Yeah, this is how I bought. I looked at what sort of loan terms I qualified for (very favorable), and then figured out what price home resulted in a payment I was comfortable with.

I'm pretty debt averse, so that resulted in me buying "less" house than the banks were willing to fund, but it was in the area I wanted, relatively new, styled to my taste, and from a reputable local builder, so from my POV I couldn't figure out why I'd buy MORE house.

I still live there, 21 years later.