Good luck to you and consider using my free online prequal calculator to determine how much loan you can likely qualify for @ http://www.gregzaccagni.com/RequiredIncomeCalc
I am pretty sure when you get out to the property you will find out why it is priced below market. If it looks like a great deal have your realtor check on similar recent sales in the neighborhood. If it still looks good to you go for it and make an offer! Happy house hunting!