The Silver Lining of the Credit Crunch

Mortgage and Lending with Millenium Home Mortgage LLC NMLS # 132253

Does anyone else think credit of all kinds was just too loose and easy?

We do not want those days back, right?

The combined credit card debt of Americans built to $1 trillion as the savings rate dropping into negative territory.  Buy it fast, buy it now!  Right from college into a McMansion with two Beamers in the garage and a  flat screen tv.  Lots of shiny, shiny stuff!  and zero real wealth.

Leverage (credit) exacerbates gains and losses and isn't that where we now are?  Personally, i like a little stability but then I am a dull guy especially when finances are concerned.  I like low risk when a family's home is on the line.  Buy the big home next time.

Yet I hear the bailout is intended to help loosen credit.  Okay, but it is important that we find a balance and not invite the same problems.

Now for the silver lining - I hear more now from customers who want to make sure their mortgage payment is affordable, who are 100% sure they want a fixed rate loan, who want to build a resilient financial plan and who understand how important their credit rating is.  Instead of insisiting on maxing out their purchase price, they call me with a conservative target payment already in mind.  Music to my ears.  This is great stuff, this is what it takes for good long term financial health and prosperity.

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