What are the Duties of a Loan Officer?

What are the Duties of a Loan Officer

When it comes to having to borrow money from a financial institute, it’s usually a nerve-wracking experience. It’s a little known fact, but a loan officer can help make that experience much more pleasant than you thought possible. They’ll also support you in getting a loan for some of the most important things in your life. When you want to purchase a home, buy a new car, or need financing to continue your higher education, a loan officer is one of the first people you’ll meet up with to aid you in achieving your goal.

The average American will work until they’re 60 years old. Those are several decades of work, so you would want to work in a fulfilling job or career. You’d also want a job that is stable and one which has lots of opportunities to grow. Becoming a loan officer is one such career. If you’re considering a career in this field, you’ll be very happy to know that the unemployment rate is only 3% with a median salary of $63,040 per year.  

What are the Duties of a Loan Officer

Where Does The Loan Officer Fit In?

There are plenty of settings wherein a loan officer can work, such as banks, mortgage companies and credit unions, among others. Depending on where you work, the job could involve traveling, or it could be more of a desk job. For instance, in mortgage loans, you might need to move around as you’ll be meeting clients and scheduling meetings in different places, while a commercial loan officer working in a bank will have the clients meeting up with them at their workplace.

Generally, a loan officer needs to have at least a university Bachelor’s degree. Even if it’s not a requirement, your chances of landing a good job will greatly improve with a degree. It’s beneficial to know that the work of a loan officer involves several skills that go beyond formal learning. It needs people skills, as well as analytical, organizational and logistical skills. 

You might be surprised to know that actually the two most important skills are relationship building and providing exceptional customer service. You’ll appreciate reading this helpful link, to give you more detailed information as to why those two skills stand out from others to make you a successful loan officer. A loan officer acts as a contact person between loan applicants and the financial institute the officer is working with. They do this through a set of duties. 

What are the Duties of a Loan Officer

The Duties 

  • Approve loans 

A good part of the job will be investigating the risk of providing a loan for an applicant. As a loan officer you have to analyze complex data, including financial records and statistical information regarding the applicant’s capability to make a full payback on the loan. Before there is an approval or rejection of the loan, you must ensure the client meets the requirements to obtain a loan. To do this, you need to collect and verify the information on an applicant’s financial records. 

  • Ensure the applicant will pay back the loan

Before a loan can be approved, the officer must be able to ensure the loan can be paid back. This includes making a thorough assessment of the client’s financial history, which means checking the worthiness of an applicant’s credit score and other financial assets. You will most likely also be communicating with other financial institutions to request details on your clients and their financial health. 

  • Follow all regulations

The job of an officer involves a lot of paperwork. This work will cover various rules, laws and regulations. You must make sure that all the paperwork follows standard procedures. It’s also expected to be able to communicate the procedure with clients in a manner of which they will understand.  

  • Meet with clients

Your job is about selling loans and helping clients get a loan. This means that clients should know about the kinds of loans available. You will help them determine the most appropriate loan that will suit their needs. That would require a good background and understanding of their organization’s loans and of the qualifications required of applicants to ask for a loan. Based on your knowledge, you will be able to make the right recommendations to clients.

There are job openings right now in this career. On a typical day, you can expect to meet up with different clients, and approve loans within specified limits. If a loan is out of those limits, you will refer them to management to get approval. A typical week might include promoting bank services that may meet customers’ needs or analyzing market conditions and trends. It’s a lucrative and interesting career with a lot of responsibilities, but it also provides a lot of job satisfaction.