Final answer:
Option (B), The most common form of appraisal-related fraud is when an appraisal uses inappropriate comparables to determine home value. Borrowers can reassure banks by showing strong credit history, stable income.
Step-by-step explanation:
The most common form of appraisal-related fraud arises when the appraisal uses inappropriate comparables to determine the home value. To reassure a bank about a borrower's ability to repay a loan, the borrower can demonstrate their creditworthiness and stability in a few ways. Firstly, they can provide a strong credit history and a high credit score, showing consistent, timely payments in the past.
Secondly, having a steady employment history and proof of current, stable income can help assure the bank that the borrower has the means to make loan payments. Finally, a substantial down payment decreases the loan-to-value ratio, indicating the borrower's financial commitment to the property.