Which document verifies that the buyer has the necessary funds for closing?

The document that verifies the buyer has the necessary funds for closing is evidence of funds. This documentation is typically provided by the buyer's financial institution, such as a bank statement or a letter from the bank, showing that the buyer has sufficient funds available to complete the purchase of the property.

This verification is crucial because it assures the seller and other parties involved in the transaction that the buyer is financially capable of fulfilling their obligations at closing, which includes covering the purchase price and any closing costs.

The other documents, while important in their respective contexts, do not serve this specific purpose. A purchase agreement outlines the terms and conditions of the sale but does not provide financial verification. A closing statement summarizes all of the financial transactions that will occur at the closing but is generated during the closing process itself, not beforehand. A loan application is used to request financing from a lender but does not confirm that funds are available, as it is merely a request for a loan rather than a verification of funds.