2 months later.... we bought the house! We're very happy. We're also landlords now, and the "rent fairy" has visited us twice so far.
I definitely like being on the other side of that arrangement.
We stretched to make the down payment and closing costs, so we're getting back on track now. The emergency fund is replenished, we've finally gotten serious about retirement, and we just sent a big chunk of money to the car and high-interest student loan debts. Both the car and Sallie Mae will be paid off by April 15th, just in time to send another big chunk to the government (not complaining). Once that's done, we'll just have the mortgage (~400K) and the low-interest student loans (45K). My plan is to accelerate both, paying almost double on the mortgage to try to have it done in 10 years, and double on the student loans to have them done in 5. I think we can manage to do this and still put a decent amount of money aside in a 529 and a general-purpose index fund, in addition to the retirement fund.
Both of us grew up lower-middle-class, without much financial security, so my main goal in reducing our debt load is to give us more breathing room if my husband loses his job or we have emergency medical expenses that the insurance company refuses to cover. We have a variety of income streams now, and I don't doubt our ability to find ways to bring in money as needed, but when you're staring down thousands of dollars a month in debt payments, that's a heck of a lot scarier. I'm not ignoring savings, I know how important it is to have reserves in an emergency, but I'm not nearly as concerned about our ability to pay our non-debt expenses if something comes up.