Our church produced a CD earlier this year. Our music minister is a very talented song writer and we have many talented singers and musicians in our congregation. They found a recording studio that got behind it and donated a lot of time to the project so the price wasn't too bad.
As a sound technician in my earler life, I did a lot of recording work in the 70s and can tell you there is a lot of talent in good mixing which can make all the difference in the final product. My one suggestion is go for it. No matter which way you go, as long as you are willing to spend the required time the end result will be something you can be proud of.