Costco isn’t in the mortgage lending business itself, but rather markets mortgages from other lenders, Marketplace.org notes.
The giant warehouse retailer has teamed with a number of banks and financial lenders, including First Choice Loan Services, to offer mortgages to between 10,000 and 30,000 Costco members.
A Costco representative notes that the retailer offers its members security by checking out lenders before offering their loans through its program. It also works to obtain lower fees and interest rates for its members.
Consumer advocates advise mortgage seekers to shop around and compare rates, fees and closing policies from a number of lenders before putting their signature on a mortgage loan.
Shares of Costco rose about 1% in mid-day trading on Thursday.