What comes to your mind when you hear about loan officers? Does the field pique your curiosity? If you feel yourself diverting towards the world of finance or economics under the shelter of customer service, becoming a loan officer might be the perfect career choice for you.
However, you must have the right skills before taking on this career path, such as having an eye for details, the spirit to support and help, and having sales skills. There is no denying that being a loan officer pays you well while checking off the things you have always wanted to do.
How Much Do Loan Officers Make?
Who Are Loan Officers?
Choosing to be a loan officer can be a great career choice for you. However, you need to know everything about this field of work thoroughly before you embark on this new journey. You need to know the responsibilities of a loan officer, salary, commissions, and ways to become a successful loan officer.
The Experts Of Lending Products
Loan officers are representatives chosen of banks, credit unions, and other similar financial institutions who bridge the gap between loan borrowers and the authorities that are lending the loan. Moreover, loan officers have the liberty to work with an array of lending products for businesses and consumer needs, respectively. At the same time, they need to have in-depth knowledge of the lending products. Besides, they should be aware of banking laws and the required documents required for the whole process.
A Great Responibility
Loan officers have immense responsibilities on their shoulders, such as helping people finance their education, getting them a new car, or buying their dream home. Loan officers play a crucial role in supporting people as they arrange the funds acquired by them so they can follow their dreams. Furthermore, along with advising a plethora of businesses and people, they evaluate and authorize loans to them too.
The Average Salary Of Loan Officers
Being a loan officer is a dream job for many, thanks to the attractive salary. According to a leading jobs website, Indeed.com, loan officers earn a hefty sum of $170,784 annually. Other than this, the Bureau of Labor states that the lowest-earning loan officers make can be around $32,820, while the highest salary they can earn is over $132,290.2.
However, the amount of earnings depends on the employer and the performance of individuals.
Correspondingly, some loan officers get a fixed salary while others manage to earn commissions or bonuses too. Nonetheless, it is essential to note that they only get commissions based on the no of loan cases they handle and how many get repaid.
What Do Loan Officers Do In Actuality?
Loan officers perform their job listed as follows,
- They contact organizations and reach out to people to ask if they require a loan
- Loan officers get in touch with interested applicants to collect their personal information
- They explain varying types of loans and requirements for each, respectively
- Loan officers investigate and verify the financial statements given by the applicant, such as monthly income and credit ratings
- They review the final agreements to make sure that they do not violate the rules and regulations
- Lastly, they approve the loan applications and forward them to concerned departments for further consideration
Usually, loan officers use underwriting software to assess the eligibility of the applicant. After they collect the required documentation, they evaluate and verify the information so they can determine if the applicant is eligible for the specific loan or not.
As underwriting software gets used, it accesses the financial statement of the applicant and generates a recommendation. Following the advice from the software, loan officers observe it closely and make the final decision. The work of loan officers comprises dealing with customer service and sales duties. Furthermore, the job duties include answering questions and guiding customers through the loan application process. Other than this, loan officers also market the services/products of their lending organizations.
What Are The Requirements To Become A Loan Officer?
You might have heard that you can become a loan officer without any prior experience. But this statement is only partially true. Understandably, the larger institutions require at least a college degree without any significant knowledge. However, mortgage loan officers usually do not need a bachelor’s degree and allow you to join the workforce as a newbie.
At the same time, you may need to get licensed before becoming a loan officer. But it depends on where you work, and it varies from one state to another. So, you can try having your research!
How To Become A Top Loan Officer?
Becoming a leading loan offer is incredibly simple as it does not involve any secret formula. Follow the tips mentioned below to ace your job as a loan officer.
Try to finalize as many loans as you can. It seems pretty evident that closing loan cases in a short period ultimately defines your success as a loan officer. You can accomplish this by strengthening your social network and by putting in enough effort.
Revitalize Your Work Ethic
Just like every career in the world, being a loan officer demands strong work ethics and rejuvenated spirits to take on new projects with an energized drive and finish them efficiently.
Work on fortifying your confidence level: When you are a loan officer, you have to put your introverted self aside. You are going to make thousands of calls, and you will be visiting offices and meetings. Therefore, being shy will only bring a downfall to your booming career. Hence, don’t be shy, as you will gain confidence eventually.
The Bottom Line
As we conclude, we know that loan officers end up making more money than well-known professions like medicine or law. Your success as a loan officer will largely depend on your drive and performance. Hence, try to give your best! And good luck!
