Loan Officer Salary
Median pay for Loan Officers in the United States is around $45K annually. Cash earnings for Loan Officers — which occasionally include more than $14K from bonuses and more than $10K from profit sharing — stretch from around $29K to approximately $77K. The most important factor affecting compensation for this group is location, followed by the specific employer and years of experience. Men are slightly outnumbered by their female counterparts who answered the questionnaire, who make up a slight majority at 53 percent. Job satisfaction is reported as high by the vast majority of workers. Most report receiving medical coverage from their employers and the greater part collect dental insurance. The data for this synopsis comes from respondents who took the PayScale salary survey.
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 most often move into positions as Banking Branch Managers or Commercial Loan Officers; those groups report median salaries that are $9K higher and $23K higher, respectively.
Loan Officer Job Listings
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Popular Employer Salaries for Loan Officer
Federal Credit Union, Farm Credit, Usaa Insurance, Wells Fargo Bank, and Dollar Bank are leaders in the field that employ a large number of Loan Officers. Farm Credit offers the largest salaries in town ($67K on average), but the considerable range in workers' salaries creates a rather varied pay scale that stretches from $35K to $105K.
With a median employee salary of $34K, Federal Credit Union pays significantly less than its competitors (about half the top paying employer's rate).
Popular Skills for Loan Officer
Loan Officers seem to require a rather large skill set. Most notably, skills in Commercial Loans, Mortgage Loans, Financial Analysis, and Residential Loans are correlated to pay that is above average, with boosts between 7 percent and 17 percent. Skills that seem to negatively impact pay include Loan Processing, bill collections, and Customer Service. 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.
Loan Officers do not generally earn higher incomes from more experience in the field. Salaries for the relatively untried average out to around $39K, but survey participants with five to 10 years of experience earn a significantly higher median of $46K. The average pay reported by folks with 10 to 20 years of experience is around $49K. In the end, the overall pattern seems to be that more experience generally corresponds to higher pay; a Loan Officer with more than 20 years of experience can earn $52K on average.
Pay Difference by Location
Home to some of the best pay for Loan Officers, Irvine offers exceptional salaries, 114 percent above the national average. Loan Officers can also look forward to large paychecks in cities like Chicago (+66 percent), Denver (+47 percent), New York (+31 percent), and Kansas City (+28 percent). Loan Officers in Tulsa make 26 percent less than the national average, proving that location is a major factor in pay. Two other places where employers offer below-median salaries are Pittsburgh (5 percent less) and Columbus (4 percent less).