The price you see on a real estate listing is just the starting point. Owning a home comes with two types of costs: the one-time expenses you pay to buy the house, and the ongoing costs you'll pay every month to keep it. Understanding both is key to figuring out what you can truly afford.

Before you even get the keys, you'll need a significant amount of cash for two major expenses: the down payment and closing costs.

Your down payment shows the lender you're a serious buyer and reduces the amount you need to borrow. While a 20% down payment is often recommended because it helps you avoid an extra insurance fee, many loans allow for much smaller down payments, some as low as 3%.

Next up are closing costs. These are fees for all the services required to finalize the sale and your mortgage. They're separate from your down payment and typically range from 2% to 5% of the total loan amount. So for a $300,000 home, you might pay between $6,000 and $15,000 in closing costs.

These costs can include:

• Appraisal Fee: Pays for a professional assessment of the home's value.
• Home Inspection: To check for any structural issues or needed repairs.
• Loan Origination Fee: Charged by the lender for processing the loan.
• Title Insurance: Protects you and the lender from claims against the property's title.
• Attorney Fees: For legal review of the closing documents.

Once you own the home, your financial responsibilities shift to regular, ongoing payments. The biggest of these is your monthly mortgage payment, but it's not the only one.

Principal & Interest (P+I): This is the core of your mortgage. The principal is the amount you borrowed, and a small piece of each payment goes toward paying that down. The interest is the fee the lender charges for loaning you the money. In the early years of your loan, most of your payment goes toward interest.

Property Taxes: These are taxes levied by your local government to pay for public services like schools, roads, and fire departments. Lenders often collect property taxes as part of your monthly payment and hold them in an account called an escrow. They then pay the tax bill on your behalf when it's due.

Homeowners Insurance: This insurance protects your home from damage due to events like fires, storms, or theft. Lenders require you to have it. Like property taxes, the premium is usually collected monthly as part of your mortgage payment and paid out from your escrow account.

Finally, don't forget about maintenance. Unlike renting, when you own a home, you're responsible for all repairs and upkeep. The water heater that breaks, the roof that leaks, the furnace that needs servicing—it's all on you. Experts often suggest setting aside 1% of your home's value each year for these kinds of expenses.

Ready to test your knowledge? Let's see what you've learned.

Knowing these costs is the first step. It gives you a complete picture of what it takes financially to not just buy a house, but to own it for the long term.