What documentation is generally required to verify a borrower's income?

The correct answer is grounded in the standard practices for verifying a borrower's income when applying for a loan. To assess a borrower's ability to repay a loan, lenders typically require documentation that provides a clear picture of the borrower's earnings.

Pay stubs are crucial as they provide current, reliable proof of income from employment. Tax returns are then used to assess income over a longer period, reflecting the borrower’s financial stability. W-2 forms, given by employers, summarize annual earnings and withholding for employees, thereby confirming the borrower's income as reported to the IRS.

The other options contain documentation that may be relevant but do not specifically verify income. Bank statements and credit reports can provide financial insight but do not directly reflect earned income. Investment statements could show assets but are not direct evidence of income. Property deeds and insurance forms are related to property ownership and insurance but do not provide insight into a borrower’s earnings. Therefore, the integration of pay stubs, tax returns, and W-2 forms constitutes the most comprehensive and standard approach to verifying a borrower's income.