Hi Kevin!
We might be neighbors, I am in Corte Madera also. If you are renting now then you have a pretty good idea of what your "housing" expensives are based on your rent payment each month. That will give you a foundation of what you are comfortable to pay. You need to do the math. How much do you have for a down payment? What monthly payment can you comfortably make? Is there one income, or two currently? Is that going to change with a baby (you look young in your photo). Once you determine the math you will know what payment you can afford. PITI (Principle, Interest, Taxes, Insurance) You will also have maintenance to the home, gardening, roofs, painting every few years, and every month maintenances especially if you live in Corte Madera because your neighbors will tell you if your trees need trimming.
Once you know how much house you can afford, then you pick your loan package. Typically a 30 year fixed is going to be a good choice because you pay down principle each month and you can always refinance but you don't HAVE TO REFINANCE. Set yourself up for success in a home and a good loan product that you can afford now and into the future.
The mortgage broker that I like is Rob Spinosa 415-367-5959.
Good luck!

As always, that is a question for your tax adviser and your mortgage broker, who should be talking often. However, whatever they say, don't pay more than makes you comfortable, even if logic tells you it's okay.