In terms of settlement, what does a buyer credit specifically NOT include?

A buyer credit during the settlement process generally refers to amounts credited to the buyer by the seller, which can help offset some of the closing costs. These credits are designed to assist the buyer in making the home purchase more affordable by reducing their out-of-pocket expenses at closing.

Loan origination fees, which are charged by the lender for evaluating and preparing mortgage loans, do not fall under the category of buyer credits. These fees are a standard part of the mortgage process and are directly related to the financing of the property rather than any adjustment or contribution by the seller to aid the buyer. Therefore, they remain the responsibility of the buyer and do not reflect any financial support from the seller.

On the other hand, utilities paid by the seller, security deposits, and property insurance can indeed be part of the buyer credits, as they may either be directly negotiated during the settlement process or might involve the seller absorbing some of these costs to facilitate the sale.