By John Aretos, CEO of Police Mortgage
The Chicago Patrolman Credit Union philosophy has long since focused on encouraging wise money management and that, of course, includes the understanding of credit scores. I think if you’re buying a home just to make your credit better that that’s the wrong reason.
However, if a first responder coming to us has previously had a mortgage and he or she paid it on time, that’s the first thing we’re going to look at. Paying a mortgage on time will absolutely help your credit score.
Just having credit and using it responsibly helps your credit. The perfect scenario for a first-time home buyer is somebody who has an auto loan and has paid on it for more than two years and has had a credit card and they’ve paid it on time for more than two years. Or maybe he or she has had a student loan in the past that was paid perfectly. Paying some type of installment loan on time on a regular basis also looks good from a credit standpoint for the first-time home buyer.
Obviously, for somebody who’s actively in a home now and they want to buy a new home, we’re going to look at the mortgage payment first. Then we look at the auto loan. Then we will look at other loan payments. That’s what our experts at Police Mortgage will generally do.
Your revolving debt has the biggest negative impact on you. If you borrow money on a mortgage loan, it’s a mortgage debt. It’s going to have a different impact on your credit score, both positive and negative. An auto loan or a signature loan is considered installment financing, versus a revolving account, which is a credit card or a line of credit.
At the bottom of the hierarchy is a revolving account that can be jacked up quickly. It could be a situation where you’re paying interest for life until you’re dead if you run up those credit cards. That’s pretty much the worst thing you can do, especially if you’re a law enforcement first-time home buyer.
At Police Mortgage and the National Police Credit Union, we advocate responsible use of credit. We understand that people have to drive, so they’re going to borrow money to buy a car. When a car loan is paid on time that’s absolutely good for your credit. And mortgages, of course, have the greatest positive impact to your credit when paid on time.
If you don’t pay your mortgage, you probably need to talk one of our partners like Gwen’s Helping Hands or use our complimentary services that are part of the Financial Planning and Education Center at the Chicago Patrolmen’s Federal Credit Union.
The practical side of credit and credit scores is that you need to borrow money but you don’t need to or have to over borrow. You have to be responsible with money and credit especially.
Now, one interesting question is “What is the definition of a first-time home buyer?” It’s somebody who hasn’t had an ownership in a home in the last three years.
So, it is possible to have people who bought a home 20 years ago. They sold their home. Then they rented for years. If they get back into the home market years later they are technically first-time home buyers again.
Some people declare bankruptcy. They’ve had problems in the past such as divorces. This is something we have deal with when it comes to police home loans. When they come back into the market three, four, five years later they’re first-time home buyers.
Fortunately, time heals all wounds when it comes to credit reports. If you didn’t declare bankruptcy or had a foreclosure, but you had some spotty credit in the past, you have to have at least 24 months of good-pay history when trying to obtain a mortgage.
At the end of the day, if you have perfectly paid on your car loans and your home loans that is going to be good when you come in for a police officer mortgage. When we pull a tri-merged credit report – that is TransUnion, Experian, and Equifax – we’re going to see all that. Things just become much more difficult if you’ve defaulted on a loan.
The most important thing to remember about financial literacy and education, is we’re all about wise money management. Don’t be afraid to come talk to us, whether it be in person or on the phone. Regardless of your situation, talk to us because Police Mortgage has the knowledge and the expertise to guide you.
Police Mortgage specializes in conventional mortgages, purchase money transactions, FHA loans, and VA loans. Led by founder and CEO John Aretos, Police Mortgage is known and respected for providing clients with exceptional service, customized terms, quick and easy closings, and low money down options. To learn more about Police Mortgage, go to www.policemortgage.com or call 312-499-8878.
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I have my bachelor’s in business administration and have been involved in the banking industry for over 10 years. During this time, I managed two of the Chicago Patrolmen’s Federal Credit Union locations prior to transitioning to Police Mortgage. I have family members who are police officers with the Chicago Police Department. My work has been very rewarding, and I take pride in having assisted countless members and their families with their financial needs and financial wellness. My hobbies include exploring new restaurants in the city and running for marathons that support pediatric cancer foundations and Chicago Police Memorial Foundation’s Run To Remember. I come from a large family primarily from the south side of Chicago and love to share all the diversity and beauty the city has to offer with my two children.
I am honored to grow up in a multi-generational family of Chicago Police Officers. I joined Police Mortgage in the summer of 2020 and love the opportunity to help both first-time buyers and repeat clients alike achieve their dreams of purchasing a home. Having been born and raised in the south suburbs of Chicago, I happily live in the Lakeview neighborhood today. Along with my two younger sisters, I am a graduate of the University of Illinois at Urbana-Champaign and a lifelong Chicago Bears fan. I have a strong passion for food and love exploring the vast array of restaurants throughout our city. Nothing makes me happier than spending a summer afternoon on a golf course with family and friends!
I joined my brother at Police Mortgage as a loan officer in August of 2021 after a 10-year career in sales and marketing. Most recently, I worked as a Senior Account Executive for Ricoh North America, an office electronics company, where my main responsibilities were building new client relationships and maintaining over 400 existing customer accounts. I believe my work experience has transferred over to the mortgage industry well, because I am able to multi-task effectively while working with multiple customers. The skillset I learned in my previous employment allows me to stay organized and to manage my time well for my customers. My number one goal is always to make the loan process as quick and painless as possible for our borrowers. I am excited to further develop the Police Mortgage brand with my brother. It is a unique situation, and I believe working in an office together allows us to help our borrowers even more due to streamlined communication and our ability to help each other with our respective files. I like to spend my free time relaxing, watching sports, exercising, going out to eat with my wife, and trying to keep up with our three daughters – all under five years old!
After graduating from the University of Missouri in 2015, I moved to Chicago where I began a career in marketing at a firm called Ansira. I sought a career change and contacted Police Mortgage, where I was first introduced to the mortgage industry. I have spent the last 5 years training with our CEO, John Aretos, who has taught me all of the intricacies of the mortgage process. I love finding solutions for our clients to help them purchase the home of their dreams. I feel a huge sense of accomplishment when helping homebuyers, especially first-time homebuyers, all the way through the loan process, from pre-approval to closing day. I recently moved back to my hometown of St. Louis, where we opened a new office. I am excited to help start this new chapter for Police Mortgage. My wife, Megan, and I are happy to be back in our hometown. We are always checking out new outdoor events such as music or food festivals – anywhere we can take our dog, Remy!
As the CEO of an organization associated with serving the Police and their loved ones, I am privileged to play a role in helping our clients achieve their life’s financial goals. Our mission is to make the home buying or refinancing process as comfortable as possible, providing our clients with competitive products and excellent service.
I was born and raised in the Chicago metropolitan area, and I have a deep-rooted love and appreciation for the diverse culture which makes our city so special. My two older siblings and I grew up working in our parent’s restaurant, which instilled a work ethic and sense of family that I carry with me to this day.
I am a graduate of Indiana University and have been involved in the mortgage industry for nearly 25 years, helping thousands of clients save money or finance the home of their dreams. My passions are passing down my love of food, music, art, snow skiing, and red wine to my three children, who motivate me to be a better person each and every day!
