The initial escrow statement is typically provided:

• A. At loan approval
• B. After closing
• C. At settlement
• D. During processing

Answer: (C)

The initial escrow statement is provided at settlement. This document lays out the estimated property taxes, homeowners insurance, mortgage insurance (if any), and HOA dues for the first year, along with the projected monthly escrow payment and any cushion. Presenting these figures at settlement ensures the borrower sees a date-specific, accurate picture of the escrow obligations tied to the closing date, allowing for proper budgeting before funds are disbursed. If it were shown earlier during processing or at loan approval, the numbers could change before closing; if shown after closing, the borrower wouldn’t have timely visibility into the first year’s escrow obligations.