The area really depends on what you're looking for... tract housing and good schools or space to tinker with your toys in a more rural setting?
As far as realtors, I love Thompson and Brown. George Brown is a great guy and their ethics are fantastic. Btw, we used them to purchase our house 13 years ago, before I got to know George a bit through our kids' activities.
I lived in Davis for 4 years while I went to college and I noticed that west of the causeway there seemed to be better living. Places like Davis (expensive!), Dixon, and Vacaville are nice.
I second the east of Folsom quote earlier. El Dorado Hills/Cameron Park/Shingle Springs is my favorite area. The further east you go the larger pieces of property that can be found.
I personally would stay away from South Sacramento; more specifically south of US 50 and north of Elk Grove.
One of my clients is a Mortgage Broker. He is doing all of my family's mortgages. He is a pretty straight up guy. His name is Doug Jack. I recommend that you call him, get prequalified, and ask for a Realtor recommendation. Loans by Doug Jack Tell him Dan Murphy sent you.