I too have recently entertained the idea of buying a townhouse but the market prices in my area are a little too high!
The best advice I got from my sister who bought her house years ago is not to get the ARM -Adjustable Rate Mortgage which changes according to the interest rates and market. I also attended a grants seminar and was informed that there is $250,000 available for first time home buyers from the federal government- and for those who may be buying again if you haven't bought a house within the past three years. It is also best to have at least a twenty percent or more downpayment to reduce that mortgage payment.