Joe 's Blog

Video Introduction to clients

Joe Gonzalez - 1st Metropolitan Mortgage — Wed, 13 May 2009 14:59:59 -0500

Since new clients don't know me from Adam, here's my way of introducing myself. Check it out & let me know what you think!

Take care,

Joe Gonzalez
1st Metropolitan Mortgage

Don't Make Extra Payments Against Your Mortgage

Joe Gonzalez - 1st Metropolitan Mortgage — Wed, 25 Feb 2009 09:46:31 -0600

For years I have tried to explain to clients that depending on their circumstances it may make more financial sense to pay down debt instead of your mortgage. Liz Pulliam Weston posted an article that I think everyone who pays additional against their mortgage may find very interesting!

Here's a link to the article:

http://articles.moneycentral.msn.com/Banking/HomeFinancing/DontRushToPayOffThatMortgage.aspx

A question you can think about is what is the rate of return on the equity that is stuck in my home? That would be 0!

Joe Gonzalez
1st Metropolitan Mortgage
610-351-7510

Rates are great!!

Joe Gonzalez - 1st Metropolitan Mortgage — Fri, 30 Jan 2009 14:28:27 -0600

Refinance Today!!

Location: PA

Why are you waiting to refinance! Take advantage of today's low rates!!!

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Joe Gonzalez

610-351-7510

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Rate: $1 per item

Location

PA
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Service Area: Pennyslvania

Years of Service: 12

Service Type: Financial

Market Focus: Refiance

VFLYER ID: 2217466

Why haven't you refinanced?!

Joe Gonzalez - 1st Metropolitan Mortgage — Fri, 30 Jan 2009 14:17:24 -0600

Rates are fantastic but they will only last for so long! You need to take advantage while you still can!! Call us today at 610-351-7510 for your free rate quote.

Joe Gonzalez
1st Metropolitan Mortgage
610-351-7510 Office
jgonzalez@1stmetro.net
www.1stmetropolitan.net

Why Rent When You Can Own Your Own Home Instead?

Joe Gonzalez - 1st Metropolitan Mortgage — Wed, 03 Dec 2008 15:18:35 -0600

Description

Some guy is thinking:

"Let's see, I'll pay less money, have my own house, save on taxes, it's a
buyer's market, I can buy a home with little down and the seller can
pay the closing costs. But still I'm not sure if I should buy a home."

You have to be joking right?!

www.rentingisdumb.com
Because renting really is dumb!

Features

Bedrooms:	3
Bathrooms:	1

Location

1030 W. Hamilton Street Allentown PA 18101

vFlyer Id: 2078434

Rates Are Ridiculously Low!!

Joe Gonzalez - 1st Metropolitan Mortgage — Wed, 03 Dec 2008 14:44:12 -0600

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Description

Why aren't YOU taking advantage of the great low rates available today?! Give us a call so we can show you how you can save $$$ on your mortgage today!!

Profile

Service Area:	Pennsylvania & New Jersey
Years of Service:	12
Service Type:	Financial
Market Focus:	Premium

vFlyer Id: 2078388

Exciting news for clients looking to buy or refinance!!

Joe Gonzalez - 1st Metropolitan Mortgage — Mon, 01 Dec 2008 07:37:50 -0600

Here was the report from Xinnix last Friday:

It was an exciting week for mortgage markets! Tuesday, the Fed and the Treasury announced a new program to purchase up to $500 billion in mortgage-backed securities (MBS), and mortgage rates dropped sharply after the news. The MBS purchases are expected to take place over the next few months. The goal of the new program is to lower mortgage rates, and the immediate reaction certainly was a big step in the right direction, as mortgage rates moved significantly lower during the week.

According to the Wall Street Journal, consumers around the country responded quickly to act on the drop in mortgage rates. In many cases, call volumes during the week were far above their recent levels as homeowners rush to refinance.

I can definitely attest to this as we have seen some clients are able to qualify for rates as low as 5.25% with 0 points!! So if you're on the fence, now is the time to act.

Thanksgiving treat from the Fed

Joe Gonzalez - 1st Metropolitan Mortgage — Wed, 26 Nov 2008 11:36:27 -0600

Joe Gonzalez
Branch Manager
1st Metropolitan Mortgage
610-351-7510
jgonzalez@1stmetro.net

A Thanksgiving Treat from the Fed

Looks like the Fed said - "Happy Thanksgiving" - Mortgage Rates Plunge
Finally, some good news for the mortgage industry! In a move to increase credit availability, the Federal Reserve and Federal Home Loan Banks announced that they would purchase up to $600 billion in Mortgage-Backed Securities (MBS), exciting news that sent interest rates for 30-year fixed-rate mortgages plummeting below 6.00% and near the lows for the year!

If you have been on the fence about buying or refinancing a home, now is the time to act. Interest rates are extremely low and home prices in some areas are at 2003-2004 levels. Add to that recent declines in energy prices and lower consumer interest rates, and you have a great holiday recipe for success, but only if you give us a call.

Don't wait until next week. Call us today and get pre-approved. Rates have already been very volatile and this opportunity might not survive the holidays. In many markets, falling prices are bringing out buyers that have been waiting to buy and they are scooping up both bargains and hot properties. Let me offer you some pointers to help you negotiate a great deal and lower your costs to close.

Whether you are looking to buy or refinance, call me today. I'm here to help. If we don't speak before Thursday, however, I wish everyone a happy & safe long weekend.

Why a home office is now worth it! A MUST READ!!

Joe Gonzalez - 1st Metropolitan Mortgage — Tue, 04 Nov 2008 10:15:35 -0600

The other day I read an article on MSN about why we should buy a home. (Home, the mother of all tax shelters)

At the end of the article it brought out a fantastic point that every realtor & mortgage EVERYONE should know!! It is that the IRS has changed the rules & the rules make it advantageous for all of us to utilize our homes as home offices. The benefits are HUGE. Here's some of the info from the article:

Home offices

Here's where, in my opinion, the IRS actually crossed the line. But since it was in favor of the taxpayer, I'm not going to complain.

Let's say you use 20% of your house as a home office and you deduct depreciation and expenses for working in that part of the house.In the past, when you sold your house, 20% of the gain wouldn't qualify for the exclusion because that 20% wasn't used as a "residence." It was used exclusively as your office.

Now, the IRS doesn't care even if you used your home 90% for business as a home office. You can now exclude as much as 100% of your gain, up to the $250,000/$500,000 limit.

You're going to be subject to tax only on the gain to the extent of depreciation taken on the building since May 7, 1997. But that's taxed only at a rate no more than 25%.

Wow! That means, if you qualify, there's no reason not to claim a home office. And I know there are any numbers of people who work out of their homes who don't claim home offices now.

Dorothy was right: "There's no place like home." At least for now.

A free piece of Schnepper advice: You should check IRS Publication 587(.pdf download) on home-office deductions. Also, check Publication 523, "Selling your home."

Renting isn't dumb - why buy something that will be worth less?

Joe Gonzalez - 1st Metropolitan Mortgage — Tue, 04 Nov 2008 08:10:57 -0600

Before you fly off the handle & think that those are my words let me stop you & say that was an email I received from someone that saw one of my ads. My response was in several parts

As your rent continues to rise, your mortgage stays the same.
In 5 years when you are paying an extra $150 per month, you will actually have some equity in your home
When you look at your effective tax bracket after deducting your mortgage interest, let's see how much more you get back which in turn lowers your payment even more
Then there's that one little thing that just doesn't mean that much. It's called pride. Knowing that you actually own the home. Knowing that it is yours. As if that's not enough!

I just don't get it some days. I mean it's the American Dream. I started really looking into it & I found something great on msn.com last night about your home & having a home office:

Home offices

Here's where, in my opinion, the IRS actually crossed the line. But since it was in favor of the taxpayer, I'm not going to complain.

Let's say you use 20% of your house as a home office and you deduct depreciation and expenses for working in
that part of the house.

In the past, when you sold your house, 20% of the gain wouldn't qualify for the exclusion because that 20% wasn't used as a "residence." It was used exclusively as your office.

Now, the IRS doesn't care even if you used your home 90% for business as a home office. You can now exclude as much as 100% of your gain, up to the $250,000/$500,000 limit.

You're going to be subject to tax only on the gain to the extent of depreciation taken on the building since May 7, 1997. But that's taxed only at a rate no more than 25%.

Wow! That means, if you qualify, there's no reason not to claim a home office. And I know there are any numbers of people who work out of their homes who don't claim home offices now.

Dorothy was right: "There's no place like home." At least for now.

A free piece of Schnepper advice: You should check IRS Publication 587 (.pdf download) on home-office deductions. Also, check Publication 523, "Selling your home."

Keys to staying in business in this crazy market

Joe Gonzalez - 1st Metropolitan Mortgage — Mon, 03 Nov 2008 11:12:22 -0600

70% of loan officers that were in the business in 2006 are no longer here per one source. The percentage of realtors that are out of the business can't be much better. While interviewing many realtors from newby's to seasoned pros I can't help but notice that are but a few differences between the two. I didn't say small difference. So I narrowed it down to 4 keys to not only surviving but rather thriving in this business. Here's what I've come up with:

High tech - it seems that those who are doing well in this marketing aren't necessarily tech savvy but they know how to utilize a few very important tools. They realize that a webpage is key & simple solutions like Active Rain can make all of the difference in the world. Remember that most buyers now go to google and will look you up. If I can't type in your name in google & find some good info on you, chances are that I will not feel as comfortable.
High touch - buyers want to know everything about you up front by searching the internet but then after they want to know that this computer generated image is someone real. People are not interested in how much you know as they are interested in how much you care. So get out there, shake hands & kiss babies. Remember to just be real though.
Consistency - one realtor who is currently closing 8 to 10 transactions every month said to me that most of the systems out there work but people don't stick with them long enough to find out. They try it once & EXPECT a ton of business. It doesn't work that way!! You need to CONSISTENTLY perform those actions sometimes for months before you see the fruits of your labor. Postcards, internet, mailings, emailing, FSBO's, blogging etc. all work if you give them enough time.
JUST SHOW UP!! - I remember this agent, we'll call her Jane. When Jane's manager referred her to me she called & said, "I apologize in advance for her behavior but if you put up with her you will DEFINITELY have business." Those who know me know that I'm a very patient person. Well Jane Realtor was just too much for even me to handle. She wasn't very knowledgeable, she wasn't exactly easy on the eyes & she was very difficult to work with & I couldn't understand for the life of me WHY she was so successful for literally decades in the business. When I asked her manager she responded, "She just shows up." No matter whether it was snowing or raining or early morning or late night, she showed up. She always called, always followed up & she always asked too many questions. Her manager then said to me, "You know many times 80% of it is just showing up.

So there it is. Is it easy? Yes & no. Yes because we just have to keep on doing the same things. But no it isn't because we are unindated with negativity everywhere we look. But is it possible? Only you can decide.

Joe Gonzalez

Branch Manager

1st Metropolitan Mortgage

Why Rent When You Can Buy?!

Joe Gonzalez - 1st Metropolitan Mortgage — Thu, 02 Oct 2008 07:59:36 -0500

October 2, 2008

Would someone please tell me WHY people in Allentownare STILL renting when they could buy a home with close to 100% financing & a great rate?! WHY WOULD YOU STILL RENT?!! I JUST DON'T GET IT!!!

www.rentingisdumb.com

BECAUSE RENTING IS REALLY DUMB!!

Because Renting Is Just Plain Old Dumb!!

Joe Gonzalez - 1st Metropolitan Mortgage — Wed, 01 Oct 2008 16:07:05 -0500

Because Renting Is Just Dumb!

REJECT marketing ads - they're funny but they got REJECTED!!

Joe Gonzalez - 1st Metropolitan Mortgage — Thu, 31 Jul 2008 17:21:06 -0500

I like to laugh & I like to make people smile too. But sometimes when it comes to my internet marketing... well I can push the envelope quite a bit. So here are some ads that...well they got the REJECT stamp from my fiancee. I love them & think they're hilarious. But then again I know I'm pushing it a bit far. So here's the reject bin - tell me what you think!!

Don't sign another lease!!

You'll pay less money long term, own a home, save on taxes, it's a buyer's market, rates are great, you can buy with little down and the seller can pay the closing costs.

So renting is kind of like this dog...well you get the picture.

www.rentingisdumb.com

Because renting really is dumb!
_________________________________________________________________________________________

Remember the last time you got screwed?!

It was when you signed a lease.

When you buy a home, you'll pay less money long term, own a home, save on taxes, it's a buyer's market, rates are great, you can buy with little down and the seller can pay the closing costs.

www.rentingisdumb.com

Because renting really is dumb!

__________________________________________________________________________________________

Don't sign another lease!!

The guy in the back is your landlord. You're the patient. This isn't going to feel good. Kind of like renting.

When you buy, you'll pay less money, own a home, save on taxes, it's a buyer's market, rates are great, you can buy with little down and the seller can pay the closing costs.

www.smartpeoplebuy.com
Because smart people buy homes!

Renting is ...how can I put this gently...DUMB!!

Joe Gonzalez - 1st Metropolitan Mortgage — Thu, 31 Jul 2008 17:05:57 -0500

When you buy, you'll pay less money, own a home, save on taxes, it's a buyer's market, rates are great, you can buy with little down & the seller can pay the closings costs!

So when you rent it's kind of like...well you get the picture.

www.rentingisdumb.com

Because Renting Really Is Dumb!!

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in lines such as My homey Dre is a doctor not a lawyer and Yo Ren get the gat show'em where it's at The single was featured with others such as Boyz-N-the-Hood Radio and Ruthless Villain to name a few The first line of the song is sung by (L for Love) which is watched by nearly 10 million people She is the winner of the popular TV show that achieved extraordinary careers throughout the 1990s Buducnost played in RAPAN cup twice in 1981 when they were first in their group and 1985 They also played in The stepped scheme at Home Place Holt designed by Professor E S Prior will be a counsel of perfection to most people Logie Awards of 1968 Award Bert Newton Logie Award Melbourne Television Perfect stub article Stub One remaining though symbolic legacy of Andorra's special relationship with France and Spain is the fact that the Principality still has no postal service of its own- French and Spanish postal services operate side by side although each issues separate stamps for Andorra instead of using their own He also wonders if the Adams family will be able to continue operating the Star At the moment no immediate relative has stepped forward to indicate a desire to keep the 140 year tradition alive

Does Your Lender Actually Get Preapprovals?!

Joe Gonzalez - 1st Metropolitan Mortgage — Mon, 21 Jul 2008 17:16:19 -0500

The other day I was working with my realtor & she asked me, "So are my clients pre-approved yet?" I told her no, they are pre-qualified & I'm waiting for their documents to get them pre-approved with my lender. And I started thinking to myself then, why am I working my butt off getting real pre-approvals? Why do I find myself over & over & over again explaining the difference between pre-approval & pre-qualification? Why? Why? Why?

I mean think about it. When I worked for Countrywide, no knock on Countrywide or the branch I worked for, but I didn't see not one person actually go over the underwriter & ask for a real preapproval. When I worked at the small broker shops, I NEVER saw anyone actually submit the deal to the lender before they had a contract. But everyone was told they were preapproved.

When it comes down to it, it is an unfair advantage if you are saying the deal is pre-approved when it really isn't. I mean let's face it, there are certain clients that are slam dunks. You the guy I'm talking about. The one with 800 credit scores, 50% down, on the job for 10 - 15 years & has no debt. But how about the rest of them? It takes considerably more time to get them pre-approved.

Well I'll continue to do it & continue to explain because you know what? I'll always have repeat business. I will ask something from every realtor who reads this post though. Please ask demand that your lender be honest & tell your clients the difference. In the long run it will help all of us to continue to have smooth on time closings!

Stop Renting Already!!

Joe Gonzalez - 1st Metropolitan Mortgage — Mon, 21 Jul 2008 13:01:17 -0500

Attention Lehigh Valley Residents!!

Find Out What Your Landlord DOESN'T WANT YOU to KNOW at:

www.stoprentingalready.com

Use our FREE & Easy Purchase Assistant at www.stoprentingalready.net to get pre-qualified for a home today.

Don't waste your time - find out EXACTLY what you can afford BEFORE you start looking at homes.

www.stoprentingalready.com

OR

Local Clients Call: 610-351-7510

Not in the Area? Call: 888-271-4132 and Ask for Joe Gonzalez

What Lenders Look for in Home Loan Applications

Joe Gonzalez - 1st Metropolitan Mortgage — Mon, 21 Jul 2008 10:30:10 -0500

Joe Gonzalez
Branch Manager
1st Metropolitan Mortgage
Phone: 610-351-7510
Fax: 610-351-7810
jgonzalez@1stmetro.net
www.1stmetropolitan.net

Once your loan application is filled out and sent to the lender for review, the first thing they will look for is your ability to payback the loan you are requesting. My team and I have a streamlined loan process to help you get your ducks in a row prior to this review. A grand slam loan package is in perfect order and answers all the important questions up front. We know what the lenders are looking for, based on long-term relationships with them and extensive knowledge of guidelines for a multitude of loan programs that are available today.

What is the lender looking for when they review the loan application?

The lender wants to know about your personal financial picture, including savings and credit history and your employment stability. The co-borrower's history is also taken into consideration. The lender also considers the loan amount and appraised value of the home you are looking to purchase. Not every applicant is approved the first time through the process. If the underwriter has any questions or concerns, he or she will require certain conditions be met before they approve the loan. Pre-approval prior to house hunting lets you know exactly how much you are qualified to borrow in advance.

What can I do on my end to make it easier?

Before taking out a home loan it helps to establish a consistent record of paying your bills on time. If you have utility bills that are overdue, bring these up to date. Make sure you are paying credit card installments in a consistent and timely manner.

We can help you evaluate your debt-to-income ratio to determine what mortgage payment will be comfortable and affordable for you on a monthly basis. Aim for having enough savings to cover your down payment, closing costs if necessary, and two month's expenses in case of emergency. We'll help you find the loan program that works for you.

If I just started a new job six months ago, can I still apply for a loan?

A stable employment history is important, but the lender does take human factors into consideration. If you've recently completed college or vocational training, or were released from the military, you have good cause to have a lack of consistent work history. If your profession is seasonal, and gaps in employment are normal in your field, there are loan programs that can work with your situation. If you are a freelancer or do contract work, the lender will look for consistency in income over the last two years.

Consistency is the key word in the lender's mind. But know that lenders have developed many different loan structures to meet the needs of the general public. When your grandparents bought their first home, they probably put 50% down and made a lump sum payment when the note was due. Times have changed, and so have loan programs. My team and I stay on top of current mortgage trends. We monitor rates daily and have a support network of Realtors®, CPAs, Financial Planners and Credit Repair Consultants to lend you additional assistance.

Call me directly for a free consultation.

Planning Your Mortgage and Seeking Pre-approval

Joe Gonzalez - 1st Metropolitan Mortgage — Mon, 21 Jul 2008 10:28:12 -0500

Joe Gonzalez
Branch Manager
1st Metropolitan Mortgage
Phone: 610-351-7510
Fax: 610-351-7810
jgonzalez@1stmetro.net
www.1stmetropolitan.net

The Benefits of a Professional Consultant

Choosing the right lender is a key element to managing your mortgage. As a mortgage consultant, my goal is not just to provide you with a loan, but also to help select the one most beneficial to you and your long-term goals, and then, help you manage that debt over time. There are not many lenders out there who provide this type of personalized service.

My job is just beginning when your first loan closes. I will continuously monitor rates on your behalf, and stay in touch with you to make sure we remain on target with your financial goals.

Seek Pre-Approval

What's the difference between pre-qualification and pre-approval?

Pre-qualification is the starting point in your search for mortgage financing. A quick snapshot is taken which includes income, existing debt, savings, length of employment, etc. All of these factors will then be analyzed to determine your loan eligibility.

Pre-approval is written documentation that shows you have the support of a lender who is willing to finance you. It means an underwriter has reviewed your loan application. Based on your income, debt ratio and savings, the underwriter provides the dollar amount you are eligible to borrow. Now you can shop around for houses that fit into that loan amount category.

Here is the nice thing about the pre-approval: It gives you the leverage to shop as a cash buyer! With a pre-approval in hand, you now have the power to negotiate. The seller will take your offer much more seriously knowing you are already approved by a lender. Pre-approval can also shorten the time it takes to close, making even a lower bid attractive to sellers who are seeking to move quickly.

What will my monthly payments be?

The amount of your monthly payment depends on what loan program you choose. We like to provide our clients with an easy-to-read spreadsheet that narrows their choices down and compares different loan programs that meet both current and long-term goals. You will have the opportunity to select a program you feel comfortable with before you make an offer on a home.

What does it cost to get pre-approved?

Pre-approval is FREE! You have absolutely nothing to lose and everything to gain.

Give us a call to begin your pre-approval process. We have a network of Real Estate professionals ready to provide you with excellent service!
Call me directly for a free consultation.

What Are Points and When Should You Pay Them?

Joe Gonzalez - 1st Metropolitan Mortgage — Mon, 21 Jul 2008 10:26:14 -0500

Joe Gonzalez
Branch Manager
1st Metropolitan Mortgage
Phone: 610-351-7510
Fax: 610-351-7810
jgonzalez@1stmetro.net
www.1stmetropolitan.net

Points are up-front fees paid by the borrower to obtain a better interest rate on a loan. One point equals one percent of the loan amount. And while a lower interest rate may result in a lower monthly payment, it is important to consider how long you intend to be in the loan and to compare current interest rates to historical market trends. This will help you to determine whether paying points is a worthwhile investment.

Let's look at a sample scenario. If you take out a $300,000 mortgage and decide to pay one point in order to lower your interest rate, this would translate into an up-front cost of $3,000. To keep things simple, we'll assume that paying this one point will save you $50 a month. This means it will take you 60 months to recoup the cost of that point. If you decide to refinance or sell the home before the 60-month mark, your money is lost - not to mention the opportunity cost of not having this money invested elsewhere. In this scenario, you would only benefit financially from paying points if you were to remain in the home for no less than 60 months.

It's also important to remember that interest rates run in cycles. When rates are at historical lows, it makes more sense to pay points if you plan to live in the home for an extended period of time. If it's unlikely that rates will go down in the near future, then there will be no need to refinance.

When interest rates are high, however, there is a strong likelihood that they will come down again before too long. Therefore, this is not a good time to pay points. The chances of refinancing in the near future are extremely high, and you will likely not be in the loan long enough to recoup the up-front cost of the points.

Tax deductibility is another thing to consider when choosing whether or not to pay points. For new purchases, interest from both points paid and your mortgage are tax deductible up front. For refinances, however, points are not deductible up front. Instead the deductions are spread out over the term of the loan (unless the entire loan is paid off early), making points more costly in comparison.

Ultimately, there's a lot to consider when it comes to points and whether or not they are a worthwhile investment. An experienced mortgage professional will work with you to determine the best course of action based upon your specific situation. Request a comprehensive cost comparison to see whether paying points could be financially beneficial to you.

If you or someone you know would like to learn more about points and whether they should be a part of your mortgage plan, give me a call. I would be happy to assist you!

Interest Rates - When is the Best Time to Lock?

Joe Gonzalez - 1st Metropolitan Mortgage — Mon, 21 Jul 2008 10:24:28 -0500

Joe Gonzalez
Branch Manager
1st Metropolitan Mortgage
Phone: 610-351-7510
Fax: 610-351-7810
jgonzalez@1stmetro.net
www.1stmetropolitan.net

When it comes to mortgage loans and interest rates, it's never a good idea to gamble. That's why I typically advise my clients to lock in an interest rate at the earliest opportunity. This is just one step of the standardized system we have put in place to ensure the best possible loan experience for each borrower that we work with.

A mortgage loan cannot be closed without a locked-in rate, and there are three main elements to take into consideration:

Interest Rate
Points or fees
Length of the lock

Locking in a rate does not obligate the borrower to commit to the loan until the loan is actually closed. The lock is merely a security measure designed to eliminate the risk of market volatility throughout the duration of the purchase or refinance transaction. As long as the loan is approved and funded before the end of the lock period, the borrower will receive the interest rate quoted.

When a lender permits an extended lock-in period, the borrower will likely face a higher interest rate or additional fees that could be quoted as points. In other words, the borrower pays for the lender to take on the extended risk of being exposed to potential changes in the market.

For example, let's say a 30-day rate lock commitment costs the borrower one-half point, while a 60-day rate lock commitment costs one full point. If the borrower in this scenario needed the extended lock period, but did not want to pay points, then an alternative would be to accept a slightly higher interest rate. In this case, a 60-day lock would typically have a higher interest rate than a 30-day lock.

Our standard procedure is to lock in a rate as quickly as possible. My team and I want our clients to know that while interest rates fluctuate daily, most lenders do not want to lose any business because of it. If a significant rally causes interest rates to drop 0.25% or more, we know that we can most likely renegotiate the rate. In many cases, lenders prefer this option over losing the loan to another lender. On the other hand, if we'd allowed our clients to sit on the fence and not lock in their rate, we would have exposed them to market volatility without a safety net. Then, if rates were to increase, the borrower might no longer qualify for the loan they want - a situation that we want to avoid at all costs.

By knowing our clients' needs and working intimately with them to make the right decisions early on, my team and I are proud to say that we have helped them to achieve their home ownership dreams.

If you'd like to learn more about the loan programs we have available, please call me!

Shopping for the Right Mortgage

Joe Gonzalez - 1st Metropolitan Mortgage — Mon, 21 Jul 2008 10:22:21 -0500

Joe Gonzalez
Branch Manager
1st Metropolitan Mortgage
Phone: 610-351-7510
Fax: 610-351-7810
jgonzalez@1stmetro.net
www.1stmetropolitan.net

Finding a mortgage that's right for you should be easy. There are literally hundreds of options to choose from, including Fixed Rate, Adjustable Rate, Hybrids, Interest Only, Monthly Option ARMs, and Pay Select Mortgages, to name just a few. Mortgages are available at rates ranging from an introductory rate of 1.00% to well over 10.00%. You can finance up to 100% of your home's value and, in some cases, your closing costs as well.

However, because there are so many options available, it's important to seek advice from an experienced mortgage professional who has your best interest at heart. The first step in determining which program is right for you is to ask yourself the important questions listed below. These questions can also help you confirm that you've chosen the right mortgage professional as well, because he or she should be asking you the same questions before trying to put any mortgage in place:

How long do you anticipate living in your home?
Do you expect any changes over the next few years, such as expanding your family or having children go off to college or even move away?
Do you expect any changes in income due to promotions, relocations, retirement, inheritance, or pensions?
Are you expecting a change with regard to your investments?
When it comes to investment strategies, are you conservative, aggressive, or somewhere in between?

The reason these questions are so important is that different loan programs will offer specific benefits that will appeal to borrowers at different stages of life. What one homeowner might find desirable might cause another to reach for the Rolaids®.

In the end, be sure you are given a complete picture of exactly how much your mortgage will cost you over the period of time you anticipate having the loan in place. This is the single most important factor you should consider when shopping for a mortgage. Not only does this data illustrate the bigger picture of your financial goals, it allows for adjustments should things change a little sooner than expected. A good timeframe for this projection is anywhere from three, five, or even up to seven years.

When shopping for a mortgage, you should always evaluate your choices carefully and consider how they will fit in with your long-term financial plan. Answer the important questions listed above and call me for a free consultation. Together, we'll find the program that's best for you.

The Federal Reserve and Mortgage Rates - Understanding What Causes Interest Rate Movement

Joe Gonzalez - 1st Metropolitan Mortgage — Fri, 18 Jul 2008 12:42:56 -0500

Joe Gonzalez
Branch Manager
1st Metropolitan Mortgage
Phone: 610-351-7510
Fax: 610-351-7810
jgonzalez@1stmetro.net
www.1stmetropolitan.net

The Federal Reserve constantly evaluates the US economy and, when necessary, takes steps to address inflationary concerns and avoid economic recession or depression. The mass media, in turn, reacts by providing a wide range of opinions and interpretations of the Fed's monetary policy. This can make it very difficult for consumers to decipher how such actions will influence interest rates in general and mortgages in particular.

And although actions of the Federal Reserve can have a direct impact on the Prime rate, mortgage interest rates are dictated by the trading of mortgage-backed securities, which are similar to bonds and trade on a daily basis. This means that the real dynamic at the heart of interest rate movement is the competitive relationship between stocks and bonds.

Stocks, bonds, and mortgage-backed securities compete for the same investment dollars on a daily basis. There is literally only so much money to be invested. When the Federal Reserve feels that interest rates need to be decreased in an effort to stimulate the economy, this reduction in rates can often cause a stock market rally. When the market becomes bullish, the money to invest in stocks comes from the selling off of other investments, including mortgage-backed securities.

Unfortunately, when mortgage-backed securities are sold off to fuel stock market rallies, this causes interest rates to go up, not down.

Historically, there have been many instances where the Federal Reserve has increased interest rates, arousing fears that corporate profit margins would be affected. This resulted in stocks being sold off, leading money managers to search for a place to invest their newly liquidated assets until the next market rally. One such safe haven has been mortgage-backed securities, which cause mortgage rates to drop.

The daily ebb and flow of money is what matters most when it comes to the movement of mortgage interest rates. I make it a point to continuously monitor interest rates for my clients and advise them of opportunities to manage their mortgage debt at a better rate. This is the foundation of my business model as a trusted advisor.

If media reports have led you to second guess whether it's a good time to purchase a new home, give me a call. We'll analyze your financial situation together and create a plan that's right for you.

How Purchase Loans Are Made - A Step-By-Step Walkthrough

Joe Gonzalez - 1st Metropolitan Mortgage — Fri, 18 Jul 2008 12:38:24 -0500

Joe Gonzalez
Branch Manager
1st Metropolitan Mortgage
Phone: 610-351-7510
Fax: 610-351-7810
jgonzalez@1stmetro.net
www.1stmetropolitan.net

1.		Pre-approval - Get pre-approved for a mortgage and know in advance exactly how much house you can afford. Completing this step will also increase your negotiating power since you'll be viewed as a "cash buyer".

2.		Loan Search - Put yourself in the hands of an experienced mortgage professional, someone who will help you to determine which financing options best suit your needs today and in the future.

3.		Loan Application - It's crucial to supply the lender with as much information as possible, as accurately as possible. All outstanding debts as well as assets and income should be included.

4.		Documentation - Paperwork supporting the application must also be submitted. Information commonly sought includes pay stubs, two years' tax returns, and account statements verifying the source of the down payment, funds to close and reserves.

5.		The Hunt - Begin shopping for a house. Once you find the right one, the terms of the sale will be negotiated, including the price and potentially the terms of the loan being sought.

6.		Appraisal - Lenders require an appraisal on all home sales. By knowing the true value of the home, the borrower is protected from overpaying.

7.		Title Search - This is the time when any liens against the property are discovered. A lien may have been placed on a property to ensure payment of outstanding debts by the owner. All liens must be cleared before a transaction can be completed.

8.		Termite Inspection - While most purchase loans do not require a formal inspection for termite and water damage, some loans (especially government loans) allow for the possibility. If problems are found, repairs may be necessary.

9.		Processor's Review - All pertinent information will be packaged by your mortgage professional and sent to the lending underwriter, including any explanations that may be needed, such as reasons for derogatory credit.

10.		Underwriter's Review - Based on the information put together by the loan professional, the underwriter makes the final decision regarding whether a loan is approved.

11.		Mortgage Insurance - Many lenders require private mortgage insurance when borrowers put down less than 20 percent on a loan.

12.		Approval, Denial or Counter Offer - In order to approve a loan, the lender may ask the borrowers to put more money down to improve the debt-to-income ratio. The borrower may also need a bigger down payment if the property appraises for less than the purchase price.

13.		Insurance - Lenders require fire and hazard insurance on the replacement value of the structure. Flood insurance will also be required if the property is located in a flood zone. In California, some lenders require earthquake insurance on condominiums.

14.		Signing - During this step, final loan and escrow documents are signed.

15.		Funding - At this point, the lender will send a wire or check for the amount of the loan to the title company.

16.		Confirmation of Funding - The lender authorizes the disbursement of loan proceeds.

17.		Closing - Documents transferring title will now be officially recorded by the County Recorder.

18.		Congratulations, you are now a homeowner!

If you'd like to learn more, please give me a call. I'd be happy to speak with you!

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Joe Gonzalez
1st Metropolitan Mortgage
1030 W. Hamilton Street Front Office
Allentown, PA 18101

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How Much Money Should You Borrow?

Joe Gonzalez - 1st Metropolitan Mortgage — Fri, 18 Jul 2008 12:36:15 -0500

Joe Gonzalez
Branch Manager
1st Metropolitan Mortgage
Phone: 610-351-7510
Fax: 610-351-7810
jgonzalez@1stmetro.net
www.1stmetropolitan.net

While it might be tempting to borrow whatever amount of money your lender is willing to give you, it's important to think carefully about how much you'll actually need to borrow in order to purchase a new home. From the down payment to taxes to insurance and interest rates, there are many factors to consider when making this important, life-changing decision.

Contrary to popular sentiment, there is no standard formula for accurately calculating the specific dollar amount you should borrow when purchasing a new home. Many websites do offer special borrower calculators that claim to factor in important variables, and yet final results vary vastly from one site to the next. Other websites offer general rules of thumb, suggesting that you should never borrow more than 2 1/2 to 3 times your gross annual income, or that 28%, 32%, or even 40% is the maximum amount of debt you should ever take on.

And, while these insights may be helpful as you begin thinking about the overall borrowing process, meeting with a reputable loan professional and getting yourself pre-approved (not pre-qualified) is really the only way to know the exact amount of money you can and should borrow. By getting pre-approved, you not only increase the chance of finding the perfect house for your needs, you also become a "cash buyer", instantly increasing your bargaining power.

As a mortgage professional, I see my role differently than a traditional loan officer. While my job is to match you with the best mortgage available for your specific needs, I feel that it's also my duty to make sure it's the most responsible product as well. After all, what if something unforeseen or unexpected were to occur? What if you have an accident or you lose your job?

Whether you choose to work with me or not, be aware. A lender will often offer you the maximum amount of money that you qualify for, whether you actually need the full amount or not. Because of this, it's vital to sit down with a professional you can trust to figure out your complete financial picture.

If you or someone you know could benefit from this type of free consultation, give me a call. I would be happy to assist you!