Not everyone has the means or the time to become an entrepreneur, not to mention that it is not everyone’s dream job. Some people prefer office jobs that have fixed schedules, as they provide more security and stability. Based on recent statistics, it is projected that mortgage loan officers will be in high demand in the next six years.
Not only that but working as a loan officer also entails a sizable yearly income of around $64,000! Of course, this can make anyone interested in attaining this post. However, if you want to kickstart your career as a loan officer, you must know what to expect. Read on to get an idea about the most important responsibilities of loan officers.
What Do You Need to Become a Loan Officer?
Before we delve into the intricacies of the job, you have to be aware of the requirements you have to meet if you want to fill this post. First off, having a bachelor’s degree in a related field like finance can help you stand out and facilitate the process of landing the job. Yet, it is not a strict requirement per se.
Your high school education should be sufficient in most cases. Now, you need to look into the pre-licensing requirements of the post. Just keep in mind that the requirements of becoming a loan officer depend on the number of training hours you need to get your license. Training requirements usually differ depending on your state. For example, in California, you need to pass 20 hours of training, criminal background checks, and a test to become a licensed loan officer.
Responsibilities
Meeting with Borrowers
The first and most important responsibility you have to shoulder in your new job is interviewing loan applicants. Without a doubt, this step, in particular, is crucial to ensure if the applicant in question is trustworthy enough. Such interviews usually include questions about the applicant’s credit history. Also, you are required to take a look at the borrower’s credit report that specifies their credit score and other vital information. While this might seem antagonistic, it is actually done for the benefit of both the borrower and the financial institution.
You should still show sympathy towards the applicant, as ensuring that they feel at ease can go a long way towards making them trust your institution and pay their installments on time. So, you need to guide the borrower and advise them on the best course of action depending on their financial situation and credit score.
Helping Your Institution Make Good Decisions
By interviewing your clients, you can then advise your management about the best course of action. In fact, you play an important role in helping your financial institution make sound decisions.
To do so, you will need to confirm the applicant’s credit score and other details by contacting other lenders. For this step to be effective, you must have a large network you can depend on to verify your applicants’ information. After confirming the client’s details, you are required to draft a report, explaining the reasons why you think accepting or rejecting the application is the right choice. Once the loan is finalized, you need to keep the databases updated to help the institution operate smoothly.
Following Up
Your job as a loan officer is still not over when your institution makes its decisions regarding the applications and reports you have sent to the management. If your manager approves the loan, you are the one responsible for notifying the borrower and explaining their repayment schedule.
This entails taking care of a lot of paperwork to keep track of your borrowers’ different schedules and guarantee that they pay their installments on time. To achieve this, you should keep in touch with the clients and send them the necessary reminders or warnings to make sure that they do not default. In case of any changes in the market, you may also need to contact the clients to help them understand how such changes can impact their loans and the interest rates they have to cover, especially if they have opted for non-fixed loans. Thus, good communication skills are the key to becoming a good loan officer.
While working as a loan officer might seem like an exhausting job, it is financially stable and offers you a great chance of improving your skills and getting promoted. To become a loan officer and obtain your license, you need to complete the training set forth by your state. After you do so, you will be required to handle a wide array of responsibilities, such as interviewing applicants, filing reports, and ensuring that the borrowers do not default on paying their installments. So, if you have an extensive financial background or are simply interested in helping people out of tough situations, this post is definitely for you.
