Which document provides insights into a borrower's income?

The correct answer focuses on the borrower's pay stubs and tax returns because these documents are specifically designed to provide detailed evidence of an individual's income. Pay stubs offer a breakdown of salary, wages, and deductions, reflecting the borrower's current earnings. They typically include gross income, taxes withheld, and any other deductions, giving a clear picture of the borrower's financial situation.

Tax returns, on the other hand, summarize an individual's income from the previous year and can provide a broader understanding of earning patterns and sources, including wages, salaries, and any additional income such as investments or freelance work. Together, these documents serve as critical elements in assessing a borrower's ability to repay a mortgage by ensuring that income is verified and legitimate.

While a mortgage application does request information about income, it relies on the borrower's self-reported data, which has to be substantiated with more concrete documentation. A credit report mainly provides insights into a borrower's credit history and payment behavior but does not directly reflect income. The property deed, on the other hand, deals with ownership of a property and is not related to the borrower's finance or income level. Thus, pay stubs and tax returns are the best sources for understanding a borrower’s income.