What does a Loan Officer do?
Loan Officers work for financial institutions, usually banks, to sell financial services and loans to customers based on their needs and qualifications. Loan Officers conduct meetings with people who want a loan to buy a home, purchase a car or start a business. Loan Officers commonly work with homebuyers, but they can take on clients with different goals. They study lending regulations and work with clients to gather the necessary financial documentation to move forward with an application. Loan Officers recommend clients for approval to begin the underwriting process or explain their reasons for denying a request.
Loan Officer skills and qualifications
Loan Officers should have a variety of practical skills for their position. The main skills and qualifications of a Loan Officer are:
- Experience with mortgage loan software programs
- Communication skills
- Supervision skills to direct junior staff
- Sales skills to sell loan-processing services to customers
- Excellent organizational and time management skills
- Knowledge of federal, state and local levels of loan processing laws and regulations and ability to communicate these laws in a non-technical and conversational manner to others
Loan Officer salary expectations
A Loan Officer makes an average of $91,582 per year. Salary may depend on the applicant’s level of experience, education and geographical location.
Loan Officer education and training requirements
The minimum educational requirement for Loan Officers is a high school diploma or GED. Computer courses focused on loan software are also helpful. Employers prefer to hire Loan Officer candidates who have at least an associate degree in banking and finance. A bachelor’s degree in finance or economics may be more beneficial.
Licensing is not always required. Mortgage Loan Officers, however, require a Mortgage Loan Originator (MLO) license. An MLO license requires credit and background checks, a minimum of 20 hours of coursework and a passing score on the MLO exam.
Loan Officer experience requirements
Loan Officers need several years of relevant work experience, particularly in customer service and the finance industry, such as a Teller position at a bank or accounting work. Experience in the fields of finance, accounting and banking are useful tools for a Loan Officer’s career.
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