Is this house right for me?

That's a really nice home and I can see why you're tempted to move your family there. But the best rule of thumb in real estate is to not spend more than one third of your income on housing expenses. If more than a third of your gross income is going into mortgage payments, utilities, upkeep, and property taxes, then you are jeopardizing your family's solvency. Try to live in a home that maintains a healthy cash flow and won't require you to dig into your savings.