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 was designed to enable local mortgage bankers and brokers the opportunity to originate residential mortgage loans over the Internet without the expense of branding an Internet site.

Writealoan.com believes that consumers need and want a local presence when selecting a Lender. Writealoan.com distributes all loan applications to the pre-determined mortgage broker/bankers within your zip code. You will get the benefit of having a local Lender completing the process while taking advantage of the convenience and savings of applying online.

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How is my Lender chosen?

Writealoan.com acts as a distribution center for mortgage bankers/brokers, which have secured local territories. Local territories are determined by zip code.

When you enter the zip code of the property you are financing, the system automatically assigns your information to the Lender who has secured that local territory.

Writealoan.com does an extensive background check on all it's Broker Outlets 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 upfront 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 a 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 Good Faith Estimate on the Today's Rate page and your closing cost will appear.

Upon completion of the on-line application, the Good Faith Estimate will also be one of the many disclosures that you will be required to print along with the application package.

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When can I lock in my interest rate?

Upon completing the on-line application, the system will ask you if you would like to have your loan pre-approved. At that point, a credit report will be obtained and you will be required to pay the application fee.

Once you have received your loan pre-approval, the system will ask you if you would like to lock in your interest rate. You may choose to lock in or you can float with the market. If you do not lock in at the time of application, you will be required to enter the system at the time you wish to lock in the interest rate in order to do so.

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How long does it take to get a loan approval?

The system is designed to offer you the option of obtaining a pre-approval at the time of application. Once your Lender receives the application, a full loan commitment will be issued within 24 hours.

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

The concept of Writealoan.com is to let the local companies, both mortgage brokers and mortgage bankers, handle the outside vendor requirements.

This means that your Lender will work with you and your Realtor (if applicable) to determine who, locally, would be the best to handle the appraisal and title work. You will get the benefit of the long-term business relationships that the 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 loan application process on the site, the name of your Loan Processor and complete contact information will be on the documents which you are required to print out and return.

However, your Loan Processor is required to contact you within 24 hours of loan application during business days and 48 hours over the weekends.