Newsflash: I don’t understand mortgages. Is this a good loan estimate?

First home buyer. Is my pre approval estimate good?Stats:64k salary, no debt, 720 credit, wife & 1 childhouses and condos in our area start at ~$340kWas pre-approved for a $130k loan w/ my $270k down paymentRate is 4.21% APRIs the loan amount based on me saying how much I will put down and telling the lender that our budget is around ~$400k? Or is the loan amount mostly based on my income and creditworthiness?Is 4.2% APR a good rate?I thought we would qualify for ~$150k. I don’t think we can ever buy a house if we can only qualify for 130k and with house prices having risen 100k in our area since last year. Not many homes for a 3 person family–let alone on the market–for under ~400k.


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