I am having a really hard time deciding between three houses.  The more expensive houses are $300 more a month, for around the same square footage. The cheaper house is in a new development. This is our first home and I am worried we are getting too expensive of a house. 

After you pay all of your bills and expenses, how much money do you have leftover each month?  We would have $800.00 and I'm not sure if that's enough?

Is it better to have a nicer/bigger house that I love OR more money in my pocket each month for a nice house that I don't love?

I think you should continue to search for a house that is less money but that you also love. You can have both!  You have to love your home, but it shouldn't leave you house poor.  I say keep looking!

I would deff. say keep looking because those unexpected costs can really add up!

Are you talking about renting or buying? If you mean buying, are you certain about the price? Sometimes sellers accept lower offers.

If this is definite, I would look at your current income and projection. To me, $300 a month isn't a big deal, but if you have job insecurity (and so many people do these days because of an unstable ecomony), it may make a significant difference. Are you expecting some sort of raise in the next year or two? If so, stretching yourself for a little to have your dream house might just mean temporary tough times and belt-tightening, but no serious bank account damage. Only you know your likely scenario, and you have to be the one comfortable with your situation. Good luck!

That's not enough for me, personally. I believe the rule of thumb is that your house and house-related bills (insurance + utilities) should total 1/3 of your monthly income.

Thanks for the advice!

I agree with ajfisher, I would want at least 50% of our monthly income available. All it takes is a problem with a car, or an appliance to breakdown and you will be struggling to pay for repairs.
It's nice to be able to put a little bit away every month just incase and I personally wouldn't be able to with $800.

If you think it is sufficient then go for your dream house, only you know how much you spend each month. Good luck xx