A: The question really is can you afford the monthly mortgage payment. Currently bungalow style houses in your area are priced at around $275,000 for an 800-1000 square foot home. That is down from over $400 K just a couple of years ago. Your settlement and the current $8,000 first time tax credit means you will finance around $250,000. At todays rate of 5.34% your monthly payment will be about $1350/mo not including tax or insurance escrow. Tax and Insurance cost are readily available from your lender. (you can pull up a loan calculator off the web)
In summary, You have four things solidly going for you, You have a down payment that is close to 20%, you have a job, it is a buyers market and interest rates are historically very low. If you can realistically afford the monthly mortgage (which is probably not much more then your current rent) Buy Buy Buy and thank you for the question.
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