Costco Mortgage Review 2022 | American News

Editor’s note: Costco no longer offers this program.

Along with your rotisserie chicken and megapack of toilet paper, you can also take out a mortgage at Costco. Costco’s Member Mortgage Program can help you buy or refinance a home through CrossCountry Mortgage’s multi-lender platform, which can connect you to a variety of loan offers nationwide with low loan fees.

Best Features

  • Low lender origination fees are capped at $250 for Executive Members and $550 for Gold Star Members.
  • The program lets you choose up to four participating lenders, so you can compare loans without receiving spam from dozens of lenders.
  • Most standard documents are submitted online.

Disadvantages

  • Only Costco members are eligible for discounts.
  • Aside from assembly fees, the conditions may not be better than what you can find elsewhere.

What types of mortgages does Costco offer?

Costco Mortgage Program lenders offer a variety of loan options, including:

  • Conventional mortgages of 10, 15, 20 and 30 years.
  • 7/1 and 5/1 adjustable rate mortgages.
  • Mortgages for first time buyers.
  • Low down payment mortgages.
  • Giant loans.
  • Loans from the Federal Housing Administration.
  • Loans from the Department of Veterans Affairs.
  • Refinancing.

How do Costco mortgages work?

On the Costco website, enter basic information to generate offers, including property amount, down payment, credit score range, and zip code. Select up to four offers, then enter your information so lenders can contact you to complete an application.

From there, your experience with the application, paperwork, and closing will depend on the lenders you choose. But overall, each lender’s origination fee is capped at $250 for Executive Members and $550 for Gold Star Members.

What are Costco’s terms, fees and conditions?

Terms, fees and conditions vary by lender. That said, you probably need at least a FICO credit score of 620 to qualify for a loan under the program.

What discounts does Costco offer?

The main value of the mortgage program is its low lender fees, which cap origination fees at $250 for Executive Members and $550 for Gold Star Members. Lenders may offer additional discounts, such as autopay or discounts for returning customers.

How can you qualify?

Find the loan offers you qualify for using Costco’s Lender Finder. You can select options including your property value, your down payment amount, and a credit score ranging from 620 to 850. Search for results and adjust your settings, such as your down payment, if you don’t get the desired results.

What credit score do you need?

Costco’s Lender Finder only searches loans available to borrowers with a credit score of 620 or higher. You should expect lenders to consider your credit score along with other factors, such as your down payment, loan amount, and monthly debt-to-income ratio.

Where does the lender operate?

Costco mortgages are available nationwide, although the availability of specific lenders may vary by region.

mortgage calculator

Is your dream home within reach? US News’ Mortgage Calculator will show you how much home you can afford.

Is the lender trustworthy?

Although Costco is not a mortgage lender, Costco’s mortgage broker, CrossCountry Mortgage, has an A+ rating with the Better Business Bureau, but a poor rating with Trustpilot.

In 2021, the Consumer Financial Protection Bureau received 97 mortgage-related complaints about CrossCountry Mortgage, mostly related to issues during the payment process, applying for or refinancing a mortgage, and closing mortgages. a mortgage loan. The reputation ratings of individual lenders may vary.

How is the lender’s customer service?

Even if you have experience with Costco customer service, the mortgage program is managed by CrossCountry Mortgage. Reach the mortgage broker through a online contact form or by calling 877-538-8790 Monday through Friday, 8 a.m. to 5 p.m. EST.

What are some of the lender’s online features?

Digital tools depend on the lender you choose, but most offer online downloads of standard loan documents.

FAQs

Is Costco a mortgage lender?

No, Costco is not a mortgage lender. CrossCountry Mortgages manages Costco’s mortgage program and connects potential borrowers with participating lenders.

Costco mortgages are best for:

  • People who want to choose a loan from pre-screened lenders.
  • People who appreciate low set-up costs.
  • People who may qualify for loans from Costco lenders.

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