Costco Finance Review

 Loan typesMortgages, Refinancing, Home Equity Loans
 Loan featuresVaries
 Repayment Terms   Depends on lender, ranges from 5 to 30 years
 ProRigorously vetted network of lenders
 Top ConNo physical locations
 Best forCustomers looking for flexible origination fees


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Costco Finance at a Glance  

​Costco Finance is the financial services branch of the wholesale giant Costco. The company started their financial services offering in 2010, and have since become an established player in the field. Costco has partnered with several high-profile and rigorously vetted financial partners who provide their services through the company’s portal. Today, Costco Finance has helped more than 72,000 members acquire or refinance their mortgages. The company assists customers with accessing the funds they require quickly and efficiently, and connects them to the best possible match for their mortgage needs. 

Excellent Mortgage Alternatives

Best for Whom?

Thanks to their straightforward and speedy application, Costco Finance can quickly connect its customers to the right mortgage provider in their network of partners. The company is ideal for those customers who are looking for an uncomplicated way to find the right loan for their new home, or even to refinance their existing mortgage. Thanks to the competitive rates and reputations offered by their partners, Costco’s relatively young service has become a go to for those people who are looking to bypass the red tape many traditional lenders require while still benefiting from a reliable service provider. Moreover, for members of Costco’s wholesale stores, their mortgage offerings deliver an ideal way to receive low origination fees and extra benefits during application. 

Loan Features​

Costco Finance does not directly offer mortgages, but rather works with an extensive network of mortgage lenders that can deliver these financial services. However, Costco plays an active part in the loan application process, helping to preapprove potential borrowers before connecting them with the best possible match. Moreover, the company’s preapproval process is even better for customers who are also members of Costco’s wholesale branch. Members can significantly lower their lender fees, and save thousands of dollars over the course of their mortgage term. Costco helps customers with more than just purchasing homes; the company’s loan partners can also assist customers with refinancing, home equity loans, and even offer veteran loans. A simple comparison tool lets potential borrowers view the different available lender matches, empowering customers to access the best terms possible before making a decision about the best financing fit.

  • A network of heavily vetted financial service partners
  • Costco members receive discounts on lender fees
  • Straightforward preapproval process
  • Receive approval for loans in as little as 17 days
  • A hard cap on origination fees, translating to savings for customers
  • Compare different loan options available
  • Get a mortgage or refinance an existing one
  • Home equity loans also available

The Application Process

Applying for a mortgage through Costco Finance is a straightforward and swift process. To get started, the company asks customers to fill out a preapproval form. This includes basic questions and details regarding their preferred loan scenario, as well as some information regarding their personal finances. During this stage of the application, customers are asked to present documents about assets, income, and a debt ratio to determine the best possible financing matches. Additionally, customers will be asked about their employment status and credit to determine how large their mortgage loan can be. Once preapproved, Costco Finance will present a series of potential matches for each customer based on their borrowing characteristics, allowing them to choose the best fit. Customers will then negotiate specific terms directly with their lender. 

Loan Terms – The Bare Basics

There are several great aspects of Costco Finance’s mortgage offerings. Though not directly a loan provider, Costco only operates with a small network of lenders that have been thoroughly vetted to offer reliable and transparent mortgage services. The company’s main partner, First Choice Loan Services, is a young but already well-regarded financial services provider based out of New Jersey. In addition, Costco leverages these partnerships to offer its customers a better range of mortgage choices than competitors.  Furthermore, borrowers can choose their preferred rates and provider without any preconditions or fees payable to Costco.

Another aspect is that that Costco uses its status and membership to offer excellent discounts and better rates for its consumers. When applying for a mortgage, Costco members can receive a sharp discount on lender fees depending on their subscription tier. Executive members are eligible for reduced lender fees, which include application, commitment, underwriting, and processing for as low as $350. Mortgage lender fees for Gold members start at $650. This compares very favorably with competitors, who on average charge between $1,000 and $2,000 for such fees.

Another positive aspect of Costco’s lending process is how quickly customers can go from searching for a loan to closing on their preferred mortgage. On average, the process of closing on a loan can span between 17 to 45 days. This is excellent for those borrowers who need to receive a mortgage quickly to close on their preferred residence. Costco’s partners also offer refinancing loans, home equity loans, and even veteran loans, adding to the overall appeal of their services. 

Repayment Terms

Costco’s network of loan providers offer very favorable terms for potential borrowers. Costco does not directly list terms and rates on its website, as they are generally negotiated between customers and their lender match. However, most providers offer a wide range of term options for both fixed and adjustable rate mortgages. Generally, these terms can range from 5 years to 30 years. The amounts offered by Costco’s partners are astonishing, ranging from as low as $75,000 up to an impressive $10 million. 

How Safe is It? 

Costco’s website puts a strong emphasis on its customers’ security. The company is very transparent about how it stores customers’ data, as well as what information they collect. The company gathers certain personal details based on customer interactions with its website and support staff, but it does not disclose it to employees, and access is heavily restricted. Furthermore, the company does not share any personal information without express consent, except in cases where it is required by law enforcement to disclose details. All customer information is stored on secure servers that are protected by physical, electronic, and procedural safeguards that meet the strictest industry standards. 

Help & Support

To reach Costco Finance’s support services, customers can contact them via email or telephone between Monday and Saturday from 9:00 am to 9:00 pm ET. The company’s support staff are well-versed in their services and generally courteous. Support agents on the phone are quick to answer queries after a minimal wait time. Over email, inquiries are responded to in as little as one business day with answers that are thoughtful and helpful. 

Deep Dive into Pros and Cons

There is a lot to like about Costco Finance’s service offering, although there are areas where the company could improve to deliver an even better customer experience:

  • There could be more channels of communication for customer support.
  • The company could expand its educational resources and include a blog, which most loan providers offer to educate potential borrowers.
  • There is little direct information regarding representative terms and rates for any of its partners.
  • You can only submit documentation online, and not through any physical means including mail or fax.

However, there were many aspects of the company that are impressive:

  • The company’s loan partners are all well-regarded and offer excellent services.
  • The preapproval process is straightforward and only takes a few minutes to complete.
  • Closing on terms for a mortgage is short and efficient.
  • Costco can offer customers an excellent variety of mortgage choices to find the best fit alongside great discounts for existing members.
  • Customer support channels that are available feature excellent response times and well-trained staff.

So, Should You Borrow with Costco Finance?

By and large, there is much to like about Costco’s mortgage offerings. The company’s partners are thoroughly vetted to guarantee that borrowers are only working with the most reputable and transparent lenders with rates and terms that are very competitive for the industry as a whole. Costco helps customers with preapproval, making the task of eventually finding an appropriate mortgage lender much simpler. In addition, the company’s offerings to customers empower them to discover the best possible solution, and not just be forced to accept the first mortgage offer they find. Overall, Costco’s excellent service and their outstanding mortgage lending partners are impressive. 

Physical Address

First Choice Loan Services Inc.

One Tower Center, Floor 18

East Brunswick, NJ 08816



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