Domain name is actually quite cheap depending where you are buying from. Namecheap is only 10 usd for a year compared to company who maybe is a reseller (buy from companyn like namecheap and sell to you, like middle person)
I personally dont recommend getting your domain name and webhosting from a same provider. After your contract ends with the provider, or thing turned sour, at least domain name control is still under you.
Webhosting companies will always offer you 'best price' package to first signup. After the contract ends they will hike up the price a lot that you either have to pay or go through the hassle of moving your webhosting. What i did is sign up for the longest time package and once contract ends i search for new webhosting provider. Though there s a chance that your current webhosting provider will make a lot of trouble for you to move the files over to new provider.