Condominiums, Right of First Refusal, Transfer Taxes, and More

By John Aretos, CEO of Police Mortgage

There are a number of aspects to home buying that not everyone understands when they walk into a patrolman credit union location. Condominium units are one example.

With condominiums you have what’s called the right of first refusal. This is something that’s unique to a condominium association. FHA loans cannot have that. When you’re buying a condominium unit and you’re trying to obtain an FHA loan, that’s another layer Police Mortgage has to work out through the realtor.

If the condominium association has a right of first refusal that means they can refuse to accept someone in that condominium based on certain conditions. When it comes to FHA loans, that’s a form of discrimination. So that may mean that the condominium unit you are looking at is not FHA eligible.

That’s just one example of a layer that makes our conversations with new clients so important. As fiduciaries offering home loans for police, we are only as good as the information we are able to obtain from the first responders we are privileged to work with.  We have to learn the details because our loan officers need that information to provide the most accurate quote possible.

Even though pre-approval rates are subject to change, and are not rate locks, it’s imperative to us that a new client walks out of that appointment or hangs up the phone and has an accurate quote. We simulate the payment with all the bells and whistles like taxes, title, and more so our first responders have a truthful picture of what to expect.

When it comes to Police Mortgages, sometimes the monthly payment estimate we provide is higher than our first responders expect. That’s one of the things about homeownership that home buyers, especially new home buyers, need to know. You need to know the fine print.  You need to be aware of the hidden costs. And you need to be prepared if the actual payment ends up being higher than what you originally thought when you first began the home-buying process.  Helping our clients understand all of that is our responsibility and we take pleasure in delving into those details when it comes to police officer mortgage loans.

A good example of a hidden cost is the transfer tax. The City of Chicago has a transfer tax you must pay when you buy a property. There’s also a transfer tax when you sell a property. Let’s say for simplicity’s sake that you buy a $100,000 home. That means at closing, $750 is added to the closing costs due to the City of Chicago transfer tax. The transfer tax is one of those costs that’s missed in the initial assessment with other loan providers. We make sure our clients are aware of hidden costs like that.

We are obligated to make our clients aware of all the estimated costs and fees that are associated with the properties they are interested in buying.  The genesis of that understanding comes during the initial interview. We simulate the whole process when you come to us for a pre-approval.

It can be an intimidating process, especially for new home buyers. No matter what the world says about technology and how they want to automate it, there still needs to be a person, a professional person, conveying that mortgage message. Police Mortgage enjoys that personal touch in guiding you through the process and making sure that you understand every aspect.

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.

Police Mortgage for First Responders Who Are Second To None.