During closing, what are borrower's credits?

Borrower's credits during closing refer to amounts that reduce the total costs the borrower has to pay at the closing table. These credits can come from various sources, such as concessions from the seller or incentives from the lender or other third parties that help to lessen the financial burden on the borrower. When credits are applied, they effectively lower the overall closing costs by subtracting from the amount that the borrower is ultimately responsible for paying. This can be particularly beneficial for borrowers who may need assistance in covering the various fees associated with the closing process.

In this context, it is clear that these credits are not additional fees, funds from the lender as a separate entity, or initial deposits, but rather financial adjustments that serve to decrease the borrower's final out-of-pocket expenses during closing.