What does a Verification of Deposit (VOD) confirm?

A Verification of Deposit (VOD) is a critical document used in the lending process that confirms specific financial information about a borrower's bank account. It is primarily utilized by lenders to verify the borrower's account balance and often includes a summary of transaction history for a specified period. This information is essential for assessing the borrower's financial stability and ability to make timely mortgage payments.

The VOD is typically requested from the borrower's bank and provides lenders with a reliable means to ascertain that a borrower has sufficient funds available for the down payment, closing costs, or reserves. By confirming both the account balance and the transaction history, the lender can better evaluate the borrower's financial position as part of the overall mortgage application process.

In contrast, the other options do not accurately describe the purpose of a VOD. It does not provide details about the borrower's credit score, mortgage payment history, or employment history; these aspects are verified through other means such as credit reports or employment verification forms.