To me what home ownership represents within a financial plan is stability. I think especially for police officers, firefighters, and EMTs owning a home is seen as stability because they are dedicated to a cause that doesn’t necessarily correspond with income. It’s a vocation.
For instance, if you are a police officer in Chicago you have to live in the city. So, generally they know that they’re going to be in the city for a period of time, presumably their entire career. That’s why advocating for home ownership is important for us at Police Mortgage because it lends to the whole overall stability for that law-enforcement family.
That doesn’t mean that everybody should do it. It doesn’t mean that everybody can do it. It just means that within a financial plan home ownership is really important.
I also don’t think that it’s necessary to own two homes or three homes to create a situation where you’re earning rental income. That is a mistake I think a lot of the younger homeowners make. We do get quite a bit of folks inquiring about police home loans to buy income properties. For first-time homebuyers that rarely is the way to go.
It may make some sense with a two-unit property. That is a little more common in Chicago than in some of the other markets where Police Mortgage does business. In this situation, the property has two units and you’re living in one unit while renting out the other. That other unit is providing rental income. In those situations, it absolutely pays to do that. And there are ways for Police Mortgage to help you do that, through FHA most likely.
We have the opportunity to present to a number of probationary police officers. We advise them about saving money, especially through their deferred comp programs. Some of these folks, believe it or not, come to us from the professional world. They may already have an IRA or 401K.
Police Mortgage continually advocates for financial awareness and financial responsibility. The homeownership piece is a large part of the stability. I think it’s more important for a person who is putting their life on the line every day, and doesn’t know what the future may hold, to have that stability.
It’s important to come home. For first responders, we always want them to come home. Are you coming home to an apartment that you hate where you’re paying rent and you’re resentful of it? Or are you coming home to a house that maybe you had to make some sacrifices for but it feels like home?
While it may not have been the ideal time to buy that home, looking back on it a few years later, you’re happy as heck that you did it. Then the rest of the financial planning begins.
When we go to police academies, the younger folks don’t necessarily understand the value of using their deferred comp and contributing it to it as much as they can. We talk about it at a time when they’re not thinking about that. Deferred comp is probably not on their radar. What is may be getting through the next day.
How do you eat an elephant? One bite at a time. It’s our job at Police Mortgage to teach how to begin taking those bites. It’s our job to provide options.
It comes back to discipline and sacrifice. Those who listen and learn from us start to build the stability that they will need from the first day on the job.
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, call 312-499-8878.
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