Definition
These are credits (money applied to reduce your cash due at closing) that you've already paid, like earnest money you deposited or amounts the seller agreed to credit you. They reduce the final amount you bring to closing.
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Buyer credits are deposits or amounts the buyer has already paid or is entitled to receive, shown as reductions in the final cash needed at closing. Common buyer credits include: earnest money deposit, property tax and insurance prorations, HOA fee reimbursements, and security deposits (for rental properties). These credits are deducted from the total amount the buyer must bring to closing.
Pro Tip
Verify every buyer credit on your settlement statement—make sure earnest money and seller credits are properly reflected.
Example
The settlement statement shows: purchase price $300,000, buyer earnest money deposit $10,000, proration of property taxes $1,500, proration of insurance $800, resulting in buyer credits of $12,300 that reduce the cash needed at closing.