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 are all the taxes and fees required to complete a real estate transaction. Home sellers often forget that closing costs come out of their selling price, and the expense can be substantial â and are usually unavoidable.What are all the closing costs, and who pays them â the buyer or the seller-Closing costs vary from state to state and can even differ by county or city.In most states, buyer and seller split closing costs. In other states, the buyer is responsible or the costs are negotiated.ut in Kentucky, the seller pays closing costs. Then there are lendersâ and ownersâ title-insurance premiums, except in Iowa, the only state that does not authorize them. Depending on the state, there can be city, county or state transfer taxes; mortgage taxes; and documentary taxes.