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.
But a sellerâs closing costs often go way beyond that, simply because most sellers use a full-service agent to sell their home, which can add an additional 4 to 7 percent to the closing cost total. The list of closing costs can add up to several dozen items.ll FHA fees used to be the responsibility of the seller, but they are now negotiable. But if the buyer canât pay the fees, and the seller refuses to kick in a few bucks, the lender may not fund the loan. * Condo/co-op move-out fee. A building charge that can range from nothing to more than $400.