What does a Loan Officer do?

Loan officers review, authorize, and recommend personal and commercial loans for approval. Loan officers meet with applicants in order to determine their creditworthiness. They usually work at mortgage companies, commercial banks, credit unions, and other financial institutions.

Most loan officers have a Bachelor's degree in business administration, finance, economics, or a related field, and are trained on the job. Residential mortgage loan officers must be licensed. Loan officers generally need strong sales and interpersonal skills.

  • Sell loan products and meet loan production targets
  • Perform business development tasks, including managing the pipeline by generating leads and referral business, and maintaining relationships with existing and past clients
  • Meet and communicate with applicants to explain the risks and benefits, as well as the terms of loan products and government regulations
  • Obtain relevant information and evaluate applicants' financial status, including credit history, debt-to-income ratio, and appraisal reports, to determine recommendation for loan approval
  • Ensure all necessary information and documentation is submitted to the loan underwriting department, and is recorded properly in electronic file format
  • Represent the employer at community events and host seminars
  • Maintain current knowledge of all applicable lending regulations, the economy, market rates, vendors, and competitors
  • Consistently deliver first-class customer service
  • Associate's degree or Bachelor's degree in business administration, finance, economics, or a related field
  • 2+ years of experience in the mortgage lending, banking, or real estate industry
  • Strong Microsoft Office skills and ability to use relevant industry-specific computer programs, as well as calculators
  • Exceptional interpersonal skills and strong customer service orientation
  • Excellent written and verbal communication skills
  • NMLS license required
  • Ability to work both in a team and independently

Average Years of Experience

0 - 1
14%
2 - 4
74%
5 - 7
5%
8+
7%

Common Skill Sets

BS Degree
Negotiation
Business Writing
VERBAL Communication
Interpersonal and Communication
Excellent Customer Service
Written Communication
Spreadsheets

Loan Officer Seniority Levels

L2
Loan Officer
$56,625/yr
L4
Underwriting Assistant
4% made the transition
Loan Processor
17% made the transition
See Career Path

Loan Officer Salaries

Average Base Pay

$56,625 /yr
Same as national average
Not including cash compensation
See More Insights
$24K
Median: $57K
$132K
See More Insights
Glassdoor Estimated Salary

Loan Officer Jobs

Loan Officer Interviews