In addition to buying different convenience items, at Costco you could buy your first home
Photo: Omar Abascal / Unsplash
Costco is one of the largest wholesale stores in the United States and some parts of the world. It is characterized by its large product packages at affordable prices for millions. But something they didn’t expect is that your members could walk into the store and walk out with a new home or with a refinance of their current mortgage. That’s right, the popular warehouse store offers you to get closer to mortgage lenders with exclusive promotions for their clients.
He Mortgage Program for Costco Members is a multi-lender platform, operated by CrossCountry Mortgage, to help some members purchase or refinance a home. This does not mean that Costco offers mortgage loans directly within its commercial offering, but rather that it is an intermediary between its clients and the lenders. as a way to find the best option for your members.
How does the Costco mortgage program work?
The first step is to sign up for a Costco membership to be able to access, among other things, to buy inside its stores and also to be able to aspire to obtain a mortgage loan through the company.
Costco’s mortgage program offers a wide range of loans including conventional loans from the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) available to first-time buyers, second-home buyers and investors.
When you enter the portal Costco Mortgage Services and indicate that you want to start the process, it takes you to the website managed by CrossCountry and Affinity. There you will have to enter your basic information with your name, address, estimated amount of the mortgage loan, estimated credit score and member number.
With that information, the website offers you many options for interest rates and terms. For example, a recent search for a $ 350,000 home refinance loan yielded seven options for 30-year fixed-rate loans and seven more for 15-year fixed-rate loans.
Your offers may come from the lenders:
• Consumer Direct Mortgage
• Mutual of Omaha Mortgage
• NBKC Bank
• Strong Home Mortgage
Of all the options that appear to you, you could select up to four lenders to receive your personal information. Once you confirm that they can contact you, the representatives of those companies will call you to answer your questions.
One of the most obvious benefits is the limit on the lender’s fees attached to the loan transaction.. Without the program limit, borrowers could pay at least $ 1,500 in fees on a $ 300,000 loan. Non-members can also use Costco’s mortgage program, but will not benefit from the lender’s fee cap.
You can also get a refinance from Costco. Since 2011, the program has financed more than 222,000 loans worth more than $ 69 billion, said John Alexander, CEO and president of Affinity Partnerships, which administers the store’s program under the direction of CrossCountry Mortgage.
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