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.
Most people remember many seller and buyer closing costs but two closing costs that are at times forgotten are title insurance expenses and survey costs. In just about every state, the buyer must pay for title insurance expenses related to their loan with their lender. In some states ,the seller pays for the ownerâs title insurance policy as a seller closing cost. In other states, the buyer pays for the ownerâs title insurance policy as a buyer closing cost. An ownerâs title insurance policy insures the new buyer of the home against title insurance problems and issues.