Loans

My bf & I are confused how loans work. We were told we were able to loan $130k for a home but we're wondering if it was the right move to make. He has very good credit, isn't in debt. We currently pay $675 a month for the home we're currently renting & have $20k of our personal money saved up. Are there any things we should look out for? Is it a bad idea or a different way we could get a house?

We don't want to make the wrong decision & end up in debt or stress out too much.