What's the likelihood of getting the house? It's not like you're under contract, so you may just be front-loading some worry there. If this specific house does work out: Can you carpool/take public transport? How steady is the WFH situation (ie could the employer pull you back into the office?) What else can you do to make living in the more expensive house more affordable (decorate your own damn self, do your own yardwork, don't hire a maid, etc etc).
Like with anything, people around the forums can be pretty dogmatic about the MMM lifestyle. People can help out with cutting expenses and punching faces when needed, but sometimes the correct mathematical decision isn't the right path for you/your family. Take on as much information as you can and sort through that to see what will work for you.
As an example:
My husband and I bought a house a year ago. We spend under the recommended income percentage on our house (around 13% or so gross job income, lower if you count other sources of income) but everything else about the house would set off ALARM BELLS on this forum: It is big (especially since we don't have kids yet), we are looking at paying someone to fix up parts of it, we pay PMI (7 months left). People around here (MMM forum) would tell me to downsize and that a house 1/2 the size is fine for children. While that's totally true (I grew up in an 1870s house, I know small houses!), I honestly would rather spend the money on space than retire a year or two earlier.
Do what's right for your family. Save money, watch your spending, chip away at the resistance from your wife, and you'll find yourself in a good position relatively soon.
