According to the Bureau of Labor Statistics, in 2010 there were 289,400 loan officer jobs, and between 2010 and 2020 the job outlook was expected to grow as fast as the average. For individuals with an interest in finance, working on how to become loan officers is one possible career move. If you want to work for a financial institution as a loan officer, then here are three important things that you need to know.
- Loan officer requirements.
- Loan officer jobs.
- Loan officer duties.
Becoming a loan officer starts with understanding what you must do before officially becoming one, in terms of education and licensing. People who want to learn how to become loan officers first need to have secured a high school degree, and must then complete 20 hours of coursework to achieve licensure or certification. It is helpful to have prior experience in banking. Depending on what kind of loan officer job you are seeking, you may want to become a Certified Mortgage Banker, or you may want a Loan Review Certificate provided by the American Banker’s Association. Generally, a license from the Nationwide Mortgage Licensing System is required.
As a loan officer, you would help people through the loan application process as well as determine the likelihood that individuals will pay their loans back. People who want to know how to become loan officers would do well to look at jobs and the duties they entail first, to help them decide if that is what they really want out of a career. You would work for a financial institution, such as a lending company, bank, or credit union, to provide auto loans, consumer loans, personal loans, and mortgage loans to individuals. Some loan officers also help with loan refinancing, or commercial loans for businesses.
A loan officer is expected to be proactive in getting together paperwork, offering competitive rates, and educating the client on what they are getting into. You may have to work with underwriting and financial software, and you should be very knowledgeable about cash flow analysis, financial statements, and business accounting. Other duties include helping applicants complete their applications, verifying information, analyzing the application, and granting loans to individuals.
Remember that there are licensing and certification requirements, depending on what type of loan officer job you apply for. If you are good at finance, able to explain complex subjects, and interested in helping individuals receive loans they may need to expand a business, or buy a house, then pursing a career as a loan officer may be perfect for you.