How to become a loan officer
Evaluate, authorize, or recommend approval of commercial, real estate, or credit loans. 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.
Steps to get there
Most employers expect most of these occupations require a four-year bachelor's degree, but some do not..A considerable amount of work-related skill, knowledge, or experience is needed for these occupations. For example, an accountant must complete four years of college and work for several years in accounting to be considered qualified.
What loan officers do
- Meet with applicants to obtain information for loan applications and to answer questions about the process.
- 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.
- Review and update credit and loan files.
Skills that matter most
- Active Listening
- Speaking
- Reading Comprehension
- Critical Thinking
- Writing
- Mathematics
- Active Learning
- Monitoring
Is loan officer a good career?
On the numbers, this job pays above the typical job. Median pay is 50% above the all-occupation median. Whether it fits you depends on the work itself, the schooling you are willing to do and where you want to live.
Where it pays most
- Massachusetts $101,600
- Connecticut $95,730
- New York $95,710
- Minnesota $95,170
- Colorado $94,520
Loan Officers salary by state and city
Sources: O*NET® 31.0 (CC BY 4.0, USDOL/ETA) and BLS Employment Projections 2025–35. Pay: BLS OEWS May 2025.