CA vs TX

[Wes Brumit]

Im just curious. For everyone out in CA or even the NE (Boston, NY), how does a person 1. Get financing for a home. And 2. How are the lenders calculating what someone can afford? I know the price of a home is dependent on the location but from watching some of the TV programs a typical 3/2 1500 sqft cost roughly $400k. That same home in my area of TX would be about $150k. Lets also assume the buyers are the typical consumers 2 earner income make $120k between them. How would they be able to afford anything in CA?