[newnhdad]

Any definition of what exactly this is and how it will benefit us at the settlement would help us sleep tonight.

[Responsibility2nd]

Ask your escrow agent (or title insurance agent)

I don’t know what a lender’s credit is either, but I’m guessing it will be identified on your Settlement Statement somehow. And the Title Company can explain it.

[So Cal Rocket]

Think of it as “negative points”. The bank is giving you money to pay off some of the closing costs.

See if they will lower your interest rate if you tell them they can keep the Lender’s Credit.

[CodeToad]

Lender credits can be used for such things as closing costs. Keep your money in your pocket. We got a bank to pay $28,000 in costs, saving us that money in one form or another.

[bopdowah]

Your loan officer is taking a portion of their fee paid directly to them from the bank and paying some or all of your closing costs with it. This is how no closing cost loans are done.

[svcw]

It is just like any credit, your closing costs will be less than anticipated.

[Sacajaweau]

http://www.city-data.com/forum/mortgages/1113520-lenders-credit.html

[Jonty30]

I don’t think, in this economy, buying a house is the solution.

With hundreds of thousands or millions of homes currently being unoccupied at the moment, squatting is the best move.

[RegulatorCountry]

They're offering to waive certain fees upfront for closing, or there may be an interest penalty. Have them both quote it two ways, their absolute lowest APR for one, and the deal that they both have offered for another.

If their offer isn't increasing the APR it's a discount and you would want to take advantage.