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.
Portion of buyerâs closing costs: Buyers are usually responsible for mortgage fees, home inspections and appraisal expenses, which can add up to about 2% to 5% of the selling price. If youâre in a slow market, offering to pay some of those closing costs for the buyer could help close the deal.