learning.  Scored topics included financial literacy, understanding money, and money management.  The results for the participating students were astounding!

Financial Literacy

The course on financial literacy included lessons on banking, savings, payments, credit scores, student loans, renting vs. owning, insurance and taxes, consumer protection and investing.  The students increased their pre-test scores by an average of 89% upon completion of the course.  The greatest gain was seen in the renting vs. owning segment.

Understanding Money

The key question in the understanding money course is, “can you help your friend from outer space understand the difference between needs and wants?”  In this course, the students completed lessons on the following topics:  responsible money choices, income and careers, making plans with money, credit and borrowing, insurance and safety, savings and investing.  Students showed the highest gains in savings and investing.

Money Management

Research shows that feelings of self-efficacy, or confidence in one’s ability, are an important outcome in financial education.  This confidence in financial capability will carry all the way into adulthood.  After taking the course on money management, the students are more confident and better prepared to make financial decisions.

If you would like more information on Guaranty Bank and our commitment to financial education, please click here.

If you have established credit, there is a high probability that you were affected by the data breach at Equifax.  According to Equifax, which is one of the country’s three credit reporting bureaus, the breach lasted from mid-May through July and affected 143 million consumers.  Although some of the records were from the UK and Canada, there is still a good chance that you were affected.  The hackers accessed people’s names, Social Security numbers, birth dates, addresses and driver’s license numbers. They also stole credit card numbers for about 209,000 people and dispute documents with personal identifying information for about 182,000 people.

How can I find out if I was affected?

Equifax has created a portal on their website to help consumers find out if their records were compromised.  You can get to the website by clicking here.   Once you complete the inquiry, the site will prompt you to register for TrustedID.  Because Equifax was compromised, the safe best is to not put any unnecessary information back into their site.  You do not need to complete this action, regardless of the outcome of the test.  Guaranty Bank offers a monitoring system that will provide protection for the future through its Freedom Checking account.

What to do next?

Enroll in Fraud Alert– A fraud alert program is a system that is tied to your account that will notify you when suspicious activity occurs.  Whether it is your bank account, your credit card, or other banking account, a fraud alert or monitoring system should be activated.  Settings can be turned up or down based upon your own preferences.  Contact your financial institution for information.

Con artists may contact you – Historically, fraudsters will take advantage of customer awareness during a large breach and pose as your bank to gain information.  If someone does call you, ask to call them back at the number for your local branch.  You can also tell them you would be happy to sit down and talk to them face-to-face and ask to make an appointment.  Guaranty Bank will never ask you for your account number, your PIN, or your social security number on a phone call.  The only information Guaranty Bank will request is a valid e mail or phone number.

Check your credit reports – You can access your credit report through a number of different sources, including Guaranty Bank.  At Guaranty Bank, you can sign up for IDProtect, which will monitor your Equifax, Experian and TransUnion credit files daily, and automatically alert you if key changes occur.  It is also possible to obtain your credit report and look for suspicious activity.  If you suspect activity, contact your financial institution immediately.

Place a freeze on your credit – If you are not planning on making any major purchases within the next 6-12 months, it is a good idea to put a freeze on your credit.  This simply means that no one will be able to apply for new credit using your information (this includes you).  To activate the “freeze”, you will need to call each of the three credit reporting bureaus to make the request.

Monitor your bank accounts – Read your monthly statements or log into online banking to check recent activity on a fairly frequent basis. If you suspect fraudulent activity on your bank accounts, you may want to request all new credit and debit cards, as well as changing all of your passwords and PINs.

Watch your insurance – Because the hackers were able to obtain social security numbers as well as drivers license numbers, it is possible to steal your medical identity.  Signs of medical ID theft include:

• a bill for medical services you didn’t receive
• a call from a debt collector about a medical debt you don’t owe
• medical collection notices on your credit report that you don’t recognize
• a notice from your health plan saying you reached your benefit limit
• a denial of insurance because your medical records show a condition you don’t have

If you have any questions please call your local branch or contact Guaranty Bank at 662-247-1452.

Wire fraud grew almost 400% in 2016, according to FBI statistics.  An increase in digital payments and wire transfers have given fraudsters new ways to compromise your accounts.  When you or your business are conducting wire transfers, consider the following topics to avoid becoming a victim of wire fraud:

How Did You Receive Payment Instructions?  For typical transactions, payment instructions will be specific.  For instance, the receiving party will provide all of the required information on an official form or document.  Phone numbers, e-mail addresses and websites can be reproduced by fraudsters, but public search can be used to verify. Here are a few signs to look for when receiving payment instructions:

• Does the company have a website?
• Does their digital presence seem to match what they sell?
• When the company is “Googled” do they show as a scam?
• Can you call a publicly available number to confirm, such as the bank customer line?

Do You Know The Recipient Of The Payment?  Many fraudulent transactions are executed by a person or small group of people who try to gain access to your information by posing as a potential customer.  Even if they are known to you, call and confirm the name and email address of the person on the other end.  If they are unknown to you, look for these common themes used by fraudsters:

• They are from a foreign country or out of your typical market.
• They are representing either the United States Government or a foreign government.
• They will not meet with you in person.
• All of your interaction has been over e-mail.

Does The Transaction Seem Normal?  You have executed thousands of legitimate transactions over the course of your professional career.  It is a rare occasion where one of those transactions is done differently than all of the others.   Here are a few transaction types that might raise a red flag:

• You have won something for which you did not register.
• You are asked to send money as part of a job application.
• You are asked to pay for a good or service by paying a third unrelated party.
• You are asked to receive payment (in the case of selling a car) via a P2P site.
• You are asked to provide information for a “refund.”
• The offer seems “too good to be true.”

Execute Best Practices For IT Security – The first line of defense against fraud for any business is to execute best practices when it comes to IT security.  Adhering to simple rules can drastically reduce your risk of fraud.  Here are a few best practices that you should consider:

• Change passwords every 60 days.
• Use complex passwords, include letters, numbers and symbols with no meaning.
• Check credit card statements monthly.
• Keep card information secure.
• Keep firewalls and malware defense up to date.

If you have any questions about wire fraud, please call your 662-247-1454 or click here for more information.

Going through the mortgage process, especially for the first time, can be a stressful endeavor. These feelings may come from not being familiar with the terms used within the industry.  A bit of knowledge going into the process can help to ensure a favorable experience and can improve the communication between the borrower and the lender.  Here is a list of terms that might help to provide some insight into mortgage loans:

Term – The length of the repayment window for the loan.  It is typically measured in years.

Rate – The interest rate which will be charged on the loan amount.

30 Year Fixed – This is a type of mortgage in which the interest rate remains fixed for the entire life of the loan (30 years).  The borrower will have 30 years to pay off the principal and interest of the loan.  A borrower will select this type of loan in order to keep their monthly payment low while ensuring that the rate will not move.

15 Year Fixed – This is a type of mortgage in which the interest rate remains fixed for the entire life of the loan (15 years).  The borrower will have 15 years to pay off the principle and interest of the loan.  A borrower will select this type of loan to keep the total amount of interest paid lower, but will result in a higher monthly payment.

Adjustable Rate (ARM) – With this type pf mortgage, the rate is fixed for a set period of time and will adjust based on the index rate at that time.  Interest rates during the beginning are typically low, resulting in a lower payment but can increase once the rate is set.  The rate thereafter can adjust at set intervals.

Private Mortgage Insurance (PMI) – When the amount of the loan is over 80% of the appraised property value, lenders require the buyer to carry Private Mortgage Insurance.  This insurance must be carried until the amount of the loan is under 80% of the value.  The insurance protects the lender from default on the loan.

Down Payment – The percentage of the purchase price the borrower will be paying at the time of closing.  Some loan programs require a minimum down payment to qualify for the loan

Escrow – At the time of closing, the borrower is typically required to set aside an amount of money for annual taxes and property insurance.  The lender will hold the money, in a non-interest bearing account, on behalf of the borrower and pay the taxes. The lender will make the payment when it is due.  If there is an overage in the escrow account at the end of the year, the borrower will receive a refund of those funds from their lender.

Homeowners Insurance – Prior to the close of the loan, the borrow will have to acquire property insurance to protect the home against loss due to a fire or other calamity.  This will need to be in place in order for the loan process to be complete.

Appraisal – The process of assigning an estimated value of the property based on the review of a certified professional.  The professional will assign the value based on an on-site inspection, as well as market analysis of comparable properties that have been sold in a recent timespan.  This is typically a requirement for the lender.

Closing Costs – Rather than the borrower making individual payments for each line item at the time of service, the lender will typically receive payment for these services as the time of closing.  Closing costs are fees and expenses associated with closing a mortgage loan.  The term closing costs actually covers two separate categories:  Closing Costs and prepaid Items.   Closing costs would include such fees as: lender fees, appraisal, closing attorney fees.  Prepaid items would include  such fees as:  first years homeowner’s insurance, daily interest and escrows.

Title Insurance – The lender is using the property as secured collateral to make the loan.  In order to do this, the lender must make sure there are no liens or judgments on the property.  The lender will require the borrower to have title insurance on the property.  This ensures the home will always be free from any liens.

Conventional –  A conventional loan is a mortgage that is not guaranteed or insured by any government agency and is typically fixed in its terms and rate. The minimum down payment for a conventional loan ranges from 3% to 5%.

FHA –  An FHA loan is a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for low-to-moderate income borrowers who are unable to make a large down payment.  The FHA loan requires a minimum 3.5% down payment.

USDA –  A USDA Home Loan from the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to borrowers purchasing in an eligible MSA that meet the income eligibility limits for household income.  The USDA loan offers 100% financing to eligible borrowers.

VA – A VA loan is a mortgage loan guaranteed by the Department of Veterans Affairs (VA). The VA loan was designed to offer long-term financing to eligible American Veterans or their surviving spouses (provided they do not remarry).  The VA loan offers 100% financing to eligible Veterans.

Mortgage Insurance Premium (MIP) –  This is an insurance premium paid by homeowner on an FHA loan and is used to protect the lender from losses in case of default on the loan.  This insurance can possibly be deducted in the same manner as home mortgage interest on tax return filing.

Funding Fee – The Department of Veteran’s Affairs (VA) and US Department of Agriculture both charge a Funding Fee in connection with the mortgage loan. For VA, only veterans receiving VA disability are exempt from paying this fee. The funding fee is a percentage of the principal loan amount and is normally financed into the loan.  The FHA loan also has what’s referred to as UFMIP, or “Upfront Mortgage Insurance Premium” which is also financed into the mortgage loan.

Discount Points – Discount points are a type of prepaid interest or fee that borrowers can pay to lower the interest rate on their mortgage loan. Discount points could be tax deductible only for the year in which they were paid.

Processing – This is the entire sequence of steps, from the time a loan application is completed by the loan officer to the time loan is closed.

Underwriting – This is the process that we undertake to analyze all of the information provided by each loan applicant and their credit file to assess whether or not that applicant meets the minimum loan criteria. As part of that process all data is verified, analyzed and summarized to generate a loan approval or counter offer for each applicant.

Closing – Date on which the mortgage deed and loan documents are signed and delivered, and the proceeds of the loan are paid to seller and/or lender. This is also the date on which the title to a property is conveyed to its buyer and the sales proceed funds are transferred to its seller.

Clear to Close – The lender has completed all their work, are satisfied with all documentation provided and the loan is clear to proceed to closing.

If you have any questions or would like more information on the mortgage process click here or call 662-449-1296.

When is the right time to purchase a new home?  Perhaps it is when the market conditions are just right or you have experienced a life change which will require a new purchase.  Regardless of the situation, there are a number of things to consider when thinking about purchasing a new home.

Do you have money for a down payment?  Most lenders will require a 20% down payment in order to qualify for a conventional mortgage.  That money can be from personal savings or from the sale of another property or asset.  If you are able to pay a larger amount down, you will save a significant amount of money over the life of the loan as well as cut down on your monthly payment.  There are loan types for some buyers which require a smaller down payment or down payment assistance.  As part of the prequalification process, consult with your mortgage banker on the down payment options that will work best for you.

Is your credit score as high as it can be?  While total loan amount and terms are key drivers in determining your loan type, credit score can also be a major factor.  If you considering purchasing a home and have not established credit, it is important to begin well before you start shopping for a home.  If you have a lower credit score, it will improve your overall monthly payment if you work towards raising your credit score before looking for a new home.  Once you start the mortgage process, you will want to keep your credit as is until the loan is complete.  Anything that you do to establish or improve credit should be done well in advance of the mortgage process.

Can you afford your monthly payment?  The three factors which will determine your monthly payment are the amount of the loan (including home price and down payment), length of the loan and the interest rate.  Negotiating a better price or bigger down payment can reduce the amount of the loan, thus bringing a lower monthly payment.  If a borrower can improve their credit score or qualify for specific loan types, they can reduce the interest rate which will result in a lower monthly payment.  If a term is longer, such as 30 years, it will result in a lower monthly payment than a 15-year mortgage.  It is important to note that a lower monthly payment due to a longer term will result in more payments over the life of the loan and more interest paid on the loan.  Other factors to consider in your monthly payment include Home Owners Association dues, taxes and insurance.

What are the market conditions?  It is important to understand the overall market conditions when looking to purchase a new home.  The easiest piece of data to find is inventory.  If there are more buyers than sellers it will be easier to sell your current home but you may pay a premium price for your new home.  On the contrary, if there is more inventory than there are buyers, you may have to be patient when selling your home.  However, you could be poised to get a better deal on your new home.  The market can change quickly based on interest rates.

If you have any questions or would like more information on the mortgage process click here or call 662-449-1296.

Getting a mortgage can seem like a complicated task.  You have to get approved for the amount, the house has to be approved and you have to go through the closing process, while still managing your financial situation.  Although there are many steps in the process, certain activities can further complicate the paperwork.  Here are a few helpful hints to make the mortgage process less complicated:

Keep Your Current Lifestyle

It is important to keep your financial life operating as usual during the closing process.  For instance, any major life change, such as a new job, will slow down or perhaps stall the process.  If you are planning a life change such as marriage or retirement, it is best to wait until after the loan process has been complete.  Mortgage lenders will need to see a history of consistent income, as well as tax returns in order to approve the loan.  It is also important to stay current on your accounts and pay them consistently.  This includes rent, credit card payments, car loans or any other standard monthly payment.  Lifestyle changes during the process could cause additional paperwork and will slow down the loan process.

Keep Your Credit Consistent

Making a major purchase such as a home might cause you to look at other parts of your financial portfolio.  Even though it may seem like a good idea to get your finances in order, perhaps credit card consolidation or paying off debt, it is not always helpful in the mortgage process.  When your credit is run during the approval process, that score and any open lines of credit are used to determine your loan approval.  If you would consolidate a credit card, or transfer debt during the process, this will cause that credit history to change, which will in turn require additional time to close the loan.  Other activities that could affect your credit score include a new store credit account, joining a new gym, getting a new cell phone, or anything else that would require a monthly payment.  Best practices suggest that you wait until after the loan process has completed to make financial decisions which will affect your credit score.

Work With An Expert

Getting a mortgage loan is one of the biggest financial transactions in your lifetime.  It is critical that you work with an expert to help you through the process.  Your mortgage lender can provide assistance in making sure you get the proper rate for your situation and that you will be able to afford your home for years to come.  They can also answer questions you may have as it pertains to the closing process, taxes, insurance and other aspects of the process of financing your home.  Your mortgage lender is there to help you complete the transaction and secure the financing for you purchase.

If you have any questions or would like more information on the mortgage process click here or call 662-449-1296.