A loan officer can help those who need to take out loans from a bank or credit union to purchase homes, fund their businesses, or meet other objectives. Find out about the skills of a loan officer pay, salaries, qualifications, and the steps for a loan officer to be one.
The importance of loans can be crucial for families who want to purchase their first home, students attempting to go to college, or small-business owners looking to grow their businesses. The loan officer is the mediator between the individuals with the institution that will help them reach their goals.
What exactly is a loan agent?
The term loan agent refers to a professional in finance who aids small businesses and companies in taking out loans to achieve goals such as buying a house or purchasing new equipment to expand an enterprise. A loan officer can guide potential borrowers throughout the borrowing process, which includes the conditions of the loans.
Loan officers can help people as well as companies to borrow money through the following types of loans:
- Mortgage loans
- Education loans
- Small business loans
- Car loans
What exactly does a loan agent do?
The general duties and duties include evaluating, approving, and recommending loan applications of prospective borrowers. Loan officers are employed in financial institutions like banks, credit unions, and mortgage firms.
Particular tasks could include:
- Examining and evaluating loan applications
- In assessing the creditworthiness of borrowers by looking at their financial history (a procedure referred to as underwriting)
- Training and consulting borrowers about the terms of loans
- answering questions of borrowers and offering customer service
How much do loan agents earn?
Based on the US Bureau of Labor Statistics (BLS), the median annual wage for an employee of a lending institution working in the US is $63,380 11. The amount you earn can be lower or higher based on many factors, including the firm you work for, your work skills and experience, and your location.
For instance, Zippia’s salary information for loan officers across the US indicates which states have the most average wages comprised New Mexico ($58,677), Maine ($57,334) as well as Rhode Island (54,195). States with the lowest median wages are Idaho ($32,486), Utah ($33,138), along with Mississippi ($37,680). The lowest average salaries are Mississippi ($37,680) and Utah ($32,486). 22.
Based on the pay structure, an officer could earn bonuses or commissions on loans they arrange.
Job prospects for loan officers
The number of loan officers employed is expected to increase by 4 percent between 2021-2031, as per the BLS.
How do you get a job as a lender?
If you want to start your career as a loan officer, Follow these steps to simplify your procedure.
Think about earning an education.
There is no formal education requirement to become an officer in the field of loans. However, most employers look for applicants with a minimum bachelor’s level. According to Zippia, most loan officers have a bachelor’s degree, and 17 percent possess an associate’s degree 33. An education in economics, finance, or any other field that is related to banking will give you the knowledge needed for the position of a loan officer.
Find out additional loan officer qualifications.
The requirements for obtaining a loan officer license can vary between states. However, loan officers who want to work with mortgages must meet federal requirements. The loan officers must obtain Mortgage loan Originator (MLO) licenses in their state and then register at the National Mortgage Licensing Service (NMLS). Obtaining a license could require taking a course, passing a test, and completing an identity and credit check.
Learn to become a loan officer.
According to the information that ZipRecruiter gathers information from resumes of loan agents as well as descriptions of jobs, the top sought-after loans officer qualifications are 4[ 4 ]:
- Loans for mortgages are available to qualified customers to be eligible for loans, obtaining the necessary documents and details from the customers and informing them about the process, policies, and procedures.
- customer service to verify customer information, keep customers, and handle calls
- Communication is used to determine the needs of borrowers’ finances, answer any questions, and aid borrowers in applying for loans.
- Documentation used for collecting and validating documents related to the loan
- Microsoft Office: for organizing, storing, and presenting information
- Relations management to build relations with clients and make use of the CRM program to monitor information about loan and customer details
Other talents that can aid your career as a loan officer include:
- Analytical abilities used to assess the financial statements of potential lenders and creditworthiness, as well as knowing how markets function
- The management of time as well as the ability to organize to handle the required paperwork in detail to be completed for each loan
- Working knowledge of applications for banking and financial: to help service loans and general computer skills that allow you to adapt to the new digital technologies and platforms
Career development tip:
Zippia and ZipRecruiter could be helpful websites to keep you updated on the skills and qualifications employers seek when hiring loan officers. These websites collect data from real resumes and job descriptions, making it simpler to determine which skills you should develop when planning your following career change.
Apply for loan officer positions.
If you are ready for your job hunt, take the time to revise your resume, practice interviewing techniques, and browse the current job listings. For instance, at the time of writing this article, January 20, 2023, here is the list of loan officer open positions on three of the most popular websites for career development:
- The Glassdoor website: 2251 jobs posted
- LinkedIn:3,922 job postings
- Indeed1,478 job postings
Employers from the following industries are currently hiring loan professionals in the following areas: finance, construction, education as well as public administration and government, Human resources, healthcare IT as well as legal services, insurance, media and communications, and management and consultancy.
The next step is to become a lending official.
The first step in your journey towards becoming a credit agent will set you up to work in a crucial and lucrative job. A job in financial services or the general financial sector might be a good match with a class such as Personal and Family Financial Planning at the University of Florida. University of Florida.
