Costco Mortgage Review 2023 | US News

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Editors’ note: Costco no longer offers this program.

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The Costco mortgage program’s lenders offer a variety of loans options, which include:

  • Conventional 10-, 15-, 20- and 30-year mortgages.
  • 7/1 and 5/1 adjustable-rate mortgages.
  • First-time homebuyer mortgages.
  • Low-down-payment mortgages.
  • Jumbo loans.
  • Federal Housing Administration loans.
  • Department of Veterans Affairs loans.
  • Refinancing.

On Costco’s 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 across the board, each lender’s origination fees are capped at $250 for executive members and $550 for gold star members.

The terms, fees and conditions will vary by lender. That said, you likely need at least a 620 FICO credit score to qualify for a loan in the program.

The mortgage program’s main value is in its low lender fees, which put a $250 cap on origination fees for executive members and $550 for gold star members. Lenders may offer additional discounts, such as autopay or return customer discounts.

Find which loan offers you qualify for by using Costco’s lender search tool. You can select options, including your property value, your down payment amount and a credit score range from 620 to 850. Search for results and adjust your settings, such as your down payment, if you don’t get the preferred results.

What Credit Score Do You Need? 

Costco’s lender search tool only shops for loans available to borrowers with a 620 credit score 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.

Costco mortgages are available nationwide, though specific lender availability may vary by region.

While Costco isn’t 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, primarily related to trouble during the payment process, applying for or refinancing a mortgage, and closing on a mortgage. Reputation ratings for individual lenders may vary.

While you may have experience with Costco’s customer service, the mortgage program is handled by CrossCountry Mortgage. Reach the mortgage broker through an online contact form or by calling 877-538-8790 Monday through Friday from 8 a.m. to 5 p.m. Eastern Time.

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

 

Is Costco a Mortgage Lender?

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

  • People who want to choose a loan from pre-selected lenders.
  • People who value low origination fees.
  • People who can qualify for loans with Costco’s lenders.

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