I spent many years as a mortgage loan officer. People just don't want to accept that they can't afford a particular house. There is always a loan officer out there that will put them in a dangerous loan in order to get them to closing. Just because you are approved for the loan doesn't mean it's a good idea to buy that house.
Not just loan officers. Realtors use the phrase "push up" to young couples. "You will be making MORE money in the years to come....blah blah" When we looked for our first house we dumped our realtor because she only showed us homes that were above our price range.