What do borrower’s credits include in the context of closing costs?

Borrower's credits encompass various forms of financial contributions or aids that help reduce the overall closing costs for the borrower. This can include fees paid by the seller, which may be negotiated during the transaction, lender credits where the lender reduces their fees or provides a credit towards closing costs, and any prior payments that the borrower might have made that are applicable to the closing costs.

This option reflects an accurate and comprehensive understanding of what constitutes borrower's credits. It recognizes that not all costs related to closing are strictly the responsibility of the borrower; instead, there are multiple parties involved in a real estate transaction who can contribute to mitigating these expenses.

Furthermore, the other choices are limited in scope, as they only highlight specific aspects of closing costs rather than offering a complete picture of borrower’s credits. Focusing solely on points paid by the lender, appraisal fees, or discount points ignores the collaborative nature of real estate transactions and how various credits can come from different sources to alleviate borrower costs.