Loan Officer Salary
The average Loan Officer in the United States can expect to rake in roughly $45K annually. The final incomes of Loan Officers generally vary between $29K and $77K; higher pay grades include potential for bonuses, profit sharing, and commissions as high as $14K, $10K, and $70K, respectively. Geography is the biggest factor affecting pay for this group, followed by the specific employer and tenure. Men are slightly outnumbered by their female counterparts who answered the questionnaire, who make up a slight majority at 52 percent. Most report receiving medical coverage from their employers and a majority collect dental insurance. Most workers in this position report high levels of job satisfaction.
Job Description for Loan Officer
A loan officer often works at a lending or financial institution. The loan officer will sometimes work with individual applicants or companies, depending on the position. Customer service is important, so that the client feels at ease and chooses the company for their loan needs on an ongoing basis. In some jobs, the loan officer will have sales goals that need to be attained.Read More...
It may sometimes be necessary to reach out to current and new clients to fulfill their loan needs. This may include creating marketing plans, in order to grasp the attention of clients. It is important to be able to understand the customer’s needs and to have a strong knowledge of what the company offers, in order to determine the products that will best suit their needs. The loan officer will determine if the customer is eligible for a loan. The loan officer will be responsible for collecting the documentation associated with the loans, so it is important to follow up with customers and to make sure that the documents are filled out properly. The loan officer may work with the underwriting department to keep up to date with the loan process.
Commission is often offered in this position, so it is important to serve customers in a quality manner. A bachelor’s degree in business or something similar may be necessary.
Loan Officer Tasks
- Obtain and compile financial information to evaluate loan applications and their risk.
- Generate new clients and referrals through strong relationship building.
- Track and maintain credit and loan data.
- Work directly with clients to review agreements, explain programs, and negotiate loans and terms.
Common Career Paths for Loan Officer
At the upper end, Loan Officers who move into a Bank VP or Branch Manager role can end up with a hefty increase in pay. The average income for Bank VPs & Branch Managers is a much higher $71K per year. Loan Officers typically move into roles as Banking Branch Managers or Commercial Loan Officers, and those positions pay $9K more and $23K more, respectively.
Loan Officer Job Listings
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Popular Employer Salaries for Loan Officer
Federal Credit Union, Farm Credit, Usaa Insurance, Wells Fargo & Co., and Wells Fargo Bank are all popular places to work. Loan Officers flock to Farm Credit for generous paychecks, where average earnings of $65K lead the pack in compensation; however, Farm Credit also provides employees with a wide spectrum of compensation ranging from $35K at one end to $93K at the other end.
With a median salary of only $34K (about half the top paying employer's rate), Federal Credit Union lags significantly in the earnings department.
Popular Skills for Loan Officer
Survey participants wield an impressively varied skill set on the job. Most notably, skills in Commercial Loans, Mortgage Loans, Financial Analysis, and Residential Loans are correlated to pay that is above average, with boosts between 8 percent and 17 percent. At the other end of the pay range are skills like Loan Processing, Customer Service, and bill collections. Those educated in Consumer Loans tend to be well versed in Loan Processing and Loan Underwriting.
Pay by Experience Level for Loan Officer
Median of all compensation (including tips, bonus, and overtime) by years of experience.
For Loan Officers, more experience in the field does not usually mean bigger paychecks. Although individuals who have less than five years' experience earn $40K on average, people with five to 10 years benefit from a notably larger average of $47K. People with 10 to 20 years of experience make an average of about $49K in this role. Individuals who have achieved more than 20 years of experience don't seem to earn much more than people who have 10 to 20 years under their belts; the more senior group reports an average income of $50K.
Pay Difference by Location
Loan Officers will find that Irvine offers an impressive pay rate, one which exceeds the national average by 113 percent. Loan Officers can also look forward to large paychecks in cities like Washington (+45 percent), Chicago (+44 percent), New York (+37 percent), and Kansas City (+29 percent). Place of residence plays a huge part in a Loan Officer's salary, with Tulsa Loan Officers earning salaries that are 26 percent less than the national average.
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Key Stats for Loan Officer
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