What is a lender credit?
A lender credit is money the lender puts toward your closing costs in exchange for a slightly higher interest rate. It lowers your cash needed today but raises your monthly payment — a trade-off worth weighing against how long you'll stay.
A lender credit is when your lender covers part of your closing costs up front, and in return you accept a slightly higher interest rate. It's the opposite of paying 'points' to buy your rate down.
It can be a smart move if you're short on cash to close or you don't plan to stay in the home very long — you save money today at the cost of a bit more each month. If you'll stay many years, the lower rate usually wins. A good lender will lay out both scenarios so you can choose with eyes open.
This answer is general education, not legal, tax, or financial advice. Your situation is unique — let's talk through the specifics together.