You can level to 5?! And a +1 sword was 2000+ gold?!!!
Huh. I seem capped at 4 and +1's cost me less than 1000gold. I know Bards aren't an option yet, so play a rogue?
The level cap is 4, but you can get the experience required for level 5.
+1 costs vary a lot depending on what type of weapon it is, the difference between a +1 Short Sword and a +1 Great Sword would be massive.
On a side note, you can craft a +1 weapon in the Blighted Village using bark you find west of the Myconid Colony in the Underdark which has an added effect of Silencing enemies on hit.