Seller closing cost credits are a common way to reduce the cash needed to close. They can be used to cover such things as lender fees, title fees, and even pre-paid factors such as daily interest and funding the escrow account.
For example, let’s say you negotiate a purchase price of $300,000. You can then ask that it be $305,000 with a $5,000 seller credit. The key is that the appraisal validates the $305,000 value. Your realtor will be able to give you an idea on that based on the comparable sales. You will end up with a slightly higher loan amount, but the monthly payment difference will be very small and you will have extra cash left over when you are done. That can come in very handy for getting your new home furnished!