You want to find the most affordable home in the best location possible. To do so you will begin with your lender to determine not only the loan amount you qualify for but also the monthly payment that is affordable within you current and future plans. You now know the price range of the homes you will be able to consider purchasing. From this point in the process there are numerous factors you must decide upon such as size of home, size of yard, age of home, condition of home, condition of neighborhood, trends of a particular neighborhood, schools, traffic, and the list goes on. Your Broker should be able to help you analyze the neighborhood and whether it is improving or devaluing beyond what todays economy has brought upon the market. Location will always be an important consideration. A location with a critical flaw such as a busy/noisy road or sitting beneath Bonneville power lines will always affect the property value. The savings you receive today will be the same dollars you don't receive in the future. I always tell my clients to consider resale value on any home they might consider purchasing. Fatal flaws are hard to overcome. Affordability in any market changes based on the economy, the interest rate, the owner (ie Bank Owned), Seller's reason for selling, and so forth. Give me a call I'd love to help you locate and purchase your first home.