Purchasing a home within one's comfort level at a price that makes the most sense. My intent is not to insult any buyer. I am somewhat conservative in terms of home prices, buyers purchasing power and buyers limit. Allow me to tell you a little history of my experiences. When real estate went to the dogs... I kept going and found a way to help distressed homeowners through short sales of their homes. The most common theme that brought these clients to their knees financially was loss of income either to reduced hours, benefits, complete loss of job, sickness or death. When they purchased their home it was typically based on two salaries. Granted it afforded them the ability to purchase in an area or price range that one salary did not allow for. Unfortunately it set up thousands and thousands and thousands of home buyers for future disasters. Then came the liar loans and refinancing that kept pulling equity out of their home. You know the rest of the story...

Fast forward to today. I was recently contacted by former clients who did a short sale due to one spouse loss of job due to lay off and inability to find another one for a few years. That was approx 4 to 5 yrs ago. They are now ready to purchase again. But this is what they did. They found at the time of losing their a home a reasonable place to rent. They have saved up money once husband found another job that was set aside to purchase another home. I sent them to a lender who reviewed their credit, verification of funds who stated they could easily purchase up to $500K or higher based on both salaries.

HOWEVER this couple learned a very hard lesson and as a result are determined to find a home with mortgage payment based on one salary... They see the value of home ownership, they are concerned re: the increasing rent rates but they do not want to set themselves back up for a repeat as in past if market turns again or one of them loses job or benefits etc. They will put 20% down so as not to have a 2nd loan. They realize it may not be the house of their dreams but they experienced the house of nightmares when forced to short sale. They see the value of investment. The pride of home ownership and the basis for setting themselves up to better the chances of keeping a home if another economic downturn should occur. I so honor that philosophy...

Check with a CPA, do the numbers and ask yourself this question-"Can we still make mortgage payments on this home price if one of us loses a job, gets sick etc"... there are no guarantees in life but there are steps one can take to lessen risks. Happy House Hunting!