I agree with watching on tv or going to the web sites of Suze Ormon and Dave Ramsey. Add to these names one more....Howard Clark. They won't steer you wrong...especially my favorite, Dave Ramsey.

I'm a Paducah Realtor. It depends on the type of loan you qualify for and the lender you speak with so shop around. Lender's have different rates, requirements and closing costs.

I used the numbers you mentioned to find your buying power. With a conventional loan I figured you could afford $179,000. With an FHA loan you could afford $185,000. With a VA loan you could afford $260,000.

I'm not a lender and don't normally determine buying power. I used an interest rate of 5.5% and a 30 year term.

If you need a lender referral or have other questons you can call or email me.

I would definitely go see a qualified lender or mortgage broker in your area. There is no obligation to visit them and they'll be grateful for the opportunity for your business.

Generally speaking (and this is just a basic quick guide)......
To figure out how much a mortgage will be, take the purchase price (for example $200,000) and take 10% of that number (which is $2000) and subtract $300 dollars from what ever that number is. In this example, the general monthly mortgage on your $200,000 would be around $1700 per month.

It has been said that you should spend no more than 30%of your total monthly income on housing. Susie Orman and Dave Ramsey have shows every day that discuss these type issues. You may want to surf on over to their shows and take a listen.

Hope this gives you a general starting point.

Darin