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Loan Officer Job Description

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A loan officer usually works in mortgage companies, commercial banks, credit unions, and other financial facilities.

The job of a loan officer is usually full-time, however, the hours may be long and tiring.

They may also have to travel quite a bit to visit clients.

The term loan officer doesn’t cover the entire scope of work.

There are different types of loan officers, including, a commercial loan officer, a mortgage loan officer, etc.

The duties and requirements can vary from one workplace to another.

However, some general responsibilities remain the same.

What Does a Loan Officer Do

Loan officers are generally responsible for evaluation, authorization, and approval of loan applications.

Typically, these professionals need a bachelor’s degree.

They also receive a moderate amount of training on the job.

Some officers, such as a mortgage loan officer, also need a license or certification.

Loan Officer job


  • Analyzing the financial status, property evaluations, and credits of applicants and meeting with them.
  • Collecting and organizing copies of credit histories, corporate financial statements, and other financial data of clients.
  • Informing clients about the loan process, answering their questions, and resolving complaints.
  • Explain the types of loans, credit options, and terms of the offered services.
  • Reviewing loan agreements and determining if a client can obtain a loan.
  • Approving or denying loans under particular limits and conditions and referring higher loans to responsible clients.
  • Setting credit lines, standards, policies, and procedures working with upper-management.
  • Submitting applications to credit analysts and ensuring that they get verified and recommended.
  • Designing and computing payment schedules and reviewing and updating credit and loan files.
  • Helping resolve mortgage application problems.
  • Helping clients set realistic financial goals and figure out efficient ways to reach them.
  • Negotiating payment arrangements with delinquent loan customers.
  • Analyzing loan markets and locating possibilities for various loans.
  • Developing networks of reference and sending reports to clients.
  • Petitioning courts to transfer deeds and titles of collateral to the bank.
  • Forwarding irreconcilable accounts for collector action and arranging for the maintenance and liquidation of properties owned by delinquent accounts.

Essential Skills


Loan officers work with people directly and frequently, so they need excellent communication and interpersonal skills.

They should be able to present an inclination for customer satisfaction.

Loan officers should be able to guide clients through the process and answer their questions.

They should also be able to analyze the information of an applicant and decide whether they can get a loan or not.


The profitability of a loan needs every little piece of information in the application to be correct and assessed properly.

So, loan officers need superior attention to details.

Computer skills:

Loan officers should be proficient with computers.

To succeed in the position, they may need additional experience with and knowledge of the banking applications.

Sales skills:

Loan officers should perfectly understand direct and indirect lending practices.

They have to find new clients, so they need sales and persuasion skills.

Officers promote their organizations, so they need to perform as salespeople and get in touch with firms or individuals to find out if they are in need of a loan.

How to Become a Loan Officer

Besides meeting educational requirements, loan officers should also have a set of personal traits to be suitable for the position.

Without these qualities, it is impossible to get a job, and every HR professional can easily recognize them.

Some employers may require even more of these necessary traits while others don’t care about most of them.

It depends on the employer as well as the type of loan officer job.

Training and Qualifications

Of course, depending on the industry the duties and required experience can be different.

The employer can also reduce or attribute more responsibilities to a certain employee.

For instance, the positions of loan officers in a bank and consumer loan officers will vary.

Senior loan officers may have a higher salary and fewer tasks than someone who recently joined the industry.

Loan officers need a bachelor’s degree in finance or a related field.

Besides, new loan officers may have to undergo some training on the job, so they can learn the insights of the company and their future job.

The BLS informs that mortgage loan officers should also be licensed or certified before they are hired.


According to the BLS, the median salary for loan officers was $63,430 as of 2015.

They estimate that the employment rate will remain at the same level as for the other occupations in the US, by 2024.

However, this salary may seem not quite fair of compensation given the stress, long working hours, and extensive educational requirements of the job.

Loan officers are often overworked while having probably one of the most poorly paid and stressful jobs.

The job of a loan officer varies drastically from employer to employer and from industry to industry.

Working Hours

Loan officers’ typical work week may last up to 50 hours.

The usual schedule is from 10 am to 8 pm.

These hours can also differ depending on the industry and employer.

Loan officers don’t usually work on weekends or at night.

However, sometimes they may have to work overtime while traveling or working on holidays.

Career Outlook

The Bureau of Labor Statistics reports the employment rate of loan officers to increase by 8% through 2024.

This rate is pretty much at the same level as of all the other occupations in the US.

The reasons for the growth include the fluctuating economy, population growth, and low-interest rates.

Another factor influencing this growth is the increased number of small businesses and the growing success of some of those.

Loan officers can advance to a higher position of a Senior loan officer.

The promotion is possible with more experience and a longer time in the industry.

However, the advancement is also possible externally by being hired by other companies with higher commissions, or even higher pay.

Some officers obtain a broker’s license or even launch their own businesses and hire their loan officers.


The position of a loan officer isn’t as appealing as other occupations due to the salary and huge workload.

However, if you are interested in this career, whether, for a long or short time, you should start with furnishing a presentable resume and collecting more detailed information about the job.

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