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Credit (Closing Statement):
"Credit" on a closing statement is like money that is given to someone as a way of paying for some of the costs associated with buying a house. For example, if the seller agrees to pay for some of the buyer's closing costs, that amount will be listed as a credit on the closing statement.
For example, let's say you bought a house for $100,000 and you agreed to pay for the property taxes for the entire year, which cost $1,200. However, the seller already paid the property taxes for the entire year, which means you paid for something you shouldn't have. In this case, you would get a $1,200 credit on the closing statement, which means you would get $1,200 back as a refund.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
Oh, the credit on the closing statement, it's a curious thing,
Like a gift of money to the buyer, it makes their heart sing!
When the seller agrees to pay for some costs, oh how grand,
A credit is given, it's money in hand!
It helps to lower the buyer's expenses, you see,
And that makes them as happy as can be!