Hope this helps. There are obviously multiple solutions to your mortgage choices - your CPA and lender together can help with those.
Please use the following form to find out how much you can afford. Also, taking into consideration how secured your job and always have at least a year of emergency funds for rainy days to live safe and happy.
What I ususally do is backfill.
I go from what I make each month, figure out my regular must have living expense (food, utility, transportation, entertainment, etc);
minus big ticke items such as car expense and insurance; school tuition, etc.
minus have to have entertainment, travelling expenses (that's important too)
minus how much you want to save
What's left will then be what you can spend on mortgage, house insurance, property tax and other potential expenses assocated with owning a home; don't forget the maintenance expenses for you home.
That's how I find out how much house I can afford.
Your job first off is to consider how much you are comfortable spending each month. Make sure and include the loan payment, property tax (1.14% of purchase price), and home insurance. Inculde HOA dues if you are looking at condominiums. This number needs to be decided by you; not your lender, Realtor, or a website.
Once you have the monthly payment amount decided, you can shop for a loan. The final loan amount will vary depending on which loan product you choose as the interest rates will vary. This is where your loan consultant comes in. They will work with your numbers to get you the loan that best suits your needs.
Just remember that you are in control. I would stay on the conservative side.