Other common deferred expenses include startup costs, the purchase of a new plant or facility, relocation costs and advertising expenses. Both prepaid expenses and deferred expenses are important aspects of the accounting process for a business. As such, understanding the difference between the two terms is necessary to report and account for costs in the most accurate way.
Tip: Get the lender to pay the closing costs. If you're short on cash for the closing costs and can't roll the closing costs into the mortgage, some lenders will pay part or all of the closing costs, but in exchange you'll have to pay a higher interest rate on the loan, perhaps 0.25% or 0.50% higher.
A buyerâs closing costs might typically range from 2 to 7 percent of the sales price, or $2,000 to $7,000 on the purchase of a home. Title insurance. 2  In some states the seller must provide a policy of title insurance for the buyer. 3  The cost of the policy depends on the sales price of the home and its cost can vary from a couple hundred dollars to several thousand dollars.