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.
Closing Costs. Closing costs are the feeâs the lender will charge for servicing your loan. The closing costs can add up to be 3% or 4% of your home. But if you buy a HUD home these costs can be paid by HUD; if this incentive is offered by HUD and if they are specifically requested, by dollar amount, in the bid offering.ommissionâs are paid to the broker by the seller, and usually in the amount of 6% or 7% of the cost of the home. When you buy a HUD home, the selling agentâs commission is usually paid by HUD.