You have fallen in love with the house. That’s the “heart” bit over and done with. Excellent, no one should buy a house they hate.
Now, forget the heart, use the head.
What you can ‘comfortably’ afford ( interest rates might go up). Bear in mind too all the extra expenses of solicitors fees, searches, moving costs.
What ,if any work, needs to be done to the house, focus on basic stuff, roof, electrics, plumbing, heating,fencing, damp. Then think about updating, (kitchen bathroom) . Try not to think about decor, you can live with it, getting the structure right is where the money needs to be spent. Unless you have a builder in the family who can check the house over you need to budget for a full survey.
Check out the area at different times of the day, how does the traffic change, are there schools nearby, does a bus go past fifty times a day and stop at the bus stop next door? Is there a pub down the road, a supermarket, a takeaway, a station, a church, a temple, a mosque? Where do people park, where do the neighbours park, where will you park?
Which way is the house oriented, where does the morning and afternoon sun fall.
If you have dogs or children is there a park or open space nearby, is it safe to walk there, are there decent pavements. What other useful local amenities are nearby, a doctors, a garage, a petrol station, a handy shop.