Loan Officer

What is this job like?		Back to Top

Loan officers help people apply for loans. This lets people do things like buy a house or a car, or pay for college. Loan officers help businesses by loaning them money to get started or to buy equipment.

There are three kinds of loan officers.

• Commercial loan officers work with businesses.
• Mortgage loan officers work with people who want to buy houses or other real estate or get new real estate loans for property they already own.
• Consumer loan officers work with people who want a loan for things like a car.

Loan officers usually have to travel a lot. Commercial and mortgage loan officers often have to work away from their offices. Commercial loan officers sometimes travel to other cities, especially for more complicated loans. Mortgage loan officers often work out of their home or car. They visit offices or homes of customers while filling out applications. Consumer loan officers and loan counselors are likely to spend most of their time in an office.

Most loan officers work a normal 40-hour week. Sometimes, they have to work longer hours if they have many customers. Loan officers are very busy when interest rates are low. This is because more people want to borrow. Mortgage loan officers often work long hours. This is because they can take on as many customers as they choose.

How do you get ready?		Back to Top

Loan officers usually have a college degree in finance, economics, or a similar field. It helps to know about computers and how they are used in banking.

If you want to be a loan officer, you need to be able to work well with others. You also need confidence and the ability to sell to people.

Math and computer classes are good ways for students to get ready for this job.

How much does this job pay?		Back to Top

The middle half of all loan officers earned between $37,590 and $73,630 in 2006. The lowest-paid 10 percent earned less than $29,590. The highest-paid 10 percent earned more than $107,040.

Most loan officers are paid commission. This means that the amount they earn depends on the number of loans they bring in. This encourages loan officers to make more loans. Some loan officers are paid only salaries. Others are paid a salary plus commission.

How many jobs are there?		Back to Top

There were about 373,000 loan officers in 2006. Loan officers work all over the country, but most work in or near big cities. Most loan officers work for banks and mortgage companies.

What about the future?		Back to Top

Employment of loan officers is expected to grow about as fast as the average for all jobs through 2016. More people are applying for loans over the Internet rather than going to a loan officer. Those who have a college degree will have the best chance of getting a job.

Are there other jobs like this?		Back to Top

• Insurance sales agents
• Financial analysts and personal financial advisors
• Real estate agents
• Securities and financial services sales representatives

Where can you find more information?		Back to Top

More BLS information about loan officers can be found in the Occupational Outlook Handbook. The Handbook also shows where to find out even more about this job.

Last Modified Date: April 29, 2008