This day and age most of the general population will find themselves taking out a loan at some point. Whether it is to help buy a home, a car, or go towards college, there are many purchases that many people wouldn’t be able to make without a loan. A loan officer is the one who determines whether or not the individual or business that wants to borrow money will be able to pay it back. They also help their clients decide what type of loan is best for their situation and walk them through the process of taking out a loan. This includes explaining all necessary paperwork, the risks involved due to compound interest and best practices when paying off a loan. There are several different types: there is a consumer loan officer, a loan collections officer, a mortgage loan officer, and finally a commercial loan officer. There are plenty of loans out there to go around and this career will definitely offer you a respectable salary.

Salary

In 2009, the average loan officer salary was $54,700 according to the Bureau of Labor Statistics. The top 10% made over $107,000 annually. As you can see, this career can be quite lucrative. In 2008, there were roughly 327,800 loan officers employed in the United States. Officers work the standard 40 hours a week, if not more if they have a higher caseload. To become a loan officer you have to at least have a high school diploma and receive a considerable amount of on the job training and several training courses. Commercial officers are usually required to have a Bachelor’s Degree in a related field such as finance, economics or commerce. Employers put a high value on any previous lending, sales or banking experience an applicant has so it is a good idea to complete a few courses and gain some experience dealing with money before you apply for a job. The more courses and experience you have, and the higher the level and relevance of your degree, the better chance you have of landing a job.

Job Description

Mortgage loan officers will often meet with clients at their home or office to discuss loan applications and many of them work from home. Consumer loan officers on the other hand will spend almost all of their working hours at the bank or institution they work for. Loan officers can work for almost any financial institution including commercial banks, loan centers, savings institutions and credit unions. A typical day involves finding potential clients, acting as a salesperson trying to persuade individuals into taking out a loan, assisting clients in getting and managing loans, and determining clients’ creditworthiness. It is a challenging and sometimes stressful job, but it can also pay quite well. There are other downsides to the career such as getting clients who are not easy to deal with. When an individual’s loan application is denied, they can become distressed and angry.  There are also cases where clients who already have loans and are having trouble repaying them.making it hard to get any approval for future loans. Working as a loan officer can sometimes be heartbreaking, but it is usually quite rewarding to see the results of all the businesses and individuals you have helped.

The salary they recieve depends on a variety of factors. The most important and influential factor is their employer. Some companies only pay a commission, some pay a salary and no commission, and others have a pay structure that uses a combination of salaried pay and commission. A loan officer salary can vary depending on how many cases they manage and how well they decide between those who should be given loans and the people who should be rejected. Their salary also changes with the fluctuations of the economy and the changes in the prime interest rate. There is always room for advancement in the loan business, and the job market is expected to grow by 10% between 2008 and 2018, which is on par with the average growth rate of all other occupations.

If you enjoy working with money, working directly with clients, and changing people’s lives than being a loan officer might just be the job for you. The loan business has been on the rise since the housing crash in 2008 and there are a growing number of opportunities available for those who want to enter this field.