Many people don’t understand that good credit is something that anyone can obtain. Many people let this ideology take over and never fulfill their dreams of breaking generational financial curses. Solomon Lacy III has turned the tables by establishing a program that has helped over 100 minority families obtain those goals. Lacy’s program was designed for people who have no idea where to even start when it comes to establishing the credit needed to purchase property, a vehicle, or start a business. Thankfully for us, he has allowed me to include some of his tips in this article. 

In the minority community, when it comes to obtaining loans, many believe that there is an implied bias from banks that they won’t be able to qualify for a loan. And unfortunately, in many cases, that might actually be. However, Lacy understands the industry so well that he was able to create a checklist that would make it almost impossible for anyone to get denied a loan. The idea is to make it so that they’ll have no choice but to give you the loan because you’ve done your due diligence prior to, such as having employment, building credit, saving for a down payment and/or closing costs. “If your credit is right, and you marked off the checklist, you don’t have to worry about getting denied. The way to avoid getting denied for a loan is by simply following these steps prior to filling out the loan application.” This is exactly how Lacy’s program helps people. “My goal was and is to show (them) that when you look good on paper you can’t tell who’s who. The major difference in mortgage loan approvals vs denials is in the 5P’s; prior planning prevents poor performance. The lack of education in some of these areas prevents us from getting the jump start,” said Lacy. He sets people up for success by first having prepared them to go in with confidence and a strategy that’s going to get them their desired outcome.

The first thing to note when it comes to applying for or obtaining a home loan is essentially knowing where you stand, or your financial report card. Then, to know what the lender requirements are and completing their checklist. Next, would be to have 4-5 primary tradelines. A good credit mix is necessary especially when trying to buy your first home. If you don’t have these tradelines, it’s best you start working on them as soon as possible. Knowing what type of loan you qualify for is very important as well. Just because you can’t buy conventionally, you should know that there are other programs to achieve homeownership, like FHA or USDA loans. FHA loans are more common for first-time buyers and have lower down payment requirements. Always check for first-time homebuyer grants available, stay on top of your debt to income ratio, and lastly, please make sure you hire an experienced Real Estate Agent to save you the leg work. This is often overlooked but their expertise is as extremely essential in the home buying process. All of this is great to know but without changing your bad credit habits, sacrificing, and implementing all of this information, it’s mostly useless. Credit is a system determined to see how responsible you are. So, regardless of how much money you make or whether you can afford the monthly payments and then some, you won’t be able to get a loan without good credit. Lacy even said so himself, “Credit doesn’t matter to some people until they run into something they can’t buy outright. Then, their only option is to finance and most can’t because they have stayed away from building credit by always using their cash. Now, they are stuck with an unreasonable down payment option or seeing that they are able to afford the monthly payments if financed. However, they can’t get approved because you also need to meet the proper credit requirements to obtain a mortgage loan.” That’s why Lacy developed the program. He wants to educate the communities that weren’t taught these things. He believes anyone is capable of owning their own home, vehicle, or obtaining funding for their start-up with the right information and training. 

Lacy continues to help people in need of financial guidance and those trying to obtain funding and loans. The ins and outs of qualifying for funding and eliminating misconceptions about obtaining loans is something he deals with on the daily. One of the main issues will always be a misunderstanding when it comes to borrowing money from banks. He mentions the fact that “if you don’t seek out the information and just rely on praying and waiting for it to come, it won’t. Prayer without work is just a dream! If you really want that house, getting a loan is obtainable! It’s just the checklist. It has nothing to do with what you’ve done or who you are. As long as you got the boxes marked off, you should never worry about getting denied.” This is why Lacy pushes so hard to inform the misdirected and provide helpful knowledge. He’s always understood even from his early financial/credit shortcomings, that it’s simply a lack of education and exposure that makes all the difference. He’s made it his mission to fill that void for the people who need it. That’s what makes Solomon Lacy III so special. So, if you’re looking to obtain funding for anything, whether it may be a house, car, or even your business, you’ll know exactly who to go to.