When you're putting together a budget to estimate location, size and type of home you plan to purchase, it's tempting to structure your search based on list prices. While this represents the most significant cost of becoming a homeowner, it is just one of many that you'll have to consider when purchasing your first home. Therefore, some prospective home buyers may need to adjust their expectations and budget in order to account for these various expenses.

First-time homebuyers are only required to put as little as 5% cash down for their purchase, assuming they have a 25-year bank loan. However, this figure belies the total cost homeownership due to interest costs. Homeowners will have to consider the ongoing costs associated with housing loans in the form of required monthly payments.

There are a few ways to keep your monthly payments affordable. First, by choosing