Going to the Maximum

By John Aretos, CEO of Police Mortgage

Does it make sense to walk into a patrolman credit union, get approved for the largest police home loan your credit score and income will allow, and buy as much house as possible.  Well, that’s a personal decision. 

Part of that decision is about your family’s circumstances. How many beds and baths do you need? Is your family expanding with a baby on the way?  That has to do with the clients’ situation and their personal decisions. I’m not going to advise on that and tell anyone what they need.

When you come to Police Mortgage for a pre-approval, we will tell you what your maximum is. We’ll tell you your ceiling, how high you can go. We’ll tell you what the monthly payment would look like in that situation.

I have always advised my clients not to be in a situation where you are going to sweat that monthly mortgage payment every 30 days. At Police Mortgage we are happy to advise on how to scale back from the maximum to lower that monthly payment. We’ll tell you what range to look in. We don’t  advise on what to buy or how much to spend, but we tell you your maximum amount and educate our clients on their choices for a monthly payment at different loan levels.

As we continue to say, every conversation is very specific to each first responder’s needs and situation. There will never be a general pitch like, “Yeah, let’s take you to the max and go for it!” 

We will always do what we can to help our clients accomplish their goals. If someone is concerned about what they can afford, we will explain every detail and go through multiple scenarios.  At the end of the day, it is their choice but we will empower them with the knowledge of a monthly payment they can be comfortable with based upon their income. 

Today, I think most clients are knowledgeable and are going to make prudent decisions concerning what they can comfortably afford. However, if someone is pushing the maximum we have no problem explaining why that could be tough. 

As fiduciaries, we want to protect the sanctity of the preapproval by creating a cushion on the high side. When we do that, if something does happen we can be better prepared. Maybe a client decides later to look for a different home where property taxes are higher. Maybe something happens to interest rates where the monthly payment will increase. We want to have that cushion so a change doesn’t take a client from qualifying to not qualifying.

We are never going to push mortgages for police that make our clients feel uncomfortable.  We want to leave room there for the approvability of the transaction. If rates rise or if there is a counteroffer we will be happy that we started on the conservative side. 

Most of the folks we have the privilege to work with are putting their lives on the line every day. We don’t want them to have to sweat their monthly payment. It’s a personal decision as to how much house they want to buy, but we’re going to advise in a way that keeps our first responders within a comfortable range. I think our clients appreciate that.

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.