What document provides evidence of a borrower's financial stability to lenders?

A Verification of Deposit (VOD) is a crucial document used in the lending process as it provides official confirmation of a borrower's financial stability. This document is typically completed by a financial institution and includes information regarding the borrower’s account balances and financial history, allowing lenders to assess the borrower's assets and their ability to make down payments or handle mortgage payments.

This evidentiary documentation enables lenders to make informed decisions about the risk associated with lending to the borrower, and whether the borrower meets the necessary financial requirements to qualify for a loan. Other options, while relevant in different contexts, do not directly serve as evidence of a borrower's financial stability. Transfer tax documentation pertains to taxes related to property transfers, a walk-through checklist is used to verify property condition during a home inspection, and a contract for sale outlines the terms of a property sale but does not provide insights into the buyer's financial health. Thus, the Verification of Deposit is the definitive choice when evaluating a borrower's financial standing.