Loan Officers work for a variety of financial institutions, but mainly for banks.

There is an on-going need for educated, experienced Loan Officers.

Individuals and businesses often need, or want, more cash than they already have. They seek this cash in the form of loans.  Individuals usually want loans  for things like cars, or new homes,  while businesses usually want loans for expansion or investment.   It is a Loan Officer who will deal with these loan requests.

Although some Loan officers spend most of their day working at a desk in clean comfortable offices, others, because of their specialization, may need to travel to client homes or investment locations.  Usually Loan Officers work a forty hour week, but overtime may be required, depending on interest rates and client demands.

Those who wish to become Loan Officers must be hard-working, self-confident, and have excellent communication and inter-personal skills.  They must be good salespeople, and have an interest in helping others.  They must also be polite, persuasive, detail-oriented, and have good time-management skills.  Loan Officers need to have good computer skills.

The duties of a Loan Officer may vary depending on the size and type of institution in which they are employed.  In small financial institutions, Loan Officers may handle all types of loans.  In larger institutions, Loan Officers tend to specialize, in one of three areas, consumer, mortgage, or commercial.  Consumer Loan Officers deal with personal loans, which cover things like education, boats, and automobiles.  Loan Officers who specialize in mortgage loans, deal only with loans for real estate.  Commercial Loan Officers deal with loans for business expansion, the purchase of equipment, and investments.   The loan officer will meet with the client or clients, ascertain their needs, and advise on the best type of loan for the situation.  They will explain interest rates, and the company’s policies regarding loans.  They will explain and help with any forms that the client needs to complete.  They will review these forms, and check that all information given by the clients is accurate.  The loan officer must also judge, as well as verify, the client’s ability to repay the loan, in a timely manner.  Together with their supervisors and managers, the Loan Officer will decide whether the loan will be granted.  This decision will take into consideration the client themselves, their employment, their material possessions, and their past loan history.

Loan Officers, who deal with automobile loans may work cooperatively with automobile companies and Loan Officers. who deal with real estate, may work cooperatively with real estate companies.  All Loan Officers must be personable, and be able to sell themselves and the institutions in which they are employed.

Education

While in high school, take courses in English, computers, mathematics, and business practices.  Try to get a part-time job, that will give you experience interacting with a variety of people.  Consult your guidance councilor about the possibility of ‘shadowing’ a professional Loan Officer for a day or, if possible, a week.  ‘Shadowing’ a professional will give you an inside view of the loan business, and help you make the right choice for your future career.

In the past many Loan Officers had only a high school diploma, and were then hired and trained on-the-job.  Today employers prefer to hire those with a college degree, preferably a bachelor’s or even a master’s degree.  Higher education is especially important if you wish to work as a mortgage or commercial Loan Officer.   Degrees in finance and economics are the best choices for anyone who wants to become a Loan Officer.

Some Loan Officers may need to be licensed.  Licensing requirements vary from state to state and may also depend on your specialization.  Licensing usually requires a specific degree of education and the writing of an exam.  Make sure you understand exactly what is required in the area and institution in which you intend to seek employment.

Loan Officers may also become certified, but certification is never a requirement for employment.  Certification is, however, worth considering, as it does attest to you education, skill, and experience.  Those who are certified are more likely to be hired, and also promoted.  If you are interested in certification, take a look at the site below.

http://www.campusmba.org/CertificatesandDesignations/CertifiedMortgageBanker

Loan Officers with education and experience can advance to positions as supervisors and managers.