What is a seller credit and how does it work?
Often when a buyer has only enough money for the required down payment and no additional funds for their loan and transaction related closing costs they will ask the seller for a credit through escrow.
When writing an offer for you to purchase a home and you need a closing cost credit we will write on the bottom of page 1 of the offer, for example:
"Seller to credit buyer $7500 for buyer recurring and nonrecurring closing costs"
Seller does not have to agree to provide a credit, but often they are willing.
Any dollar amount the seller credits a buyer's closing costs is a reduction in net proceeds to the seller from the sale.
How will you know if you need a credit for your closing costs? Usually your lender will tell you a credit is needed.
Contact Tom Lichtenberg for an excellent home buying or selling experience