Credit at closing
An amount subtracted from what the buyer owes at closing, often agreed to instead of doing repairs. Lenders limit credits to actual closing costs, so they cannot be paid out as cash.
Also called: closing credit, repair credit, credit in lieu of repairs
Related terms
Money the seller agrees to put toward the buyer's closing costs, prepaid items or rate buydown. Loan programs cap how much a seller can contribute.
A written list from the buyer, after inspection, asking the seller to fix items, give a credit or lower the price. The seller can agree, refuse or counter.
An itemized list of every charge and credit for the buyer and seller in a sale. It shows exactly where each dollar goes at closing and should match the Closing Disclosure.
The total amount the buyer must bring to closing, usually the down payment plus closing costs minus earnest money and any credits. The final figure is on the Closing Disclosure.