About the Mortgage Program for Costco Members
Costco is a multi-billion-dollar business that markets brand-name merchandise to its members. Purchasing a membership allows one to utilize both Costco.com and its more than 700 locations.
In addition to the other products and services Costco offers, Costco has partnered with First Choice Loan Services Inc. This does not mean that Costco itself is offering mortgages. Instead, First Choice is using Costco as a platform. After testing the program for a year, members can now search for a mortgage or other loan through Costco. First Choice Loan Services Inc. allows Costco members to search for lenders that offer exclusive discounts that could save them money. Members have options to search for purchase rates, refinance rates, and VA Loans. Costco members can also compare details such as interest rate, APR, and loan terms.
First Choice Loan Services Inc. and Lenders
First Choice Loan Services Inc. was founded in 2009, and is part of the Berkshire Bank Company family. First Choice and Costco released Coscto’s Mortgage Services program in 2012. Since its founding, First Choice Loan Services Inc. now has almost 500 members.
The lenders in Costco’s program include PennyMac, Berkshire Bank, Bank of Internet USA, CapWest, NBKC Bank, J. G. Wentworth Home Lending LLC, and eRates Mortgage. Contact information is provided on Costco’s website for companies interested in becoming a preferred lender.
Savings, Fees, and Promotions
Costco does not charge a loan origination fee, nor do they receive payment for loans that close. They do, however, hold First Choice Loan Services to a series of standards and oversee their processes to ensure that Costco members are being treated fairly. Those with an Executive Membership can expect lower lender fees than those with other memberships; the lender fee cap for Executive members is $350, compared to $650 for Business and Gold Star members. The fact that lender fees are capped can help members save money. On its website, Costco claims that Executive members could save approximately $6,909 during the life of the loan. Sometimes members can even find special deals and promotions related to mortgage services; for example, as of this writing, members who apply for a loan in August 2017 and close before March 31, 2018 are eligible to receive a $100 Visa gift card.
How much does it cost to get a Costco membership? If you’re looking for a Business or Gold Star membership, it will be $60 annually. Executive memberships have more perks, and cost $120 annually. You can also purchase a membership for someone as a gift.
Support and Other Services
Loan requests are done completely online; however, those who may be having trouble with the form can contact customer service for support. If, for some reason, Costco mortgage services cannot match your loan request to a preferred lender, members can modify their loan request terms and then resubmit their request.
In addition to helping customers compare mortgages, Costco has programs for identity protection, home and auto insurance, and even bottled water delivery. Whether you’re looking for a great deal on groceries or mortgages, there’s a good chance you can find one at Costco.
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