I see a lot of warning lights going off here. You are both approaching this emotionally and out of a sense of urgency. Those factors make it easy to ignore negative signs. First, why are you so set on a particular neighborhood? There may be lots of other places that are much more affordable and would be a better overall decision. I could have bought a $250k house. But I found one that was less than 1/3 that cost. It has made me much richer due to having such a small mortgage payment, lower taxes, lower insurance premium, etc.
You need to have the house inspected. Your contract needs to say you can back out if there are problems found.
If you do decide to buy the house, can you take 401k loans for the $70k? How much can you save in the next few months? You can also get personal loans or cash advances. But your credit is already pretty close to the 740 level, which is what you need to be over to get the best mortgage rates.