Buying a home can be a daunting experience, and choosing the right mortgage is one of the most important decisions in the process. There are many different types of mortgages that come with various terms and rates, and this is why consulting with a mortgage professional who understands and can offer a multitude of options is critical.
Jon Lamkin, Vice President of Guaranteed Rate in Parsippany, is one such person. A loan originator for over 20 years, his communication style and attention to detail gets his clients to successful closings. He has been named one of the Top 100 Originators in the Country for last 5 years.
“I listen to what people say and I'm more concerned about how much they want to spend on a monthly basis versus how much I can approve them for,” he says. “Consumers have a lot of financial responsibilities, and I try to keep them close to that monthly payment they are comfortable with versus just trying to approve them for the maximum amount possible.”
Initially, he doesn’t focus on mortgage rates and products, but instead wants to get an understanding of details such as whether one person is buying the house, or if two, do both currently work, and/or is one going to possibly stop working to start a family? Does the client have students loans, or other debt, that needs to be paid?
Depending on a client’s situation, there are certain mortgage products that fit better with their lifestyle and finances. He offers traditional 30, 20 and 15 year fixed programs in addition to 10, seven and five-year ARMS. Many of his clients have taken advantage of his Rate Reduce Program that can significantly lower the rates and payments for up to three years, which make great financial sense since they will most likely refinance in two to three years
Unlike traditional banks that often offer limited choices, Guaranteed Rate, as a correspondent lender with relationships with over 50 different financial institutions, can offer over 3, 000 different options.
Jon has two top pieces of advice: Number one, get pre-approved for a mortgage before even looking for a home, and number two, buy now and don’t wait for home prices to come down.
“Consumers have to realize that the longer they wait to buy a home, the higher the price they're probably going to end up paying,” he says. “As interest rates come down, which they will eventually, there will be a higher demand. There's going to be a ton of new buyers hitting the spring market. Right now, consumers are competing with fewer people.”
Rate.com/Branches/NJ/Parsippany/4-Century-Drive.