Hello Friends seeking advice

Wife and I are in the process of purchasing a new home. I work in SF and she works in South SF. Our budget is 1.2 million with a monthly mortgage of 7 k, and we have the 20% down payment covered as well. We have no major loans/debt to pay with both our credit score about 780. We have a realtor and we are in the process of getting the pre approval/finding lenders. Currently one lender quoted us at 6.8%. Things we are hoping for - Bart/ferry station for commute - nice/safe neighborhood - school for future kids - 2-3 bedroom house - patio/backyard I’m unsure if these things are attainable with our current budget.

Thanks for your help, and I hope to hear from you soon.