: Sellers may offer credits to cover standard fees such as loan origination, title insurance, or recording fees to incentivize a buyer in a competitive market.

: Credits are often used to prorate expenses like property taxes, homeowner association (HOA) fees, or prepaid utilities that the seller technically owes up to the date of closing. Regulatory and Lender Restrictions

: If a home inspection reveals issues (e.g., a roof near the end of its life), a seller might provide a credit so the buyer can handle the repairs after moving in, rather than the seller fixing it before the sale.

Letter of credit in case of buying real estate - Невский Простор