Many home buyers, especially first time home buyers, will try to buy as much house as they think they can afford. If they are smart, they will get pre-approval on a loan amount before they go house shopping. The problem may come if they actually use the total pre-approval amount as "permission" to buy a house.
People who do this can end up being "house poor". That means they become slaves to their house payments. To get a federally insured loan for 30 years, your mortgage can not be higher than 29% of your annual gross income. But people who spend that much are pushing the limits on their budgets.
When buying a home, keep in mind that your other desires will also increase. Things like home improvements, furnishings, and increased taxes and insurance can all take you from a very good place, to a challenging position. Buy carefully, and be conservative.