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.
Yes, closing costs can be and sometimes are paid for by the seller if the seller agrees, but your offer is a lot stronger if it doesnât include seller-paid closing costs. Count on $1000-$3500. If your closing costs are more than $5,000, you should find another lender. Down Payment â It could be as low as 3% of the purchase price of the home, up toâ¦ as high as you want. So letâs generically breakdown a $150,000 home purchase: Earnest money â $1,000. Home inspection, termite, and radon test â $450.