A house listed for $1250 sounds great, but could be a lease amount. Call a Realtor in your area with the address of the property and he/she will be able to verify the list price. Good luck with your search!
Please let the Realtor know by phone or e-mail you wish to work with someone who will have the patience needed to find your new home. It may take several trips and viewing many homes. You should not feel rush or pressured by anyone. It's a big purchase and no one should take the joy away from your experience. Good luck in finding your new home.
I would contact lenders in your area. If its been two years you should be able to find someone who is willing to work with you in obtaining a new loan. Good luck to you!
Congratulations on your decision! It can be a very exciting adventure. Definitely find a buyer's agent who is willing to help you every step of the way. If you have a good relationship with your bank or credit union, start there to pre-qualify for a mortgage. This is important to find the amount of home you qualify for and what you are comfortable and able to handle. If you do not have a lender in mind, your Realtor may be able to recommend a mortgage loan officer to you. Once you know the amount of home you qualify for, it's time to start looking for your new home. Best of luck in your home search.