Costco Finance and it’s lenders (Consumer Direct)

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angelescrest
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Costco Finance and it’s lenders (Consumer Direct)

Post by angelescrest » Sat May 11, 2019 3:02 pm

I saw that Costco does mortgage loans through various lenders they partner with.

I was working with a brick and mortar lender, with about $5700 in closing costs and a 4.375 rate. After talking to consumer direct, they basically said I could do 3.99 through them with $3700 at closing. Sounds too good to be true, but I’ve never had a bad experience through anything with Costco. The first had a great mortgage manager I spoke with, and the Consumer Direct guy sounded a little rushed.

In the end, I only need to make a sound financial decision, and am not going to pay thousands more for niceness. Any experience with Consumer Direct and Costco Finance? We put in an offer on a house this weekend.

Revision17
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by Revision17 » Sat May 11, 2019 3:20 pm

I didn't go through costco, but I got my mortgage through consumer direct (a division of First Bank). Everyone I worked with in the process knew their stuff and was friendly. The only kind of annoying thing is they called me up to lock my rate the day rates were the highest. I did agree, so my bad rather than letting it float I guess.

From other reviews I read online, Consumer Direct tries offer mortgages to as many folks as possible, and sees what sticks. That may be why they seemed rushed.

If I did it again, I think I'd get 2 mortgage lenders most of the way through the process, then have them bid against each other for the lowest closing costs and interest rates.

jbuzolich
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by jbuzolich » Sat May 11, 2019 5:50 pm

I plan to check out the Costco partner offers the next time we refi or purchase a property but we've already had great luck multiple times with aimloan.com. No relationship, but low guaranteed closing costs and we've completed multiple refinances and one purchase with them. Very quick and mostly online.

CRTR
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by CRTR » Sun May 12, 2019 12:01 am

So, I used a Costco lender and had a terrible experience and Costco did NOT help.

In 2011, I bought an investment property/condo. It was a short sale (first and second mortgage outstanding) and, it follows, there were a lot of related hassles in closing. I received ~4 GFE from various lenders (3 non-Costco, 1 Costco-Weststar). The Costco/Weststar offer had the best rate and lowest costs! I thought it was almost too good to be true so I rechecked via email and telephone that the GFE was accurate. Finally, go all through escrow, 3 days before closing, the lender emails and tells me they made a mistake and quoted the wrong rate. The new/correct rate was .375% higher, which was now higher than 2 of 3 non-Costco lenders. During the 60 day escrow, rates went up .25% so the original offers were long gone. The lender would NOT honor the original rate. Costco customer service did NOTHING to right the wrong either. They said there was nothing they could do. I suggested they tell the lender to honor the rate or be kicked out of the program . . . no luck . . .

So, needless to say, I would not recommend Costco for a mortgage.

Topic Author
angelescrest
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by angelescrest » Sun May 12, 2019 12:10 am

CRTR wrote:
Sun May 12, 2019 12:01 am
So, I used a Costco lender and had a terrible experience and Costco did NOT help.

In 2011, I bought an investment property/condo. It was a short sale (first and second mortgage outstanding) and, it follows, there were a lot of related hassles in closing. I received ~4 GFE from various lenders (3 non-Costco, 1 Costco-Weststar). The Costco/Weststar offer had the best rate and lowest costs! I thought it was almost too good to be true so I rechecked via email and telephone that the GFE was accurate. Finally, go all through escrow, 3 days before closing, the lender emails and tells me they made a mistake and quoted the wrong rate. The new/correct rate was .375% higher, which was now higher than 2 of 3 non-Costco lenders. During the 60 day escrow, rates went up .25% so the original offers were long gone. The lender would NOT honor the original rate. Costco customer service did NOTHING to right the wrong either. They said there was nothing they could do. I suggested they tell the lender to honor the rate or be kicked out of the program . . . no luck . . .

So, needless to say, I would not recommend Costco for a mortgage.
Ouch!

Yeah, I am not feeling like I trust the 3.99 that was quoted to me today. It turns out my credit scores (they take the middle of the three, which was 733) is just under the Excellent level, unfortunately, but the other established brick & mortar lender offered me 4.375. Does that sound like a decent rate to you all? Been great service so far, with closing costs estimated about $5700.

CRTR
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by CRTR » Sun May 12, 2019 8:39 am

angelescrest wrote:
Sun May 12, 2019 12:10 am
Ouch!

Yeah, I am not feeling like I trust the 3.99 that was quoted to me today. It turns out my credit scores (they take the middle of the three, which was 733) is just under the Excellent level, unfortunately, but the other established brick & mortar lender offered me 4.375. Does that sound like a decent rate to you all? Been great service so far, with closing costs estimated about $5700.
For a 30 year, fixed, jumbo loan, owner-occupied? That sounds pretty good although you can do a little better. For a 15 year fixed, that's not very good.

I used Zillow.com, Aimloan and Bankrate.com to shop lenders. I ended up using Zillow because I liked the lenders all had multiple customer reviews. To be honest, I know people who had good experiences going through Costco and also through other sources.

omibogle
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by omibogle » Sun May 12, 2019 12:00 pm

I got 2 loans thru Costco for 2 investment properties. Went with JG Wentworth from the list of quotes they offered. Service was good, everything was done remotely and rate and closing costs were very good as well. Costco caps how much a lender can charge in broker fees, so you are guaranteed low closing costs.

Topic Author
angelescrest
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by angelescrest » Mon May 13, 2019 7:57 am

CRTR wrote:
Sun May 12, 2019 8:39 am
angelescrest wrote:
Sun May 12, 2019 12:10 am
Ouch!

Yeah, I am not feeling like I trust the 3.99 that was quoted to me today. It turns out my credit scores (they take the middle of the three, which was 733) is just under the Excellent level, unfortunately, but the other established brick & mortar lender offered me 4.375. Does that sound like a decent rate to you all? Been great service so far, with closing costs estimated about $5700.
For a 30 year, fixed, jumbo loan, owner-occupied? That sounds pretty good although you can do a little better. For a 15 year fixed, that's not very good.

I used Zillow.com, Aimloan and Bankrate.com to shop lenders. I ended up using Zillow because I liked the lenders all had multiple customer reviews. To be honest, I know people who had good experiences going through Costco and also through other sources.
30 year conventional loan, fixed, owner-occupied.

Jags4186
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by Jags4186 » Mon May 13, 2019 8:08 am

FWIW I am currently refinancing a 30 year conventional to 4% with a $2173 lender credit to cover all refinance fees. I just need to come up with escrow fees which will transfer from my current account. $0 out of pocket for me. I’m hoping I can shave another 1/8 a point off if things keep going the way they are before we close.

I went through the cheapest lender option on bankrate.com. I recommend looking there as Costco/JG Wentworth was unwilling to beat it and will be sending a $250 check because they could not meet their “best rate guarantee” promise.

willygreen
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by willygreen » Mon May 13, 2019 8:22 pm

Just refinanced through the JG Wentworth through the costco website. Paid only $275 in loan costs with the most competitive rates. The other closing costs were the normal title insurance, credit reports and prepaid escrow. The title company sent a notary to my house to complete the paperwork, and he couldn't believe that it was only $275 with that rate.

The whole process was smooth and only took a few hours of my time.

When I got the original mortgage I went through bankrate.com and that worked out well too. On the refi JG Wentworth was the best I could find.

megabad
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by megabad » Tue May 14, 2019 9:07 am

Make sure you are comparing apples to apples when looking at mortgage comparisons. The phrase “closing costs” are being used above without a clear definition. You would need to know what is included in that estimate. I typically compare APR to APR and most “closing costs” are not part of this. As a side note, Current market APR rate for 30 yr conventional is about 4% so the rates indicated here are not alarmingly low to me so I wouldn’t be nervous about the rate. Of course you must always get a rate lock (when you are close to purchase) to prevent any switcheroo as indicated by an above poster. This is standard procedure with most banks I have worked with.

Isabelle77
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by Isabelle77 » Tue May 14, 2019 11:53 am

willygreen wrote:
Mon May 13, 2019 8:22 pm
Just refinanced through the JG Wentworth through the costco website. Paid only $275 in loan costs with the most competitive rates. The other closing costs were the normal title insurance, credit reports and prepaid escrow. The title company sent a notary to my house to complete the paperwork, and he couldn't believe that it was only $275 with that rate.

The whole process was smooth and only took a few hours of my time.

When I got the original mortgage I went through bankrate.com and that worked out well too. On the refi JG Wentworth was the best I could find.
Same here. Great experience. We didn't escrow and didn't require an appraisal so it literally was just a few hundred dollars.

baseball2horse
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by baseball2horse » Tue May 14, 2019 2:40 pm

I used a Costco partner to fiance my mortage and it was a great experience. Even accounting for the fact that I had to purchase my costco membership, the closing costs were ~1500 all in with a 4.5% rate which was the best anyone had offered me without points. Their "broker fees" were actually negative and so wwere able to go towards some of the title taxes ect.

With my redfin refund I paid about 300 in total closing costs

Topic Author
angelescrest
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by angelescrest » Tue May 14, 2019 10:09 pm

baseball2horse wrote:
Tue May 14, 2019 2:40 pm
I used a Costco partner to fiance my mortage and it was a great experience. Even accounting for the fact that I had to purchase my costco membership, the closing costs were ~1500 all in with a 4.5% rate which was the best anyone had offered me without points. Their "broker fees" were actually negative and so wwere able to go towards some of the title taxes ect.

With my redfin refund I paid about 300 in total closing costs
Which lender were you using? Seems like it varies quite a bit, in service quality, from the various people I've spoken to. And do you mind sharing your credit score?

Topic Author
angelescrest
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by angelescrest » Tue May 14, 2019 10:09 pm

Isabelle77 wrote:
Tue May 14, 2019 11:53 am
willygreen wrote:
Mon May 13, 2019 8:22 pm
Just refinanced through the JG Wentworth through the costco website. Paid only $275 in loan costs with the most competitive rates. The other closing costs were the normal title insurance, credit reports and prepaid escrow. The title company sent a notary to my house to complete the paperwork, and he couldn't believe that it was only $275 with that rate.

The whole process was smooth and only took a few hours of my time.

When I got the original mortgage I went through bankrate.com and that worked out well too. On the refi JG Wentworth was the best I could find.
Same here. Great experience. We didn't escrow and didn't require an appraisal so it literally was just a few hundred dollars.
Thanks, was this purchase or refinance, and which lender?

Isabelle77
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by Isabelle77 » Tue May 14, 2019 10:15 pm

angelescrest wrote:
Tue May 14, 2019 10:09 pm
Isabelle77 wrote:
Tue May 14, 2019 11:53 am
willygreen wrote:
Mon May 13, 2019 8:22 pm
Just refinanced through the JG Wentworth through the costco website. Paid only $275 in loan costs with the most competitive rates. The other closing costs were the normal title insurance, credit reports and prepaid escrow. The title company sent a notary to my house to complete the paperwork, and he couldn't believe that it was only $275 with that rate.

The whole process was smooth and only took a few hours of my time.

When I got the original mortgage I went through bankrate.com and that worked out well too. On the refi JG Wentworth was the best I could find.
Same here. Great experience. We didn't escrow and didn't require an appraisal so it literally was just a few hundred dollars.
Thanks, was this purchase or refinance, and which lender?
Refinance and JG Wentworth as well.

Topic Author
angelescrest
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by angelescrest » Thu May 16, 2019 12:45 pm

At this point, I've only got two concerns left. First, since our current house will take some time to sell (rural area), I would be putting 10% down on the new home. The lenders are saying they can "recast" the loan after I sell my house, and put the equity into the new home. Apparently this is pretty common.

I spoke with First Choice (part of Costco finance), and I am leaning towards using them over Consumer Direct as my point of contact has a lot more experience and better manners. However, he said that since they do sell the loan, they can't guarantee me the option to recast my loan (to bring payments down), but that there's a 80-90 percent chance I should be fine. What do you all think about that?

With lender #1 it's like $1500 in lender costs, and 4.25%. With First Choice (Costco finance), it's $275 and 3.99%. Lender #1 has amazing service, brick and mortar, and also very confident we'd close in 30 days. Pre-qualified with them.

Can anyone comment on how the Costco finance lenders have done on meeting closing time (30 days) without delays, for a purchase?

DP737
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Re: Costco Finance and it’s lenders (Consumer Direct)

Post by DP737 » Thu May 16, 2019 2:24 pm

Edit: sorry, just noticed that you specified purchase, mine was a refinance.

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