How Much Do Loan Officers Make?

Loan officers earn a hefty sum annually, but is the job quite right for you? Learn more.

Want to get a loan? Sure. But it might not be that easy. You need to impress the loan officer!

A loan officer is a person who is going to approve your application and decide whether you should be getting the loan or not. And no, you don’t need to invite them on dinners and treat them with nice gifts; you just have to strengthen your creditworthiness.

Let’s look into a bit about loan officers.

What do Loan Officers do?

A loan officer assists consumers and business people in choosing a loan product and applying for it. This person is the main contact with the financial institution through the loan closing. Most loans require a pile of paperwork, and mortgages have the most amount of work. This is because mortgage loans are heavier loans as compared to conventional or personal loans. And this means a mortgage loan officer is in for a lot more hassle.

Mortgage loan officers assemble customers’ monetary data like debts and tax, to audit if they are qualified for giving mortgage loans. They complete home loan credit applications dependent on public and nearby monetary norms and review their progress.

A loan officer is responsible of doing the following:

  • They accomplish mortgage loan human resource objectives by situating, preparing, relegating, booking, educating, guiding, and training employees; communicating job expectations; planning, monitoring, appraising job contributions; recommending compensation actions; adhering to policies and procedures.
  • They satisfy contract credit operational guidelines by contributing mortgage advance data to key plans and surveys; executing creation, efficiency, quality, and client support principles; settling issues; identifying mortgage loan system improvements.
  • They satisfy mortgage loan financial standards by giving yearly spending data; observing uses; recognizing changes; executing remedial activities.
  • They pull in new home loan credit applications by creating connections inside the network, explicitly with the real estate community; settling on deals decisions to imminent clients.
  • They endorse contract advances by analyzing application and supporting documentation; assessing credit-value; calculating repayment risk.
  • They complete mortgage loans by monitoring collection, check, and planning of home loan advance documentation; booking and finishing contract advance shutting.
  • They are also responsible for protecting the bank’s image by keeping mortgage loan information confidential.
  • They constantly upgrade their work knowledge by participating in educational opportunities; pursuing proficient distributions; keeping up close to home organizations; taking an interest in expert associations.
  • They are also responsible for accomplishing bank missions by completing related results as needed.

How to become a Loan Officer?

Becoming a loan officer isn’t a very complicated process; and anyone can be one. It starts with getting the right education and qualified training, obtaining licensing and then work experience.

To start with becoming a loan officer, a person must obtain a bachelor’s degree in a related field. Although not completely necessary, it is preferred for a person to get a degree in business, finance, accounting, marketing, economics or a related field.

After this bachelor’s degree, it is preferred for a person to get a professional diploma or postgraduate degree in their field of specialization. And while they’re doing that, it is important to look for internship opportunities to get work experience and have some practical experience on your resume.

The next step is to get a license, especially if you’re looking towards becoming a mortgage loan officer. According to KnowledgeCoop, it is important to remember that each state has specific guidelines that apply to mortgage loan officer licensure, and state agencies are the ones to actually issue licenses.

But there are a number of requirements listed in federal legislation that are applicable across the board. It is worthwhile to become familiar with the federal Secure and Fair Enforcement Act for Mortgage Licensing of 2008 (i.e. SAFE Act), a major bill passed by Congress in the wake of the mortgage lending crisis.

Per the SAFE ACT and the NMLS, mortgage loan officers are required to:

  • Obtain licensing from their respective states
  • Register with the NMLS
  • Provide authorization to obtain a credit report
  • Provide a variety of identifying information
  • Provide fingerprints for a criminal background check
  • Provide a financial services employment history for the past 10 years
  • Disclose any financial regulatory body charges against them
  • Attest to the completeness and accuracy of the information provided

Mortgage loan officers need a mortgage loan originator license, which requires passing an exam, at least 20 hours of coursework and background and credit checks. Additional training takes place on the job.

Loan Officer Requirements

  • Experience as a loan officer or in a similar role
  • Previous experience in sales or customer support is an asset
  • Working knowledge of mortgage loan computer software (e.g. Calyx Point)
  • Ability to handle confidential information
  • Great mathematical and analytical skills
  • Attention to detail
  • Reliability and honesty
  • A valid license is a must
  • Degree in Finance or Business is a plus

Disadvantages of being a Loan Officer

With every job, being a loan officer comes with its own share of pros and cons, and the biggest disadvantage of being a loan officer is working for years and years before you get yourself out there in the market. Some people spend half their careers just trying to establish themselves and making a name- which is a time taking process and most people opt out during that only.

However, this shouldn’t be a hindrance to people who are actually willing to walk miles for this career. There are a list of pros and cons to really help you decide whether being a loan officer is really your cup of tea or not.

Pros Cons
Flexible work hours. You’ll need to work hard to get established.
Independence allows you to be the boss. Working with banks can lead to frustration.
Continually upgrading your skills will lead to you becoming an industry expert. There is a great deal of compliance and legislation that you’ll need to know.
You’ll constantly be thinking and dealing with figures. Dealing with significant amounts means you’ll have to be on the ball always.
Combining your sales and analytical skills will allow you to be successful. The skills needed to be a broker sometimes take years to master.

How much do Loan Officers make?

Loan officers actually make a handsome amount when accumulated with their salaries and average commission they may make on certain deals. There are of course some states where the salaries are a lot more in low paying states, and this table will show you how.

Rank State Adjusted Salary Average Wage Cost Of Living
1 Kansas $93,793 $84,320 89.9
2 Texas $92,513 $83,910 90.7
3 Nebraska $89,235 $81,740 91.6
4 Illinois $86,279 $81,620 94.6
5 Arkansas $84,948 $73,990 87.1
6 Missouri $84,679 $76,550 90.4
7 Georgia $82,122 $75,060 91.4
8 Virginia $79,801 $80,440 100.8
9 Florida $79,348 $78,000 98.3
10 New York $78,969 $103,450 131.0
11 Minnesota $78,789 $79,420 100.8
12 Nevada $77,725 $80,290 103.3
13 New Hampshire $77,350 $90,500 117.0
14 North Carolina $76,900 $72,210 93.9
15 Ohio $76,791 $72,030 93.8
16 Mississippi $76,088 $65,360 85.9
17 Oklahoma $76,020 $67,810 89.2
18 Wisconsin $75,816 $73,390 96.8
19 Wyoming $75,740 $69,530 91.8
20 Indiana $75,363 $67,450 89.5
21 North Dakota $74,778 $74,330 99.4
22 Kentucky $74,530 $67,450 90.5
23 Alabama $74,407 $67,860 91.2
24 Iowa $74,263 $67,580 91.0
25 Connecticut $71,832 $91,730 127.7
26 Tennessee $71,375 $63,810 89.4
27 Washington $71,131 $74,830 105.2
28 Massachusetts $70,869 $94,540 133.4
29 New Jersey $70,172 $85,540 121.9
30 South Carolina $69,798 $69,240 99.2
31 Delaware $69,132 $70,100 101.4
32 Maine $68,898 $76,340 110.8
33 Colorado $68,410 $71,010 103.8
34 Pennsylvania $67,337 $68,280 101.4
35 Maryland $67,123 $84,240 125.5
36 Oregon $66,332 $76,680 115.6
37 Idaho $66,026 $60,810 92.1
38 New Mexico $65,616 $63,320 96.5
39 Arizona $63,704 $62,430 98.0
40 Montana $63,402 $63,910 100.8
41 Utah $61,978 $57,640 93.0
42 South Dakota $60,973 $63,230 103.7
43 West Virginia $59,282 $55,370 93.4
44 Louisiana $59,272 $56,190 94.8
45 California $58,086 $78,940 135.9
46 Rhode Island $57,580 $69,500 120.7
47 Vermont $54,789 $66,350 121.1
48 Alaska $54,248 $71,120 131.1
49 Hawaii $43,353 $72,790 167.9

Note: Sample rates have been extracted online, courtesy of Zippia.


Loan officers are responsible for evaluating a creditor and determining whether they’re approved for a certain type of loan. Loan officers have to be very careful in scrutinizing the creditworthiness of a borrower especially in cases of a mortgage loan.

The average yearly salary for a loan officer in 2019 was $73,650 per year and according to the Bureau of Labor Statistics, the lowest 10% of wage earners in this field earn a yearly salary that is just under $32,820, but earners in the top 10% earn an average salary of over $132,290.

Sandra Johnson

Sandra Johnson

Sandra Johnson was a few years out of school and took a job as a life insurance agent in California, selling coverage door-to-door for Prudential. The experience taught her about the technical components of insurance and its benefits for individuals and society, as well as the misunderstandings people often have about insurance. She has over ten years’ experience in the insurance industry, having worked as both a Broker and Underwriter, assisting clients across a broad range of industries. At Insurance Noon, Sarah diligently gathers all the required information and curates up pieces to provide meaningful insurance solutions. Her personal value proposition is to demonstrate a genuine interest in always adding value for clients.Her determined approach to guiding clients has turned her into a platinum adviser to multiple insurers.

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