Loan Officer Career
Considering a career as a Loan Officer? Find out all you need to know to decide whether this career is right for you.
- What does a Loan Officer do?
- How to become a Loan Officer?
- What is a Loan Officer's Salary?
- How does the future look for a Loan Officer?
What does a Loan Officer do?
The role of a Loan Officer is to provide clients with loans or financing options that meet their needs while also supporting the business interests of lending institutions.
There are three main areas where Loan Officers are employed:
In commercial financing, Loan Officers supply business owners with loan options for purchasing such things as equipment, credit lines or loans for a future project's operating expenses. Consumer loans are those issued for purchasing cars or extending personal lines of credit. Mortgage loans are the largest specialization for Loan Officers. Mortgage loans consist of real estate buying and refinancing on current mortgages.
As a Loan Officer, you will need a variety of skills. Fundamentally, you will need to be proficient with computers and the current software used to analyze clients' credit "scores". The use of technology has drastically reduced the work load of Loan Officers and Loan Underwriters. You can expect this trend to continue since it has been saving lending institutions considerable amounts of money.
Secondly, as a Loan Officer, you will need to have excellent interpersonal skills. As with real estate agents, many Loan Officers who make their salaries through commission find their livelihood rests on their ability to make strong relationships and generate referrals. It is very important to create strong symbiotic relationsihps with real estate agents and others who are in frequent contact with individuals who are in the market for loans.
One more attribute of successful Loan Officers is one that is often overlooked, strong communication and presentation skills. Loan Officers will frequently speak with individuals who are unfamiliar with the process of acquiring a loan and the concepts involved. Loan Officers who have the ability to effectively communicate financing concepts and options will help their clients feel at ease.
The career of a Loan Officer can be very rewarding both financially and personally. You will spend much of your time working with your clients or your lending institutions. Once firmly established, working hours may be reduced while still generating significant revenue.
How to Become a Loan Officer?
Educational requirements may vary slightly depending on the company, the area you wish to work and your previous work experience.
For most Loan Officer careers, the minimum educational requirement is the completion of a Bachelor's degree. However, there are some organizations who hire individuals with an Associate's degree in Business who also have work experience in a similar field.
If you are interested in advancing your career as quickly as possible, then you may wish to earn an advanced degree such as an MBA with an emphasis in Finance.
In a hurry? Request free information from some of the top online schools offering Master's or MBA programs.
What is a Loan Officer's Salary?
As a Loan Officer, your salary can vary significantly depending on your level of experience, your level of acquired education and size of the company you work for.
The median salary* for a Loan Officer is $51,800.
The top 10% of Loan Officers are pulling in an average of $107,000.
In order to boost yourself to this level of success, you will need to perform highly, develop years of experience at a respectable company and lastly, earn yourself an advanced degree.
Request information from some of the top online schools in the United States. Online schools are becoming more popular for the working professional and are already highly respected in the business arena.
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* Source: The Bureau of Labor and Statistics for 2006
How does the future look for a Loan Officer?
The job outlook for Loan Officers looks promising for those who have advanced degrees or have proven themselves to excel in the industry. However, overall job growth will be slower for Loan Officers than the average career in the United States.
The main reason for the decrease in demand for Loan Officers originates with the introduction of computers and new software that helps Loan Officers reduce their own workload. For motivated and technologically savvy Loan Officers, the future is looking increasingly profitable.
The Bureau of Labor and Statistics projects job growth for Loan Officers will grow by 8% from 2004 to 2014.
The future looks bright for the Loan Officer profession, so go ahead and get started!
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