Costco is stepping into the mortgage business with a new set of financial offerings on its website.

Costco, the popular warehouse club chain, is a great place for food, office supplies, clothing and…mortgages?

Yes indeed – Costco has partnered with First Choice Bank and 10 other lenders to offer home purchasing and refinancing products through its website in a user-driven way.

“The customer is in control; they choose who they want to call,” said Jeff Douglas, chief executive of Wyndham Capital Mortgage Inc. of Charlotte, N.C., one of the first lenders in the program. “This is a good part of our business.”

Here are some details of the new program:

• Members input their personal info and mortgage balance/loan amount on Costco’s website, which produces a list of licensed lenders in their state.
• There are three tiers of options, based on the level of membership the user has: all members can save up to $5,000 over the life of the loan; Gold Star Members have access to lender fees of $750 or less; and Executive Members can access fees of $600 or less.
• As an online real estate forum pointed out, though, the loans will be treated to the same underwriting standards as conventional loans, so interest rates could change from the original rate members receive.

Jeff Morr, founder/CEO of Majestic Properties in Biscayne Corridor and a Master Brokers Forum board member, said Costco entering the mortgage business seems like a match made in heaven.

“I imagine that Costco would have some of the best rates,” Morr said. “Costco has a good name for delivering value. I think it’s a great idea.”

Consumers, Moor explained, are always looking for the best value around, and more times than not, Costco’s warehousing system is able to provide the most competitive prices on goods and services. Also, Costco is already endowed with a large customer base and numerous sources of data on marketing to that base, so the situation would seem prime for a financial offering.

“I would have no issue recommending them,” Morr said.