Down Payment

• The amount of your down payment is a major contributor to whether you can get a mortgage. Typically this equals 20 percent of the purchase price. This is the largest expense you face in buying a home. Your initial deposit securing the contract will roll over into your down payment or closing costs amount.
  
  

Home Inspection

• A home inspection by a licensed inspector is good practice. Most purchase contracts are contingent on the house passing inspection. The entire house is evaluated, all appliances tested, the roof, basement and attic are examined and a list of remedial work necessary is given to you. You can cancel the contract or renegotiate the price based on the results of the inspection.
  
  

Closing Costs

• You are charged closing costs to finalize the sale of a house. Costs generally run 3 percent of the purchase price and include title insurance, which is usually 1 percent of the purchase price. Property taxes, mortgage fees, deed taxes, bank appraisal costs, application fees and document stamps are included in closing costs, Private mortgage insurance is payable if your down payment is less than 20 percent and becomes a monthly cost.
  
  

Mortgage Payment

• Most mortgage payments include four factors: principal, interest, state and local taxes and homeowner's insurance. This is known as PITI and is the total you are required to pay on a monthly basis. A rough estimate of PITI, with a homeowner's association payment added to the base, is 1 percent of your mortgage cost. A mortgage of $100,000 will cost you approximately $1,000 each month, including homeowner's association dues.
  
  

Necessary Purchases

• Most new homes come with appliances. Older homes may not, depending on what has been negotiated in the purchase contract. New homes do not come with lighting fixtures and have minimal landscaping. Older homes need repainting and new carpeting. Evaluate what it costs to get your home into the condition you require for basic living. Most of these costs will be one-time expenses, but they must be met prior to moving in.
  
  

Maintenance and Upkeep

• Once you own your home you are responsible for its maintenance and upkeep. Exterior and interior painting, appliance repair, plumbing, air conditioning, the roof -- anything that goes wrong with your house you are responsible for paying the cost of repair. Many homeowners take out an insurance policy that covers appliance breakdowns. If your home is new there should be a one-year warranty on all appliances and 5-years on construction faults.
  
  

Running a House

• Utilities for a house are higher than those paid for an apartment, as much as twice the amount. These expenses include items you may not have paid for in your previous accommodations, like water, garbage removal, sewage costs, in-ground or above ground gas, natural gas or other heating costs, plus the normal electrical costs. Landscape maintenance and pest control are additional monthly costs.