After learning your first magic spell, you go to live with your Aunt Maria and Uncle Jack in Terris.
With the fireball spell learned, be sure to use it to burn down trees. Some trees hide secrets behind them, and some even hide stairs below them. You can burn light green trees, but not dark green ones.
Meet Your New Family
Now you should now go to Terris to meet your Aunt Maria. To get to Terris, just head west from your town and follow the dirt path. You'll need to pay 100 coins to cross the bridge, then go south at the fork in the road. Maria's house is east of the first aid house.
Go into Maria's house and you'll get harassed by her abusive husband Jack. Then Maria will appear and welcome you. Go upstairs to save. When you go back downstairs, you'll see Jack beating Maria. You can try to kill Jack now, but you're probably still too weak. You can go back later when you're stronger.
You can buy a longsword in town for 400 coins. There are stronger enemies around town, especially to the south, that you can fight to get those coins. Be sure to come back and get the longsword when you can afford it.
To the west of the bar you will find Nadine's house. Talk to her and tell her that you will help find her missing daughter.
Head south from Nadine's house until you find a suspicious-looking archway and columns. Go down the stairs.