Well, as first time buyer, you may get some 7500 tax credit

but the bill is not out yet. So, I am learning too.

To a first time buyer without much experience and you are also living in a potentially expensive state like California, you need to place high emphasis on the price and interest rate. The $7500 credit is simply a bonus, not a deciding factor. If you can't find a house that you can afford, you rather wait for the price to become affordable, that's more important.

If you live in certain location in expensive Bay area, you need to be extra careful. The bill will help to ease the pain, but the pain will still be with us for a long while to come.