The house is finally yours! You've signed the closing documents, unloaded the moving truck, and begun discussing new paint colors. But wait – it won't be long until that first mortgage bill arrives in the mail. It might be the least glamorous part of homeownership, but paying the mortgage really is essential, and it's important that you know how the process works. Here are two important things to know before you make your first mortgage payment.

Mortgage payments are paid in arrears.

When you pay rent, you're typically paying for the upcoming month. For example, rent for the month of March is due March 1^st. Most loans typically work this way, too. However, mortgages are different. They are paid in arrears, which essentially means that when you pay for the previous month once that month is over. So if you have a mortgage payment due March 1^st, that payment covers you for the month of February. This is important to keep in mind when you're waiting for that first mortgage bill to arrive so you know when to expect it. You won't usually have that first bill due until you've lived there for a month already.

If you want to put extra money towards your principle, you need to designate it that way.

Many people want to pay their mortgages down early and plan on putting a bit extra towards that cause each month. But this is not as simple as writing a check for $1200 instead of the $1000 your bill requests. If you simply write a larger check, the mortgage company will just put that extra money towards your interest.

What you really want to do is apply your extra cash towards the principle so that over time, you're charged less interest because your principle is smaller. To do this, you'll typically need to write two checks – one for your regular payment, and a second one for the extra principle. Write "apply to principle" in the check's subject line. If you pay online, you may need to ensure a box is selected for "apply to principle" or the like when entering your extra payment. This all varies by mortgage lender, so contact your lender if you're not sure how to ensure your extra payments go to the principle.

Paying your mortgage is not always as simple as writing and mailing a check. Now that you know about paying in arrears and making extra principle payments, you can approach the situation with confidence. Contact a company like Homestead Land Co to learn more.