The term loan is quite a common term not only in our lives but on the internet as well. Whether you are someone looking for a house or a business owner looking to expand your activities by starting a new factory, you will need loan to make that possible. However, it is virtually not possible for you to approach the lending institution just like that and get approved for the loan. These institutions have representatives who help you through the application and approval process. These individuals are called the loan officers and they represent financial institutions.
What Does a Loan Officer Do?
There are two types of loan officers: a loan officer working for a particular financial institution and an independent loan officer with connections with many financial institutions. The loan officer will get in touch with the borrowers, inform them about available loans, advise them on finding the best loans while constantly representing the policies of his/her institution. After obtaining enough information from the borrower, the loan officer will represent the borrower to its institution and obtain approval of the application. The officer would work to convince borrower to get the loan and institution to approve it.
What Should Be Loan Officer’s Qualification?
There is no particular degree or program required for loan officers. A bachelor’s degree is enough for an individual to become a loan officer. However, it is best that the individual obtains this degree in finance, marketing, economics and other similar subjects. An MLO license is required for loan officers that are working for residential lending. The most important thing that serves as hiring points for the individual during interviews is experience. Your experience with banks, financial institutions, different types of loans such as car loans, logbook loans, mortgage loans and in marketing is the most impressive thing that increases your chances of getting hired.
What Skills Are Required?
As mentioned above, loan officers can increase their chances of getting hired with marketing and sales experience. In all these jobs the most important thing is effective communication. The style of a loan officer should be pleasing and persuasive. Furthermore, the loan officer should be outgoing and socializing. A loan officer should also be a great listener. Decision making power should be present in the individual. If you can do quick calculations in your head, that would be a great skill as well. Lastly, you need to be problem solving in order to convince clients to get the loan.
How Much Do Loan Officers Get Paid?
In most cases, loan officers are employed by financial institutions and so they receive their salaries in the form of commissions. This means they don’t have a rigid salary point. However, according to the recent calculations, loan officers earn around $60,000 to $65,000 on annual basis. This is the median salary range because some experienced loan officers are making more than $100,000 every year. Some are earning quite low but it all depends on the amount of hard work you put in your work and the commission you get for every client.