Prepaids are actually pre-paid interest. If you negotiate in the purchase agreement that the seller is to pay for the buyer's prepaids, they then can get taken care of within escrow.

Also note, that because prepaids are just pre-paid interest, at the end of the year, you can claim that amount as interest that has been paid, but verify that with a competent CPA.

Prepaids also include HOA dues, depending on assessment dates. The prepaids are closing costs but in my state we have to put "closing costs to include prepaids" into the special provisions. I would think it may vary by state.

Assuming when you wrote 6, you meant 6%. It means the seller can contribute up to 6% of the sale price of the home towards your closing costs and pre-paids.

Pre-Paids are property taxes and insurance, usually paid into an escrow account required by the lender.

Example - if the agreed sales price is 200,000, then the max seller concessions can be 12,000.

closing stock calculation formula?

closing stock calculation formula?

closing stock calculation formula?

yes how can i do the closing stock calculation?

Closing Remarks

Closing entries comes first as name shows post closing entries are after closing entries and it is as simple as name suggests.