What a lender is willing to lend and what you can truly afford are different things. While the lender may believe that you can swing the payment on the maximum loan they’ll give you, that doesn’t mean it’ll be a good fit with your lifestyle, budget and expenses — especially in your new home. You don’t want to end up house poor — spending almost all your income on the home and strapped on everything else.
Just because they offer it doesn’t mean you have to take all of it. Using a how much house you can afford calculator is a better way to see how much you can reasonably borrow and handle month-to-month.