Approved is not the same as comfortable
Underwriting approves a maximum based on ratios. It does not know about your travel, your childcare, your retirement contributions, or the fact that you like weekends.
The healthier approach is to name a payment first. Look at what you save each month today, decide how much of it you are willing to convert into housing, and use that as the ceiling.
What the payment includes
Principal and interest are only part of it. A realistic monthly figure includes taxes, homeowners insurance, mortgage insurance if applicable, any association dues, and a maintenance allowance.
A common planning figure for maintenance is one percent of the home's value each year, set aside monthly. Older homes and larger lots ask for more.
Debt to income, briefly
Lenders compare your total monthly obligations to your gross monthly income. Many loan programs allow ratios that feel high in daily life, because the calculation uses gross income and ignores everything not on your credit report.
Use the ratio as a guardrail, not a goal. Borrowing meaningfully below your maximum is the single most reliable way to enjoy owning the house.