I think your income is good for the lower end of your price range. 3 *140k is 420k, so if you could find something you like at 400k, it isnt outa line. I am assuming you will want to do some work to it as you are prop gonna get a short sale or a REO, so dont stretch too much to just get into the house.
The answer if you can afford this lies in the stuff you left out.
1) Where are you in your life? IF you are 55 and nearling retirment and at the top of your income potential, this may not be a good idea. If you are just outa college and are still in your twenties and are making 140k you are much better off.
2) Where is this down payment coming from? Is it cash in the bank outside of a basic safty cushion of 6 months income? Or are you cleaning out your 401k, your roth, Aunt betties savings bonds she left you, the kids piggy bank and the couch coushins to get it? Remember, you will have to furnish a house, fix some stuff, prob redo the yard and kitchen, get appliances if they are already gone. It isnt cheap. And what happens if one of you joins the other 500+ thousand people who lost their job LAST MONTH. Do you have a safty net?
3) Are you willing to live in the area you are looking to buy in? I could afford a house in Temecula right now, but I dont want to live there. (nothing against those that do) I work in SD and I dont like the 5 mile commute I have now. drive an hour each way???? Id rather move to the midwest and buy a bunch of land and a nice house and deal with snow and hot summers. That is just me. You know you. Are you willing to live 5+ years in that house, with that weather, with that commute, with that school system? If not then emmotionally you cant afford that house.
