Loan Officer Job Description
A loan officer helps borrowers get approved for large loans like mortgages. Learn more about what exactly a loan officer does in our detailed article.
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A Loan Officer evaluates loan applications for businesses and individuals. Banks and other financial institutions rely on Loan Officers to screen applicants, helping clients get a loan that fits their needs and their financial possibilities while explaining to applicants the terms of each loan.
Loan Officers work for financial institutions, usually banks, to sell financial services and loans to customers based on their needs and qualifications. They commonly work with homebuyers, but they can take on clients with different goals. This role requires several years of relevant work experience, particularly in customer service and the finance industry, such as a Teller position at a bank or accounting work. Loan Officers typically advance to Loan Authorizers, Senior Mortgage Officers and Mortgage Underwriters.
Education Requirements
- Bachelor's degree in finance, economics, or a related field of work
- Mortgage Loan Originator (MLO) license
- Certification by the Nationwide Multistate Licensing System (NMLS) National and State testing
- Loan officer courses and NMLS approved education for pre-licensing are required for acquiring a license
Loan Officer Essential Skills
- Customer service skills
- Thoroughness
- Excellent at communicating with clients
- Analytical skills
- Effective decision making
Loan Officer Roles & Responsibilities
- The first point of contact with prospective loan clients
- Promote the institution’s services and assisting clients in determining the most suitable loan to meet their financial objectives and needs
- Oversee the staff responsible for mortgage application paperwork
- Evaluate and authorize the approval of business, real estate, or credit loans
Day-to-Day Duties
- Review financial data in order to determine risk factors
- Meet and follows up with applicants and clients in order to keep all information up to date by completing credit and loan documentation and contacting them to obtain additional information regarding loan applications
- Approve loans by issuing checks or forwarding applications to loan committee
- Submit reviewed applications to management in order to approve or reject the loan
- Schedule and track closing dates, contingency dates, and loan lock expirations
- Complete loan contracts by explaining risks to applicants, reviewing filled applications, obtaining signatures and notarizations, and collecting fees