On a closing statement, a new mortgage loan is usually a?

In the context of a closing statement, a new mortgage loan is recorded as a credit to the buyer because it represents funds that the buyer is receiving to facilitate the purchase of the property. When a buyer secures a mortgage, the lender provides the buyer with a specific amount of money to be used in the transaction, which effectively increases the buyer's total available funds for the purchase. This credit is important as it offsets other debits, such as the purchase price or closing costs that the buyer must pay.

In real estate transactions, a closing statement serves to summarize all costs, debits, and credits associated with the sale. The mortgage loan functions as a credit because it allows the buyer to fulfill their financial obligations related to the acquisition of the property, making it a crucial component in the financing aspect of real estate transactions.