Click on the question of your choice to get the answer.

What is Writealoan.com?
How is my Lender chosen?
How secure is applying for a loan on Writealoan.com?
Does Writealoan.com share my personal information?
How do mortgage companies make their money on mortgage loans?
What are origination and discount points?
What is APR and what does it include?
What is Private Mortgage Insurance (PMI)?
When should I choose a fixed rate?
When should I choose an Adjustable Rate Mortgage (ARM)?
How do I obtain a Good Faith Estimate?
When can I lock in my interest rate?
How long does it take to get a loan approval?
Can I choose my own appraiser and title company/attorney?
Who do I contact once my loan is in process?

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What is Writealoan.com?

Writealoan.com is an on-line loan origination system. The system has been designed to take you through applying for a mortgage just as if you were sitting face to face with a Loan Officer. This is the only way that true savings can be passed on to you, the consumer, over the Internet. Writealoan.com believes that consumers need and want a local presence when selecting a Lender. Writealoan.com is the local Lender for certain areas but also can partner with other Lenders in areas outside of its lending area. You then get the benefit of having a local Lender originating your loan while taking advantage of the convenience and savings of applying online.

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How is my Lender chosen?

Writealoan.com, Inc. is the Lender unless otherwise noted on your Personalized Rate Quote. Writealoan.com can act as a platform for other Lenders who would like to secure local territories. Local territories are determined by zip code.

When you enter the zip code of the property you are financing, the system will display the Lender information.

Writealoan.com does an extensive background check on all Lender partners to ensure the highest quality professionals in the industry.

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How secure is applying for a loan on Writealoan.com?

Writealoan.com is committed to protecting the privacy of your financial information and has the latest security technology in place to prevent unauthorized access to your personal information. All personal data taken during the on-line loan application is encrypted for your protection using industry standard security technology called Secure Socket Layer (SSL). This prevents any unauthorized person on the Internet from seeing your information.

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Does Writealoan.com share my personal information?

The only time that Writealoan.com requires any personal information is when you've made the decision to apply for a mortgage loan. This information is only shared with those parties who are directly involved with the loan process such as your Lender, underwriters and processors.

At no time will Writealoan.com sell your information to anyone not connected with your mortgage loan process.

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How do mortgage companies make their money on mortgage loans?

Typically, a mortgage company's profit is built into the interest rate and points. Whether a mortgage banker or broker, they use price sheets from secondary markets. They calculate their desired profit and incorporate that amount into the rate and points they quote you.

Writealoan.com is committed to offering the most competitive rates in the business. By utilizing technology and efficient management policies, we can offer more cost effective terms most traditional institutions.

Keep in mind, by our Internet site quoting you the interest rates, calculating closing costs, and allowing you to complete your application on-line, we have eliminated the costly commissions once paid to the Loan Officer. We employ salaried Loan Consultants who are on call to guide you through the process. The savings are passed along to you.

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What are origination and discount points?

The terms "Origination Points" and "Discount Points" are generally used interchangeably. The term Origination Points is normally associated with conventional financing and Discount Points are used with Government loans such as FHA or VA loan programs.

A point equals one percent (1%) of the loan amount. The more points you pay, the lower the interest rate will be.

You should evaluate your individual situation when deciding whether to pay points on a loan program. If you intend to occupy the property for a long time, then it might be beneficial to pay points to obtain the lowest interest rate possible. But if you do not intend to have the property long term, the amount of additional money you would spend on paying points might not be recouped by the lower monthly payments when you pay off the loan.

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What is APR and what does it include?

The Annual Percentage Rate (APR) is different from the interest rate on a loan. In addition to the interest, the APR includes other finance charges such as origination fees (points), processing fees, underwriting fees, document processing fees, per diem interest and up front PMI charges (if applicable). Fees and/or charges excluded from the APR calculation are title, escrow, recording, credit and appraisal expenses.

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What is Private Mortgage Insurance (PMI)?

Private Mortgage Insurance (PMI) is an insurance policy, which the Lender requires on conventional loans with less than a 20% down payment. The insurance policy protects the Lender against the borrower defaulting (foreclosure). If the borrower were to go into foreclosure, the Lender can file a claim with the insurance company to recoup a portion of the loss it will incur in foreclosing on the property.

PMI is required until the loan reaches a 20% equity position. At that time, the borrower can request that the PMI be canceled subject to certain terms and conditions.

Since PMI is an insurance policy that the Lender procures, there are no additional costs on the loan at closing, but only a monthly premium is added to the monthly principal/interest payment.

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When should I choose a fixed rate?

A fixed rate loan offers borrowers the comfort of knowing exactly what their payments will be for the life of the loan. Terms of fixed rate loans can be from 10, 15, 20, 25 and 30 years. The longer the term on the loan, the lower the payments will be.

If you anticipate not keeping the loan for the entire term, you might want to consider an adjustable rate mortgage which will usually offer you a lower interest rate initially. See When should I choose an Adjustable Rate?.

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When should I choose an Adjustable Rate Mortgage (ARM)?

When should I choose an Adjustable Rate Mortgage (ARM)? Generally, an ARM allows the borrower to obtain a lower interest rate initially over a fixed rate mortgage. Lower interest rates mean lower monthly payments. With an ARM however, the interest rate will adjust according to the term of the ARM. Example terms for ARM's are 1 Year, 3 Years, and 5 Years. So either every 1 year, 3 years or every 5 years the interest rate will adjust. The adjustment will depend on the current market at that time but it usually goes up.

If you are interested in an ARM and require more information, please contact a Writealoan.com Customer Service Representative for assistance.

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How do I obtain a Good Faith Estimate?

Writealoan.com has designed the system to enable you to obtain a Good Faith Estimate any time you receive a rate quote. All you need to do is click on "details" next to the rate desired and a full breakdown of all closing cost will appear.

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When can I lock in my interest rate?

Writealoan.com, Inc. or the local Lender (if applicable) will contact you normally within an hour from the time of submittal between the hours of 9:00 am and 6:00 pm Monday through Friday. Unless arrangements are made with your Representative to lock over the weekend, you will be contacted first thing Monday morning to confirm the following information:

• Loan Program Desired
• Interest Rate
• Points/Costs
• Lock-In Period

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How long does it take to get a loan approval?

Normally, a loan approval can be issued within 48 hours of receiving all your loan application information.

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Can I choose my own appraiser and title company/attorney?

The concept of Writealoan.com is to let the Lender handle the outside vendor requirements. This means that Writealoan.com, Inc. or your local Lender (if applicable) will work with you and your Realtor (if applicable) to determine whom, locally, would be the best to handle the appraisal and title work. You will get the benefit of the long-term business relationships that Writealoan.com, inc. or the local Lenders have established by this localized service, not to mention the added savings to costs from their negotiated fees.

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Who do I contact once my loan is in process?

Upon completing the Quick Application, you will work directly with Writealoan.com, Inc. or your local Lender (if applicable). This information will display on the system from you're the point of your initial inquiry for a rate quote thru the online loan application. The application package that is sent to you by Writealoan.com, Inc. or the local Lender (if applicable) will also have your Loan Processor's name included in it.