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 seller paying the buyerâs closing costs means that the buyer has more incentive to close the deal on the home, which benefits the seller because they get paid the purchase price sooner. Note that by asking the seller to pay your closing costs, you are essentially lowering the purchase price of the home, so keep that in mind when negotiating the purchase price of the home.