Trying to buy a home in the bay area in CA

OK, Mr and I want to buy a home in the bay area (hopefull near San Jose). A realator we met with told us we could afford something in the $350, 000 range (but with monthly payments of 2,300 a month). Yeah right! We could maybe afford half of that (does she think we don't need utilities?!) anyway, for $350,000 we could maybe afford a 1 br 1bth condo (we are looking for a 3 br). We have off and on considered mobile/manufatured home but hear good and bad about it. If we have to live there a long time, that's ok as long as we can eventually get to a "real" home. Anybody have some good info as to point us in the right direction?!?! Just looking for some good advice.

~Newlyweds looking for thier first home. )