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As a loan officer, you have the opportunity to help new homeowners, small businesses and other individuals and groups meet the financial requirements they need to reach their goals. Learn how to become a loan officer and take the first step towards a lucrative career in the fast-paced financial sector.
What Is a Loan Officer and What Do They Do?
Loan officers work with businesses and individuals to facilitate the lending process. Serving as a liaison between the client and the bank, loan officers use their specialized knowledge to serve customers and establish client relationships that can last decades.
Loan officers typically specialize in commercial, consumer or mortgage loans. While using underwriting software is a simple way to determine a customer's eligibility for a loan, most commercial loans are too complex to rely completely on software. Experienced loan officers are valued for their ability to navigate these complex agreements, offering their clients a fair contract while providing a financial benefit for their employers.
With the right training, a loan officer can work confidently in a range of backgrounds. Travel may be involved as mortgage loan officers may work out of a home and commercial loan officers may need to travel to other cities to complete complicated loan contracts. Most loan officers can be found in the following locations:
The Bureau of Labor Statistics (BLS) reports that loan officers earned mean annual wages of $63,210 in 2009. That same year, loan officers working in management of companies and enterprises earned slightly more: $65,990. Loan officers living in New York earned the highest salaries of all states at $77,310. The most competitive careers and high-level management positions may tend to come with a bigger paycheck as well as more responsibility.
What Are the Steps to Becoming a Loan Officer?
Working as a loan officer is possible with a high school diploma, but for more job security and a higher salary, training is recommended. Some training, such as programs for mortgage loan officers, can be completed in a certificate program.
Training and licensure is an important step for loan officers hoping to succeed in the job market. Loan officers in all 50 states must be licensed. In order to earn a license, you must meet the following requirements:
A bachelor's degree is typically recommended for commercial loan officers. Bachelor's degrees in finance, economics and related fields prepare loan officers to work in a commercial setting. Jobs for loan officers depend highly on economic conditions. During times of high job competition, a bachelor's degree may be essential for securing a job.
The BLS reports that in addition to a college degree, aspiring loan officers with banking, lending or sales experience should have the best job prospects in the coming years. For many, entering the field as an entry level banker is a smart way to gain experience on the path towards becoming a fully licensed loan officer.
How Can You Become a Great Loan Officer?
You can learn how to become a loan officer in school, but learning to become a great loan officer takes years of experience. Moving up the career ladder as a loan officer means having the ability to adapt as the lending world changes. Great loan officers tend to fit the following personality profile:
Loan officers should be outgoing, willing to attend community events held by their employers and happy to interact with coworkers and customers alike. Loan officers walk a fine line between sales ability and financial knowledge and great loan officers make the transition from personalized service to professional knowledge with ease.
Optional certifications also increase your credibility with employers and potential clients. Whether you learn new skills or review old standards in a certification program, you can find value in the additional education as a loan officer. Consider the following specialized certification programs:
Joining professional organizations can help you stay connected with trends in the industry. For example, the Mortgage Bankers Association offers industry resources, professional development and information on conferences. At the highest level of the field, loan officers can establish career-long relationships with clients and a top level of industry awareness and skill are often rewarded with large commission sales.
The BLS reports that about 33,000 new jobs for loan officers are expected to enter the industry between 2008 and 2018, for an average growth of about 10 percent. While entry level careers in lending may be easier to come by, even a brief certificate training program offers good insurance against economic downturns and competitive job markets.
Resources for Loan Officers
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