Simple Question about being pre-approved for a mortgage

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Now we plan on putting 50k or so down on the house. Couldnt we be looking @ 375k houses? ( I dont want a 375K house, but maybe just a touch over 325K )

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As a rough estimate, you could finance 325k, so yes, if you are putting down 50k, you could look at something more expensive. But the thing you have to remember is that 325k is equal to a monthly note, which doesn't include escrows for taxes and insurance.

If you got pre approved for $325k, then you should be good putting that much down and financing up to $325k. FHA requires only 3.5% down, but they have loan limits depending on the area. Conventional will go as low as 5% down, depending on your credit. You will just have to pay PMI if you put down less than 20%. I believe if you were buying rental property, they require 20% down. Maybe that's where some of the confusion from other people is coming from.