Buying an expensive house is only a good idea if you can easily manage the mortgage payment and can really afford that expensive house.
Remember when buying a house you have to account for other things such as Real Estate Taxes, Water Bills, Electricity, Gas Bills etc as well as maintenance on the house such as roof repairs, plumbing repairs etc.
Real estate taxes on fancy expensive high value homes can run $500.00 to $1,000.00 per month or more although Real Estate Taxes are paid yearly but you have to put that monthly payment into an account where you'll have it to pay the Real Estate Taxes when due.
Only buy a home if you can absolutely manage the mortgage payments, other Utility bill and Taxes.
Don't become house poor where you're eating Ramen Noodles because you have most of your money going towards mortgage payments and taxes.
Even if you qualify for the larger loan for the more expensive house you should always buy a house below your means that you can reasonably afford to buy.