CapWest Mortgage Review
Every once in a while, I’ll take a look at a specific mortgage lender or product to determine the good, the bad, and the ugly.
Today we’ll take a look at a mortgage lender named “CapWest Mortgage,” which is one of the bigger online players.
If you do a search for mortgage rates online, there’s a decent chance they may show up on your radar.
They’re actually a division of Farmers Bank Trust. which is a 104-year-old family-owned bank out of Kansas.
The age of the bank is actually one of the “benefits” CapWest highlights, with age presumably being on your side when it comes to quality and service.
Of course, we all know that some of the oldest institutions can still give you a raw deal, so one shouldn’t bank on age alone.
While that’s fine and dandy, it’s not all that different from any other major lender out there.
What Sets CapWest Mortgage Apart?
Well, for one, they’ve got a “Customer for Life Program,” which includes VIP service (whatever that means), $997 off future loan transactions, and guaranteed mortgage rates below the national average.
There’s also less paperwork and a streamlined process for those who previously received their mortgage from CapWest, which many other lenders offer as well.
For the record, CapWest’s standard lender fees are $997, so they’re essentially waived on subsequent loan transactions.
Of course, you still have to pay normal third party fees and all prepaid items, so it’s not a no cost loan .
Additionally, if you refer a friend, they’ll receive 50% off the standard lender fees. That’s roughly $500 off.
Discounts for Costco Members
CapWest also offers a discount to Costco members, as they are an approved mortgage lender with the large warehouse shopper.
Per Costco, all “preferred lenders” are rigorously evaluated before being selected to participate, so at least you know CapWest has some accountability.
As far as discounts are concerned, Costco Goldstar Business members receive $300 off lender fees, and Executive members get $400 off.
In other words, Costco Goldstar Business members should pay $697 in bank fees, while Executive members will pay $597.
CapWest also notes that additional rebates are offered to Costco members, though they don’t specify what they are.
It’s unclear if borrowers can receive both the Costco discount and the refer-a-friend discount in conjunction with one another, but the latter would be the bigger stand-alone discount.
Final Word on CapWest
While CapWest offers some decent benefits, they may not offer the lowest mortgage rates.
Additionally, you may be better served with a lender who can waive all your lender-related fees (and even some third party fees) with the use of a lender credit. and also offer you a lower mortgage rate.
Seeing that the lender fees aren’t that expensive to begin with at CapWest, you may want to focus more of your energy on mortgage rates, which can cost you a lot more money over the life of the loan.
After all, a mortgage rate that is a quarter or a half percentage point lower will surely save you big money over time.
That said, CapWest can certainly be included in your mortgage search, especially if you’re a Costco member, but you shouldn’t stop with one mortgage quote .
Get multiple quotes from mortgage brokers. your own bank, and online lenders to determine who has the best deal for you, all gimmicks and discounts aside!
Long and short of it was needing to refi the house this year, and with all the hoopla of the housing crisis/recession wasn t sure who to go through but had noticed a number of services offered through Costco so figured would give them a try.
Now they are in some ways like Lending Tree in that you put in your details and you get a handful of lenders to choose from. Cap West ended up being the one we went with and much to our displeasure.
After 2 months we failed to close the deal and I completely blame this company for it not going through.
Some of the issues we had with the company.
Failure to respond in a timely manner
Failure to process documentation properly
Failure to properly communicate critical details
Failure to respond to direct questions
Asking questions about details that have been clearly explained multiple times
Lying (this may seem a bit harsh, but a scenario occurred where we had not heard from them for a few days and inquired about the refi status, they said they were waiting from a response from us to which we never received any communication requesting this. They failed to send out a email but said they did.)
Most of the frustration stems from what basically appears a general inability to properly execute basic job functions (keeping the client up to date, following up on questions, and understanding what is being said). Too often did we have situations requesting documentation that had been clearly spelled out beforehand. Requesting documentation because they didn t think it would be needed .
TL;DR If you are looking to refi through Costco, avoid Cap West and research thoroughly especially the reviews about the process/experience. We just took the Costco affiliation to mean something.
We had a great start; their sales team promising everything everything at least as good as the competition. But their loan processing and underwriting departments apparently don t know what all documents they need. Not in the beginning at least. And not intermittently when they keep asking for new documents every so often once you have provided them with what they asked earlier.
Due to their negligence, my loan got delayed by well over a month and we received seller s warning letter.
On top of this, Capwest added additional charges since the loan was not closed within the original timeframe.
So I paid extra to Capwest (for their delays), I had to evacuate my home and stayed in hotels (additional expenditure), not to speak of the excessive inconvenience and never knowing when the loan will be closed.
I d recommend you to go to any local Mortgage Company maybe someone that you can work with face-to-face at times. Don t go with Capwest; or else ensure you know and understand what you are signing (carefully read the electronically sent documents also) and ensure they are accountable for any delays.