Frequently Asked Loan Officer Questions

How and where should I start the process?
Who are loan officers and what do they do?
Who are loan processors and what do they do?
What educational Qualifications do I need to become a Loan officer?
Where can a mortgage loan officer work?
Are there any other requirements to becoming a mortgage net loan officer?
What would be my annual earnings as a mortgage loan officer?
What is the difference between a mortgage loan and a commercial loan?

How and where should I start the process?

The fact is, just being here is your first step. The difference in a successful mortgage career and one that leads to failure is you commitment to succeed, coupled with the training and support you receive. Whether you are a newly licensed mortgage broker, a mortgage loan officer working with a big box lender, or a net loan officer working from home or in a virtual office, the second step on your journey to something more begins with making an inquiry here.

What are loan officers and what do they do?

A loan officer is the face of a mortgage company as they directly interact with the client. The core job functions of a mortgage loan officer involve:

1. Understanding the core products and services provided by a Mortgage Company.
2. Identifying and finding potential clients, or businesses, who are in need of a loan.
3. They assist borrowers through identifying programs which affordable meet the goal and needs of the customer.
4. They assist customers in completing the 1003 and gathering proper documentation to support the information contained within the 1003.
5. They analyze customer credit to identify what mortgage programs the borrower is eligible for.
6. The loan officer maintains close contact, effective communication and a ongoing relation with the client pre and post closing.
7. They facilitate the processing of the client file to close.
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Who are loan processors and what do they do?

Loan processors are very important too for you as a net loan officer, as they help you to maximize volume closings. Their job is to:

1. Guide prospective customers to providing all necessary documentation required by the mortgage company to clear a loan for closing.
2. Coordinate all parties involved with the closing to include the Title Company, Real Estate Agents, Sellers, etc.
3. Help a branch loan officer manage their active pipeline so the mortgage loan officer can focus on new business development.
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What Educational Qualifications do I need to become a Loan officer?

The fact is, to become a mortgage loan officer, an advanced degree, while helpful, is not a prerequisite to success, nor is it required. These days, a loan officer can work from home and doesn't necessarily need to work from a mortgage company office. With a traditional mortgage company, the basic requirement for applying for the post of a loan officer requires a bachelor's degree in finance or economics. As a branch loan officer, it's more about your knowledge of the mortgage industry and the products you represent than what you learned in school. If you have received training in Banking or sales, or if you have some experience in this sector, then it will prove to be an advantage - but is by no means necessary.

Where can a mortgage loan officer work?

A mortgage loan officer can work in banks or any other financial institution that offers mortgage loan products. From a survey conducted in 2004, it has been noted that there are 291,000 loan officers and 34,000 loan counselors working with banks and other financial institutions. Our goal is to help you find the right net loan officer program that allows great flexibility in where you can lend. Though some states have specific loan officer licensing requirements which must be met, many only require you work for a licensed branch office.

Are there any other requirements to becoming a mortgage net loan officer?

Apart from the minimum qualification and experience, you need to be familiar with computers and various applications related to to originating mortgages. The licensing requirement varies from state to state. Ideal net loan officer requirements can be found under Loan Officer Job Description.

What would be my annual earnings as a mortgage loan officer?

Although the earnings of a mortgage loan officer can vary from year to year, as this is a growing industry, the median as of 2004 was $48,830. The reality is, you're under producing if you can't make more than 100K a year in this industry. The fact is, with the proper training, support and marketing, many underachieving loan officers potentially double and triple their earning capability.

What is the difference between a mortgage loan and a commercial loan?

Every loan officer ideally needs to specialize in either commercial or mortgage loans. Commercial loans are very complex and require extensive knowledge beyond what is required within the residential mortgage market. While from time to time mortgage loan officers wear dual hats, they must have the background and training necessary before they will be allowed to originate commercial loan products unless they have a expert commercial loan mentor to guide them through the process.