Ok, time for everyone to quit freaking out about the subprime mess. It's HISTORY! Who does this really affect? Think about it .. it affects the mortgage companies that made them and now can't resell them to wall street and now they're stuck holding the bag. They can't get more liquidity and thus they go out of business. Again, that's history.
So how does it affect you if you want to get a new loan? Not at all ... as long as you have good credit, income, etc. True, if you have marginal credit to where you could have gotten a loan a few months ago but can't now, then fix your credit so you can get a loan in the near future. If you have rotten credit you couldn't have gotten a loan then anyway so it STILL doesn't affect you.
Who else does it affect? Investors, those who were trying to over leverage everything and trying to make a quick buck. Again, those loans shouldn't have been made in the first place but because they were, they gave this country a somewhat artificial view of how hot the real estate market was really like.
Bottom line .... many people are sitting on the fence right now in their real estate decisions. DON'T !!! When you look at the overall economy, we have good jobs, low unemployment, good incomes AND LOW INTEREST RATES! Now, because of all the negative media on real estate, prices are starting to come down. Add lower prices to the equation and what do you get??? A GREAT TIME TO BUY!
Here in the Georgetown/Austin, Texas market, we have a very healthy real estate market. It is evident that homes are staying on the market longer but alot of it is because we have a local market listening to national media. Unemployment here is just 4.3%. Good incomes. People being relocated here for work. Low interest rates. Don't let national news affect your real estate decisions in a local economy.
If you have any doubts, always call your Realtor and have a discussion with them. They are in the market everyday and can give you great insight and direction into your real estate decision making.
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