You also may be able to take advantage of the free home buyers credit of up to 8,000 dollars which is a huge incentive for home buyers in the year 2009.
In today's market buying a home is probably a good idea.
The market values have gotten very low; although they may go a little lower, it is inevitable that they begin to go back up.
If you can afford a home then buy one today.
Also do you invest in the stock market or other avenues.
If not then now is the time to buy to at least begin some sort of investing strategies although the housing market over the last 20 years has not done excellent it will still give you some kind of rate of return on your investment.
Buying a home is a huge step.
Do not take this lightly.
Get with a mortgage professional who can help you with your budget especially if you are not good at creating and maintaining one.
Let your loan officer help you with affordability but remember you are going to know what you can afford better than them.
If they tell you to buy a bigger house than what you are looking for, if they say buy a cheaper home it may be because the really care and think you may not be able to afford the higher payment.
Have fun in your home search and make sure you take advantage of the special tax credit.
Buying a first home is a great experience.