The best reasons to become a loan officer

Reasons to become a loan officer

Loan officers work for banks and other financial institutions. Their job is to help people trying to find and get a loan for things like education, buying or renovating a house, buying a car, or any other significant expense.

Although loan officers work in all different areas, most of them work with mortgage lenders to help people get the money they need to buy a home or condo. These loan officers are sometimes also known as mortgage loan originators, or just “MLOs” for short. MLOs must be licensed by the National Mortgage Licensing System (NMLS). MLOs are the most common type of loan officer. When most people hear the words “loan officer,” they usually associate it with someone who works with mortgage loans, although this is not always the case.

What does a loan officer do?

Loan officers have many different jobs. These include:

  • They check the applicant’s credit score and financial background to see if they are a safe investment to lend money to.
  • They explain the details of various loans and the loan agreement terms to customers so that their customers understand what is involved, including payment plans and interest.
  • It offers different loan options to the customer and helps them find the one that works best for each loan applicant.
  • Be reliable and helpful to customers and be available to answer any questions. Customers rely on loan officers for them throughout the loan process.
  • Source of loans as well as processing.
  • Source, recruit, and bring new loan customers to apply for loans.
  • Follow up with borrowers when needed.

8 Reasons to Become a Loan Officer

There are many benefits to working as the loan officer, such as the ability to help people, a good work environment, career growth opportunities, and good pay. Here is a list of some benefits of being a loan officer.

1. Rewarding work

Working as a loan officer can be a good career choice. This is because by helping people get a loan, loan officers help people realize important moments in their lives. Milestones like buying your first home or getting a college education are inspiring and can be life-changing for people, and often people need a loan to make such dreams come true. In addition, it can be very satisfying to help people achieve their goals.

2. Positive work environment

Most loan officers enjoy a positive work environment. This includes flexible working hours to have more time for personal and family activities and interests. Loan officers can often set their own hours; many can work from home or anywhere. In addition, loan officers can work in any state as long as they are licensed. Other perks as a loan officer may include health insurance, retirement plans, and bonus pay. Many companies also pay commissions to their loan officers.

3. good salary

Another good reason to become a loan officer is that this job is usually very well paid. The average annual salary for a loan officer in the United States is $179,896. This does not count the commission salary on top of this, which can average another $24,000. Commissions are usually calculated as a percentage of each loan the loan officer helps their client obtain. This means that if loan officers work extra, they may see a good amount of extra pay.

4. Job security

Working as a loan officer usually means having good job security. Because people often borrow money to finance large purchases or other essential living expenses, loan officers are almost always needed. In addition, according to the Bureau of Labor Statistics, the job outlook for loan officers is stable through 2030. So if you are looking for the career that provides job security, becoming a loan officer may be a good option.

5. Career development

In addition to good pay and job security, many loan officers can take advantage of career growth and opportunities. Some loan officers gradually take on additional duties or responsibilities. Some may relocate and be assigned to a giant branch of the bank or financial institution where they work, which allows them to have a more extensive client base. This, of course, can translate to more work and higher pay. Many loan officers are also promoted and become managers. If you work in mortgages and want to advance in your career, consider getting your mortgage broker license.

6. Looks good on the resume

Being a loan officer is a versatile job that looks great on a resume. It can help you work in different fields and industries. For example, in addition to working in finance, you might consider real estate, sales, or customer service positions. Mortgage loan officers must be licensed, but obtaining additional certifications, such as becoming a licensed mortgage broker (different from being a mortgage loan officer), can also increase your job options.

7. Good network capacity

Being a loan officer allows you to work with many people and build a good network of contacts. Most loan officers have ongoing relationships with their clients and friends. There are also many different clubs and professional organizations that you can join to meet other people, learn more about the industry or keep up with the latest information in your industry.

8. Easy to qualify

Most loan officers have a bachelor’s degree, and some major lending companies and banks may hire college graduates. However, having a college degree or a lot of work experience is not necessary, and many loan officers successfully find jobs without these things. Some companies don’t even require the loan officers who work for them to have a high school diploma.

The primary qualifications that can help you prepare for this career are having a good credit score, passing a background check, and getting a license. Licensing often takes only 20 hours of courses and then an exam with eight hours of continuing education per year. Once you have all these things, you can start looking for a job as a loan officer.

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