You probably aspire to chalk out a career in a prominent financial institution after graduating from college. You feel this is the right path to earn a decent living. Many experts within the industry say you could consider working as a loan officer. You could end up with an annual salary of $64,660.They explain that such a professional perform certain important tasks for the general public. He/she helps customers from diverse backgrounds determine the ideal loans which suit their specific needs. Such individuals may require this mode of finance to make certain large purchases. These could be acquiring a new house, automobile, or pay for their children’s university education. This specialist may also assist entrepreneurs in deciding the perfect commercial loans for their businesses.
How do aspirants become a successful loan officer?
These industry professionals further state it isn’t difficult for aspirants to become successful loan officers. With the right aptitude and attitude, these individuals can easily make their dreams come true. However, they do need to go through the following 5 important steps:
- Acquire a relevant bachelor’s degree from a credible educational institution
The officials of prominent financial institutions don’t hire everyone for the post of loan officers. They prefer candidates with a bachelor’s degree to work as such professionals for their establishments. These individuals should specialize in fields such as economics, statistics, accounting, finance, mathematics, and business studies. At the end of the day, they are responsible for scrutinizing their clients’ financial statements. On top of this, they should have exceptional communication skills. They shouldn’t have any problems clearing their all customers’ doubts regarding loans they propose to take. Moreover, they should be able to assist them in completing the necessary paperwork.
- Gain the necessary work experience
The top management of certain financial institutions does employ people with bachelor degrees in other fields. However, they insist these individuals acquire adequate work experience in areas such as customer service and banking. Only then can the candidates apply to take on the responsibilities of loan officers in their establishments. This is a fact which most aspirants should be aware of.
- Complete a necessary training course
The officials of most financial institutions expect all aspirants to complete a specific on-the-job course successfully. This is prerequisite for every candidate who wishes to become loan officers. Even individuals with a bachelor’s degree in finance, business studies, economics, and statistics need to undergo such training. During the program, they learn to use important software applications and gain in-depth knowledge of underwriting. This helps them to function efficiently in a normal work setting.
- Obtaining a license
The authorities make it mandatory for loan officers to acquire licenses as mortgage loan originators (MLO). To obtain this permit, they need to undergo a specific course. On complete it, they need to sit for and successfully pass a selection examination. Once this is over, they have to appear for a background check to determine their creditworthiness. Aspiring candidates need to understand that the MLO test is held both at the state and federal level. Experts from credible financial companies like https://www.libertylending.com/ insist that these individuals should take the federal MLO test. It allows them to work in location throughout the country. However, they have got to renew their licenses every year without fail. This is a fact which they can’t ignore.
- Obtain a certification
Applicants who want to become successful loan officers need to understand obtaining a certification isn’t necessary. However, taking this course of action go a long way in improving their employment prospects. There are a number of prominent institutions who conduct such courses. The 2 most popular are the Mortgage Bankers Association (MBA) and the American Bankers Association (ABA). These establishments offer programs like ‘certified lender business banker’ certified trust and financial advisor.’ The officials of such concern only admit individuals with certain credentials into their course. They should have a specific number of years of experience under their belts and pass a selection exam. Unlike the MLO license, the successful candidates need to renew their certifications only every 3 years.
What type of responsibilities do a loan officer carrying out for their clients?
These industry specialists say loan officers are responsible for evaluating and approvals their clients’ loan applications. In doing so, they need to perform the following functions:
- They have contact certain individuals or entrepreneurs to ask them if they require any loans. The financial institutions who hire such candidates as loan officers give them this clientele list. They need to call up these people whenever it is convenient or visit them personally.
- On meeting such applicants, they have to gather all their relevant personal and financial details.
- In many cases, they may need to ask them certain specific questions.
- These professionals have then got to explain the various types of loans on offer. In doing so, they need to specify on the stringent requirements of these modes of finances.
- In many cases, clients even request them to suggest one which suits their specific needs.
- After selecting a suitable loan scheme, these experts then have to scrutinize their applicants’ finances. They’ll need to give particular importance to the creditworthiness of these individuals and their incomes level. This goes a long way in determining whether these borrowers meet the necessary eligibility requirements. These people should be able to pay back the loan they take. If this is not the case, they have no option but look for other suitable alternatives.
- When writing up loan agreements for their clients, these professionals need to be very careful. They got to comply with the various regulations which federal and state government impose. Only then do these financial documents become authentic. After all, the exchange of money is done on the basis of such paperwork. If there are any discrepancies, they’ll be held liable. This is obviously the last thing they want.
- After completing such documents, they need to submit them to the top management of their concerns. These are the officials who finally approve such loan applications for their clients.
Ambitious aspirants with bachelor’s degrees can easily earn their fortune by becoming loan officers. For this, they have to go through the above 5 important steps. Taking this course of action can change their lives for the better. It’s a decision they won’t regret taking in the long-run.