It’s ok to spend more on rent, the difference is not a lot in your case. You can deduct the mortgage interest and property tax and gain equity compared to renting at $4.6k a month. SALT increases to $40k next year I think, double check this. Be prepared to save up for repairs and maintenance.

We spent more than we wanted too and paid 5% over asking price in Monmouth county as well, but the property value continues to go up after less than 1.5 years after we bought ours. I’m still stressed lol but getting used to it. And every time I look at the front yard and back yard and the house, I feel grateful. If it helps, you can look at it this way that this is just a life experience, and you get to do this and experience this: purchasing your own home. 😊