About Loan Officers
Loan officers help people apply for loans. The job of a loan officer is to serve as an intermediary between borrowers and banks or other financial lending institutions. Borrowers typically see loan officers when they need funding to purchase a house, car, pay for college, or start a business. Loan officers will help the borrower determine the best type of loan to apply for, based on the borrower's creditworthiness and what the loan is needed for. Upon reviewing the financial and other required information of the borrower, the loan officer consults with the lending institution and decides whether or not to grant the loan, based on the credit history and likelihood of repayment by the borrower.
Other People Are Reading
-
Function
-
Loan officers represent lenders to borrowers and borrowers to lenders. They work between the two to try to find the most suitable loan for the borrower while guiding him through the loan process. Loan officers are required to have good interpersonal and communication skills since part of their job entails the ability to sell and close loans.
Types
-
The three types of loan officers are commercial loan officers, consumer loan officers, and mortgage loan officers. Commercial loan officers work with businesses. Consumer loan officers work with people who are seeking loans for automobiles or personal loans. Mortgage loan officers deal with real estate and work with individuals wanting to mortgage a house or some other real estate. While consumer loan officers spend most of their time working in an office, commercial loan officers and mortgage loan officers frequently work away from their offices. Mortgage loan officers visit the homes or offices of customers, while commercial loan officers are sometimes required to travel to other cities and states to do business.
-
Considerations
-
Those interested in a career as a loan officer should look into the educational and licensing requirements. Most loan officers have a college degree in finance or a similarly related field. It is also helpful to be knowledgeable of using computers in banking. Although a college degree isn't always necessary, those who have a degree will have an easier time finding work as a loan officer and will have a greater chance at advancement. Some states require licensing for loan officers who work in mortgage or brokerage firms.
Benefits
-
The potential employment outlook for loan officers is a positive one. Loan officers with a college degree and related experience in the field can look forward to employment growth. The Occupational Outlook Handbook projects employment to increase 11 percent between 2006 and 2016. According to the Occupational Outlook Handbook, "the median annual earnings of wage and salary loan officers were $51,760 in 2006." The lowest ten percent earned just under $30,000, while the top ten percent earned over $107,000.
Warning
-
In some cases, the person wanting to take out a loan needs someone with better credit to co-sign on the loan in order to be approved. This is to ensure to the lending institution that if the borrower defaults on repayment of the loan, the co-signer will then be responsible for the payments. Be very careful before co-signing on any loans. If the borrower defaults on the loan, your credit can be negatively affected. If you are unable to pay, assets such as your home or car may be seized and the lender may also garnish your wages in order to ensure repayment.
-
