I agree with asianautica. My limit on a home was based on getting the biggest nicest home in a very good area. My income allowed for a $300K mortage(30yr fixed). I had the 20% for a downpayment. So I searched for homes in the 400K-420k range. Early 2007, I found that the only homes available were 1200sq ft homes for $400k in these nicer areas. I almost bought at this time. Now homes in this area are averaging $430K for homes 2200-2500sqft. I shop acording to what my price range is.
