"Many first-time buyers focus only on the advertised mortgage payment, but there's actually more included than just paying back the loan.

Your monthly payment is typically made up of four primary components.

The first is principal, which pays down the amount you borrowed.

The second is interest, which is the cost of borrowing money from the lender.

The third component is property taxes. In many cases, lenders collect a portion of your annual property taxes each month and hold those funds in an escrow account until they're due.

Finally, you'll typically pay homeowners insurance, which protects your investment if unexpected damage occurs.

Depending on your loan program and down payment, mortgage insurance may also be included until certain requirements are met.

Understanding these costs before shopping for a home gives you a much more accurate picture of your true monthly payment.

During the pre-approval process, I work with buyers to estimate these costs so there are fewer surprises later.

Buying a home should feel exciting—not confusing—and understanding your payment is one of the first steps toward becoming a confident homeowner."