How to Be a Loan Officer
By Eric Hammer
Even now, after the real estate fall out that happened recently,
many people still want to learn how to be a loan officer. The
fact is that even though loan officers took a huge hit when the
real estate market crashed, they are still doing well even today
and those who have survived the shake out are now riding a cresting
wave of new jobs which are coming back to the loan industry.
Your job will involve working with people to help them apply
for a loan and to choose the perfect loan for their needs. The
thing to keep in mind however is that you will mostly work on
commission. Therefore, you do need to keep up your volume of
loans while at the same time making sure that you follow the
rules that are required for making loans.
You will need to be good at more than just meeting with people
and making a sale though. You'll also need to be good at evaluating
information and at math so that you can make quick calculations
to figure out the numbers for your clients and exactly how much
they may expect to pay for their loans.
How Much Can You Make?
While some of the resources below are quite exuberant and
claim that loan officers can "easily" make six figure
salaries, the reality is that loan officers usually make more
modest sums. A typical salary in 2008 according to the Bureau
of Labor Statistics was between $39,710 and $76,860 per year
with the top earners just edging over $100,000.
Ways to Make More | Related Opportunities
Remember that especially in light of the housing crash in
the United States, you really need to be careful about sticking
closely to the rules your bank sets and to keep from getting
customers overly pumped up about buying a home they may not be
able to afford.
You should also be a good listener - someone who can understand
what people's needs are and help them to make realistic decisions
about the size of loans they may be able to take out so that
they don't overdo it and end up in a home they cannot afford.
Qualifications / Requirements
You may be able to get away with only a high school diploma
if you want to be an ordinary loan officer. Most of the training
is done by the company that hires you. However, if you want to
become a commercial loan officer, you'll likely need to go for
a bachelor's degree in finance or economics in addition to doing
on the job training.
In addition to this, loan officers are required to apply for
a state license to practice their craft. The requirements vary
from state to state however so you'll need to contact your state
licensing board to find out for sure.
Start by talking to some loan officers at your local bank.
Most of them will be happy to give you an overview of what the
business is like and where they feel it's currently going. Then,
either consider going to school to earn your degree in finance
or apply for a job as a loan officer. Remember that in all cases
you will need to apply for licensure as well.
Check out these helpful resources to learn more about how
to be a loan officer:
About.com: Should You Become a Loan Officer
- A quiz to help you decide if this job is the one for you.
Mortgage Training Center: How to Become a Loan Officer
- A guide to how to be a loan officer from a company that specializes
in the subject.