Home Buying 101: Closing Costs

Home Closing Costs

I’m often asked, “How much are closing costs?” By being well-informed and educated on every aspect of the home buying and loan process, you can enjoy the experience even more and make sure it’s a time full of happy memories. Something that first time home buyers need to especially be aware of and educated on are closing costs.

There are two types of closing costs:

1) Non-Recurring Closing Costs

“Non-Recurring Closing Costs” (NRCCs) are one-time, and are transaction costs. Some examples of NRCCs are escrow, title fees, home appraisal, home inspections, recording fees, and lender fees.

2) Recurring Closing Costs

“Recurring Closing Costs”, or pre-paid items, are monthly or annual charges that are continuously paid. Some examples of RCCs are interest, property taxes, hazard insurance, or mortgage insurance (if applicable). Typical RCCs are prepaid interest, one-year home insurance, and setting up an impound account.

Below is a table of typical RCCs and NRCCs:

 Buyer NRCCs,
 One Time 

 Buyer RCCs,



 Title Fees


 Home Appraisal

 Hazard Insurance

 Home Inspection

 Mortgage Insurance
 (if applicable)

 Lender Fees


 Recording Fees



Once you have applied for a loan, your mortgage banker or mortgage broker will give you a Loan Estimate (LE) within three days to show you the estimated closing costs for your home purchase. If you would like to see a real example of a closing statement recently used for a client that breaks down NRCCs and RCCs, click here. (In this example, NRCCs are marked with checkmarks and RCCs are marked with circles.)

Closing costs are easy to understand when you know which costs are NRCCs and RCCs. This will help make your home buying process smooth. To find out more about specific closing costs for your new home, contact the expert team at Inspira Group today.

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Topics: First Time Buyer

This resource was published by Bob Dalsimer.

Inspira Group Irvine Realtor Profile

Bob is highly successful in the real estate industry. He has helped people buy, sell and finance homes for over 20 years. His passion for assisting others and providing the ultimate in customer care throughout the loan, real estate buying and selling process has earned him over a 90% referral and repeat client base.

Referrals are how Bob measures his success. His commitment and dedication to clients, employees, agents and his family are unsurpassed.

He has an MBA in finance from New York University and a Bachelor's degree in Psychology. Bob lives in Laguna Niguel with his wife Kei and dog Sachi. Their daughter Julie graduated from the University of California at San Diego and currently works in Human Resources. Their son David graduated from Cal Poly San Luis Obispo and is working in Finance.

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