I agree with what the rest of the girls are saying, in that you do need to decide which you want more. A very low-key wedding now, or a nicer one later. Keep in mind, you do have some time to figure it out and price a lot of stuff out. If you don't plan to invite a lot of people, really you can have an inexpensive wedding just about anywhere. A couple FI and I know got married in Maui about a year ago with just them and immediate family for under $2000. So it can be done! Sapphire's also right about the house, you need to find out if you can even get the loan right now before really making any decisions. It is a great time to buy, but you also need to have the money to buy so you aren't hurting in the long run.
And hey, if you need some assistance in DIY projects give me a shout, as I'm sure most on BDW will tell you!
Finally...I know from experience how difficult the long engagement can be. We will be nearly 3 years when we exchange vows. It was painful at times, watching newly engaged friends get married long before me, but we did it! And we get a tropical wedding unlike them! HA! Hang in there...price everything out, and most importantly, take a deep breath! *HUGS*