How much house you can afford should not initially be tied to how much you can afford (or think you can afford) as a monthly payment. A good rule to follow is 2 to 3 times your annual salary as a start. You can adjust that amount for dual income households.
Buying a home is different from buying a car as there are many added expenses such as property taxes, upgrades and maintenance.
Another good rule to follow is to estimate how much you think a house payment would cost per month and then save that amount for 6 months. If you find it hard to do that, then you may wish to rethink the amount. If you do accomplish that – good news- you will have saved a good chunk of money for your emergency fund. That is one account that everyone needs!