What are Seller Credits and How Can They Help?

What are Seller Credits and How Can They Help?

Seller credits, also known as seller concessions, are funds provided by the seller of a property to help cover the buyer’s closing costs. In short, these credits can help reduce the amount of money you need to bring to the closing table, making the hoe purchase more affordable.

Seller credits can be applied to a variety of closing costs, including:

• Appraisal fees
• Title fees
• Inspection fees
• Attorney fees
• Escrow fees
• Property taxes
• Homeowner’s insurance

What Happens If Seller Credits are Higher Than Closing Costs?

If the seller credits exceed the closing costs, the excess funds can be applied to the other expenses or reduce the sale prices of the home. However, seller credits cannot be used for the down payment, which is a separate expense paid by the buyer.