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How to become a loan officer?
Tell us everything we need to know to become a loan officer.
Note: Given the growing interest in the finance field, we're inviting our experienced professionals to share their knowledge.
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3 answers
Doc Frick
Career Coach and Mentor
1590
Answers
California, CA
Updated
Doc’s Answer
A degree is not required to become a loan officer but is helpful. If you are looking into working for a smaller financial institution or mortgage lender, you often need to be at least 18 years old and have a high school diploma. You should check the educational requirements of the job posting prior to applying to see if you qualify. Smaller institutions will be willing to provide on-the-job training in lieu of a degree for the right candidate. Larger financial institutions typically require at least a bachelor's degree in a related field to be hired.
BACHELOR'S DEGREE
If you do decide to obtain a degree to start your career as a loan officer, consider majoring in areas such as finance or degrees related to finance like accounting, business, or economics. Having a four-year degree in a finance-related field will heighten your chances of getting an interview and will also help you to perform your daily tasks. As you will be working with financial information and answering customer's questions regarding loans, having financial knowledge and the ability to explain financial terms to customers is very beneficial.
SKILLS YOU'LL NEED AS A LOAN OFFICER
Here are the skills you will need to possess if you hoping to pursue a successful career as a loan officer:
• CUSTOMER SERVICE: To succeed in the career path of a loan officer it is important to be able to provide excellent customer service skills. You will be working with customers daily and will be the point of contact whenever there is a question regarding a loan.
• SALES ABILITY: Loan officers will also need to think of themselves as serving as a salesperson and will need to pitch the loan to the customer if they are approved. You will want them to take the loan through your financial institution instead of the competition.
• DETAIL-ORIENTED: As a loan officer, you will need to be able to sort through documents and find relevant information to determine if someone is eligible for a loan. You will need to make sure you are not missing any important information to ensure the accuracy of your review.
BACHELOR'S DEGREE
If you do decide to obtain a degree to start your career as a loan officer, consider majoring in areas such as finance or degrees related to finance like accounting, business, or economics. Having a four-year degree in a finance-related field will heighten your chances of getting an interview and will also help you to perform your daily tasks. As you will be working with financial information and answering customer's questions regarding loans, having financial knowledge and the ability to explain financial terms to customers is very beneficial.
SKILLS YOU'LL NEED AS A LOAN OFFICER
Here are the skills you will need to possess if you hoping to pursue a successful career as a loan officer:
• CUSTOMER SERVICE: To succeed in the career path of a loan officer it is important to be able to provide excellent customer service skills. You will be working with customers daily and will be the point of contact whenever there is a question regarding a loan.
• SALES ABILITY: Loan officers will also need to think of themselves as serving as a salesperson and will need to pitch the loan to the customer if they are approved. You will want them to take the loan through your financial institution instead of the competition.
• DETAIL-ORIENTED: As a loan officer, you will need to be able to sort through documents and find relevant information to determine if someone is eligible for a loan. You will need to make sure you are not missing any important information to ensure the accuracy of your review.
Silvia Hernandez Martinez
Recruiter
6
Answers
Springfield, Virginia
Updated
Silvia’s Answer
Here's a friendly guide to help you become a loan officer:
Education: It's not always necessary to have a specific degree, but a background in finance, economics, or business administration can be a real asset. Most loan officers have at least a bachelor's degree.
Get Some Experience: Having some experience in banking, lending, sales, or customer service can give you a leg up. Starting with an entry-level job in a bank or financial institution can give you a taste of the industry.
Training Courses: Some employers will train you on the job, while others might want you to take formal training courses. These courses can teach you about mortgage lending laws, regulations, underwriting processes, and how to structure a loan.
Get Licensed: In the US, loan officers usually need a license. The specific requirements can vary from state to state, but generally, you'll need to pass a written exam and meet certain educational and background requirements. Check with your state's regulatory agency to find out exactly what you need to do.
Boost Your Communication Skills: As a loan officer, you'll need to talk to clients about their financial needs, explain their loan options, and guide them through the application process. Good people skills and communication skills are a must.
Stay Informed: The lending industry can change over time due to regulations and market trends. Keep up with changes in lending laws, interest rates, and industry practices so you can give your clients the best service.
Network: Make connections with real estate agents, builders, financial planners, and other industry professionals. They can help you find leads and referrals.
Consider Getting Certified: While it's not always necessary, getting certifications like the Certified Mortgage Banker (CMB) or Certified Mortgage Planning Specialist (CMPS) can make you look more credible and knowledgeable.
Join Associations: Think about joining industry associations like the Mortgage Bankers Association (MBA) or the National Association of Mortgage Brokers (NAMB). They can help you stay in touch with your peers and give you access to professional development resources.
Start Applying: Once you've got the necessary qualifications and experience, start applying for loan officer jobs at banks, credit unions, mortgage companies, or other financial institutions.
Remember, becoming a successful loan officer takes a mix of knowledge, skills, and a commitment to giving your clients excellent service.
Education: It's not always necessary to have a specific degree, but a background in finance, economics, or business administration can be a real asset. Most loan officers have at least a bachelor's degree.
Get Some Experience: Having some experience in banking, lending, sales, or customer service can give you a leg up. Starting with an entry-level job in a bank or financial institution can give you a taste of the industry.
Training Courses: Some employers will train you on the job, while others might want you to take formal training courses. These courses can teach you about mortgage lending laws, regulations, underwriting processes, and how to structure a loan.
Get Licensed: In the US, loan officers usually need a license. The specific requirements can vary from state to state, but generally, you'll need to pass a written exam and meet certain educational and background requirements. Check with your state's regulatory agency to find out exactly what you need to do.
Boost Your Communication Skills: As a loan officer, you'll need to talk to clients about their financial needs, explain their loan options, and guide them through the application process. Good people skills and communication skills are a must.
Stay Informed: The lending industry can change over time due to regulations and market trends. Keep up with changes in lending laws, interest rates, and industry practices so you can give your clients the best service.
Network: Make connections with real estate agents, builders, financial planners, and other industry professionals. They can help you find leads and referrals.
Consider Getting Certified: While it's not always necessary, getting certifications like the Certified Mortgage Banker (CMB) or Certified Mortgage Planning Specialist (CMPS) can make you look more credible and knowledgeable.
Join Associations: Think about joining industry associations like the Mortgage Bankers Association (MBA) or the National Association of Mortgage Brokers (NAMB). They can help you stay in touch with your peers and give you access to professional development resources.
Start Applying: Once you've got the necessary qualifications and experience, start applying for loan officer jobs at banks, credit unions, mortgage companies, or other financial institutions.
Remember, becoming a successful loan officer takes a mix of knowledge, skills, and a commitment to giving your clients excellent service.
Maura Moin
Business Development
4
Answers
Detroit, Michigan
Updated
Maura’s Answer
While the advice given above is helpful, to simplify things, there are plenty of companies out there, like Rocket Mortgage, where they fully train you and help you through the licensing process to become a loan officer. All you have to do is apply and interview, and then they will walk you through the rest of the process.