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First time home buy and feeling defeated

We got pre approved for a $550,000 home loan and we saved up $40,000 for a down payment. My husband and I thought we were doing well. Until they told us interest rates went up to 6% from it being 3% so that brought down our home loan to $450,000😔 we want to stay in a small town in Oregon but it is insanely expensive here. With that amount we can get a house that looks like a townhouse with no yard and one parking . That really is not an option for us besides we run a small roofing business and we have dump trailer and a commercial vehicle and our family car. We go told we need to claim more in taxes but we would have to pay $40,000+ which is fine, so we can qualify for a home loan of $550,000+. Which buys us a single family home with a small yard. Which I would totally be thankful for! I can’t believe this switch so fast and our realtor didn’t warn us so for a whole month we were still looking at houses that were in the $550,000 range. Are we able to get pre approved with a different bank? Or because of our taxes, this all we can get approved at any bank? I’m sorry if I sound uneducated! I’m doing my best trying to educate myself. My husband understands more but sometimes I don’t understand it all.

submitted by /u/Pure-flowers
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source https://www.reddit.com/r/RealEstate/comments/1gbn404/first_time_home_buy_and_feeling_defeated/

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