Just got a house under contract, am I crazy?

[Chris Paez]

This will be owner occupied and is double the size of my current home. We are getting at 20% off retail value direct from the owner. Does that even mean I'm getting a deal in the face of this recession? 

This home is in a A class neighborhood in a suburb of Los Angeles. Im fine living here for the next 10 years with my growing family, so Im pretty secure in waiting out a downturn. Either way, I'm feeling the pressure. Escrow deposit is being made tomorrow so I'm tripping out if its the right thing to do...

I've already had a lender go through my financials with a fine tooth comb, but I'm also weary about the banks coming through on the loan...

Any input or guidance from this awesome community would be greatly appriciated.