What does a debit represent for the buyer at closing?

A debit for the buyer at closing represents an increase in the amount the buyer has to pay. In real estate transactions, debits are expenses that must be covered by the buyer at the closing of the sale. These can include costs such as the purchase price of the property, closing costs, taxes, and any other fees associated with the transaction. Essentially, a debit is recorded on the statement to indicate that the buyer must provide additional funds to complete the transaction. This concept is fundamental in understanding the financial aspects of closing costs and how they can affect the buyer’s total out-of-pocket expenses when acquiring a property.