Inspira Group Client Success Stories

Buying your first home is an experience that you’ll never forget. That’s why it’s best to make it a positive one! This can be easily achieved with the right real estate team working beside you, as well as a clear understanding of the home buying process. Something that most first time buyers are not aware of is the concept of pre-approval and pre-qualification.

To start off, pre-qualification and pre-approval are not the same. Sometimes these terms are used interchangeably, but this is not correct. Though they may sound similar... READ MORE

There are two types of closing costs:

1) Non-Recurring Closing Costs and 2) 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.

“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:

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.