Career profile for Loan Officer

What does a Loan Officer do?

Loan Officers evaluate, authorize, or recommend approval of commercial, real estate, or credit loans.

In addition, Loan Officers

advise borrowers on financial status and payment methods,
includes mortgage loan officers and agents, collection analysts, loan servicing officers, loan underwriters, and payday loan officers.

What kind of tasks does a Loan Officer perform regularly?

Loan Officers are often responsible for overseeing or executing some or all of the following tasks:

Meet with applicants to obtain information for loan applications and to answer questions about the process.
Analyze applicants' financial status, credit, and property evaluations to determine feasibility of granting loans.
Approve loans within specified limits, and refer loan applications outside those limits to management for approval.
Explain to customers the different types of loans and credit options that are available, as well as the terms of those services.
Submit applications to credit analysts for verification and recommendation.
Review loan agreements to ensure that they are complete and accurate according to policy.
Obtain and compile copies of loan applicants' credit histories, corporate financial statements, and other financial information.
Review and update credit and loan files.
Work with clients to identify their financial goals and to find ways of reaching those goals.
Handle customer complaints and take appropriate action to resolve them.
Stay abreast of new types of loans and other financial services and products to better meet customers' needs.
Market bank products to individuals and firms, promoting bank services that may meet customers' needs.
Analyze potential loan markets and develop referral networks to locate prospects for loans.
Compute payment schedules.

The above responsibilities are specific to Loan Officers. More generally, Loan Officers are involved in several broader types of activities:

Activities	Importance	Details
Getting Information		Observing, receiving, and otherwise obtaining information from all relevant sources.
Evaluating Information to Determine Compliance with Standards		Using relevant information and individual judgment to determine whether events or processes comply with laws, regulations, or standards.
Establishing and Maintaining Interpersonal Relationships		Developing constructive and cooperative working relationships with others, and maintaining them over time.
Processing Information		Compiling, coding, categorizing, calculating, tabulating, auditing, or verifying information or data.
Analyzing Data or Information		Identifying the underlying principles, reasons, or facts of information by breaking down information or data into separate parts.

Getting Information

Observing, receiving, and otherwise obtaining information from all relevant sources.

Evaluating Information to Determine Compliance with Standards

Using relevant information and individual judgment to determine whether events or processes comply with laws, regulations, or standards.

Establishing and Maintaining Interpersonal Relationships

Developing constructive and cooperative working relationships with others, and maintaining them over time.

Processing Information

Compiling, coding, categorizing, calculating, tabulating, auditing, or verifying information or data.

Analyzing Data or Information

Identifying the underlying principles, reasons, or facts of information by breaking down information or data into separate parts.

What is a Loan Officer salary?

The median salary for a Loan Officer is $63,960, and the average salary is $76,930. Both the median and average roughly describe the middle of the Loan Officer salary range, but the average is more easily affected by extremely high or low salaries.

Many Loan Officers earn significantly more or less than the average, due to several factors. About 10% of Loan Officers earn less than $33,650 per year, 25% earn less than $45,540, 75% earn less than $93,490, and 90% earn less than $133,850.

Between the years of 2020 and 2030, the number of Loan Officers is expected to change by 1.3%, and there should be roughly 25,000 open positions for Loan Officers every year.

Median annual salary: $63,960
Typical salary range: $33,650 - $133,850
Projected growth (2020 - 2030): 1.3%

What personality traits are common among Loan Officers?

Interests

Career interests describe a person's preferences for different types of working environments and activities. When a person's interest match the demands of an occupation, people are usually more engaged and satisfied in that role.

Compared to most occupations, those who work as a Loan Officer are usually higher in their Conventional, Enterprising, and Social interests.

Loan Officers typically have very strong Conventional interests. Conventional occupations frequently involve following set procedures and routines. These occupations can include working with data and details more than with ideas. Usually there is a clear line of authority to follow.

Also, Loan Officers typically have very strong Enterprising interests. Enterprising occupations frequently involve starting up and carrying out projects. These occupations can involve leading people and making many decisions. Sometimes they require risk taking and often deal with business.

Lastly, Loan Officers typically have moderate Social interests. Social occupations frequently involve working with, communicating with, and teaching people. These occupations often involve helping or providing service to others.

Values

People differ in their values, or what is most important to them for building job satisfaction and fulfillment.

Compared to most people, those working as a Loan Officer tend to value Relationships, Independence, and Support.

Most importantly, Loan Officers very strongly value Relationships. Occupations that satisfy this work value allow employees to provide service to others and work with co-workers in a friendly non-competitive environment.

Second, Loan Officers strongly value Independence. Occupations that satisfy this work value allow employees to work on their own and make decisions.

Lastly, Loan Officers strongly value Support. Occupations that satisfy this work value offer supportive management that stands behind employees.

Psychological Demands

Each occupation brings its own set of psychological demands, which describe the characteristics necessary to perform the job well.

In order to perform their job successfully, people who work as Loan Officers must consistently demonstrate qualities such as integrity, dependability, and cooperation.

Below, you'll find a list of qualities typically required of Loan Officers, ranked by importance:

Demands	Importance	Details
Integrity		Job requires being honest and ethical.
Dependability		Job requires being reliable, responsible, and dependable, and fulfilling obligations.
Cooperation		Job requires being pleasant with others on the job and displaying a good-natured, cooperative attitude.
Attention to Detail		Job requires being careful about detail and thorough in completing work tasks.
Initiative		Job requires a willingness to take on responsibilities and challenges.

Integrity

Job requires being honest and ethical.

Dependability

Job requires being reliable, responsible, and dependable, and fulfilling obligations.

Cooperation

Job requires being pleasant with others on the job and displaying a good-natured, cooperative attitude.

Attention to Detail

Job requires being careful about detail and thorough in completing work tasks.

Initiative

Job requires a willingness to take on responsibilities and challenges.

What education and training do Loan Officers need?

Many Loan Officers will have a four-year bachelor's degree, but some do not.

Loan Officers usually need several years of work-related experience, on-the-job training, and/or vocational training.

Educational degrees among Loan Officers

0.9% did not complete high school or secondary school
13.1% completed high school or secondary school
21.7% completed some college coursework
10.4% earned a Associate's degree
42.3% earned a Bachelor's degree
10.5% earned a Master's degree
1.0% earned a doctorate or professional degree

Knowledge and expertise required by Loan Officers

Loan Officers may benefit from understanding of specialized subject areas, such as customer and personal service, economics and accounting, or mathematics knowledge.

The list below shows several areas in which most Loan Officers might want to build proficiency, ranked by importance.

Knowledge areas	Importance	Details
Customer and Personal Service		Knowledge of principles and processes for providing customer and personal services. This includes customer needs assessment, meeting quality standards for services, and evaluation of customer satisfaction.
Economics and Accounting		Knowledge of economic and accounting principles and practices, the financial markets, banking, and the analysis and reporting of financial data.
Mathematics		Knowledge of arithmetic, algebra, geometry, calculus, statistics, and their applications.
Sales and Marketing		Knowledge of principles and methods for showing, promoting, and selling products or services. This includes marketing strategy and tactics, product demonstration, sales techniques, and sales control systems.
Law and Government		Knowledge of laws, legal codes, court procedures, precedents, government regulations, executive orders, agency rules, and the democratic political process.

Customer and Personal Service

Knowledge of principles and processes for providing customer and personal services. This includes customer needs assessment, meeting quality standards for services, and evaluation of customer satisfaction.

Economics and Accounting

Knowledge of economic and accounting principles and practices, the financial markets, banking, and the analysis and reporting of financial data.

Mathematics

Knowledge of arithmetic, algebra, geometry, calculus, statistics, and their applications.

Sales and Marketing

Knowledge of principles and methods for showing, promoting, and selling products or services. This includes marketing strategy and tactics, product demonstration, sales techniques, and sales control systems.

Law and Government

Knowledge of laws, legal codes, court procedures, precedents, government regulations, executive orders, agency rules, and the democratic political process.

Important Abilities needed by Loan Officers

Loan Officers must develop a particular set of abilities to perform their job well. Abilities are individual capacities that influence a person's information processing, sensory perception, motor coordination, and physical strength or endurance. Individuals may naturally have certain abilities without explicit training, but most abilities can be sharpened somewhat through practice.

For example, Loan Officers need abilities such as oral comprehension, written comprehension, and oral expression in order to perform their job at a high level. The list below shows several important abilities for Loan Officers, ranked by their relative importance.

Abilities	Importance	Details
Oral Comprehension		The ability to listen to and understand information and ideas presented through spoken words and sentences.
Written Comprehension		The ability to read and understand information and ideas presented in writing.
Oral Expression		The ability to communicate information and ideas in speaking so others will understand.
Written Expression		The ability to communicate information and ideas in writing so others will understand.
Near Vision		The ability to see details at close range (within a few feet of the observer).

Oral Comprehension

The ability to listen to and understand information and ideas presented through spoken words and sentences.

Written Comprehension

The ability to read and understand information and ideas presented in writing.

Oral Expression

The ability to communicate information and ideas in speaking so others will understand.

Written Expression

The ability to communicate information and ideas in writing so others will understand.

Near Vision

The ability to see details at close range (within a few feet of the observer).

Critical Skills needed by Loan Officers

Skills are developed capacities that enable people to function effectively in real-world settings. Unlike abilities, skills are typically easier to build through practice and experience. Skills influence effectiveness in areas such as learning, working with others, design, troubleshooting, and more.

Loan Officers frequently use skills like active listening, speaking, and reading comprehension to perform their job effectively. The list below shows several critical skills for Loan Officers, ranked by their relative importance.

Skills	Importance	Details
Active Listening		Giving full attention to what other people are saying, taking time to understand the points being made, asking questions as appropriate, and not interrupting at inappropriate times.
Speaking		Talking to others to convey information effectively.
Reading Comprehension		Understanding written sentences and paragraphs in work-related documents.
Judgment and Decision Making		Considering the relative costs and benefits of potential actions to choose the most appropriate one.
Critical Thinking		Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions, or approaches to problems.

Active Listening

Giving full attention to what other people are saying, taking time to understand the points being made, asking questions as appropriate, and not interrupting at inappropriate times.

Speaking

Talking to others to convey information effectively.

Reading Comprehension

Understanding written sentences and paragraphs in work-related documents.

Judgment and Decision Making

Considering the relative costs and benefits of potential actions to choose the most appropriate one.

Critical Thinking

Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions, or approaches to problems.

What is the source of this information?

The information provided on this page is adapted from data and descriptions published by the U.S. Department of Labor, Employment and Training Administration under the CC BY 4.0 license. TraitLab has modified some information for ease of use and reading, and the U.S. Department of Labor, Employment, and Training Administration has not approved, endorsed, or tested these modifications.

If you have any questions or suggestions about this information, please send a message.

Career profile Loan Officer

Loan Officer

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