Good luck to you..
You should try to get pre-approved now and find out what you qualify for, maybe it falls in line with what you want to pay in mortgage.
Are you working with an agent? That should be your first step that way your agent can guide you through the process. I would like to see you go with a direct lender, rather than a broker, you tend to pay less fees. If you need any help please feel free to call me or e-mail me.