Loan Officer Salary

Loan Officer Salary And Responsibilities

Thinking about starting a career as a loan officer? Why wouldn’t you? After all, the loan officer salary is one of the most attractive wages around.

Basically, a loan officer is the person people work with to get a loan for putting themselves through school, starting their own business, buying a house, purchasing a vehicle and so on. Most loan officers work for financial institutions like banks and handle three types of loans: commercial loans, consumer loans and mortgage loans. The loan officer salary depends on these specializations and the number of successful deals he can broker in a year.

Rumors have it that it’s a great paying gig for little work. Is that so?

Hunting Down Prospective Borrowers

Being a loan officer involves first, getting in touch with prospective borrowers. There will be potential borrowers out there who have money to invest but will need a little persuasion. A loan officer will contact corporations and inquire whether they might be interested in loans for business development or expansion.

He is like a salesperson in this respect and this is no easy job. A different kind of stress is involved going after deals which can translate to one huge payday. There will be a lot doors being closed and countless almost successes which are heartbreaking. For one deal that actually pushes through, most loan officers are paid commissions on top of a basic salary. The loan officer salary is more or less $62,000 annually but it’s the bonus or commission that is the most tempting. A well-performing loan officer can earn more than lawyers or doctors if he has the nose for hunting down a great potential borrower and has the skills to lure him in.

Assisting Prospective Borrowers

There will be willing borrowers too who may have some difficulty qualifying.  A loan officer is in the position to give sound advice to these borrowers and assist them in securing a home, car or business loans. He also does the credit checking to make sure these borrowers have the capacity to pay. Finally, a loan officer can recommend the right types of loan for those in need.

The loan officer salary may be alluring but the opportunity for growth isn’t as attractive. Many institutions do not even require a college diploma when hiring loan officers so little should be expected in terms of promotion.

Now that you have some idea on loan officer accountabilities and loan officer salary, do you still think this job is for you?