Loan officers review, approve, or recommend the appropriate approval of various loan applications to various financial institutions. The process of loan approval is critical in the overall functioning of any financial institution.
It is necessary to have a loan officer because there are instances when loan officers are required to be present at various stages of the loan process, such as at the application, review, and acceptance stage. These loan officers may be assigned to specific areas within a bank or they may be responsible for performing a number of functions.
A loan officer can be an individual who works for a financial institution or a company that acts on their behalf. There are several companies who hire individuals to perform various functions, including being loan officers. Most companies that hire employees will have some sort of training program.
When applying for employment as a loan officer, the applicant should not be concerned about the pay rate offered. Pay rates vary widely. The pay rate for a loan officer may be considerably higher than an accountant or financial adviser. But in the end, these are just individuals with the same education level and experience.
In addition, there are many loan officer jobs that involve a great deal of responsibility. Many of these positions require a good amount of education and experience in order to successfully complete the tasks. These positions often take several years to complete.
To be a loan officer, an individual must have a bachelor’s degree in finance, business administration, accounting, or a related field. The salary received by loan officers also varies greatly depending on what position they hold, as well as the location where they work.
The salary of a loan officer receives is based upon many factors. Some of these factors include education, experience, location, and the amount of time spent working. A person who has a bachelor’s degree in finance, business administration, accounting, or similar field often earns more than someone with only a high school diploma. Experience is often determined by the number of loan officer jobs a person has performed.
The amount of time a loan officer works is also a consideration. If an individual does not receive the hours required to complete the job duties, this will affect the salary earned. Most banks will require a loan officer to work a minimum of thirty hours per week, though they may offer overtime if the employee works a larger hours.
Another important qualification for being a loan officer is certification from a national certification program or association. Many states require the state’s attorney general to certify an individual for a loan officer job. While the certification is not necessary for employment, it does give a better chance at getting a better salary.
The National Association of Securities Dealers or the Local Chamber of Commerce both provide a credentialing system and a list of qualified persons. Many other organizations, including state agencies and private companies, have an excellent list of potential applicants available online.
Depending on where the officer is employed, they will also undergo specific state certification exams to become licensed. Once the person becomes a licensed, they may be required to attend continuing education classes to keep their license current.
To become certified, each state has its own requirements. The exam includes questions on everything from customer service skills to credit and financial knowledge. It also requires the borrower to complete a book of standards for their specific state.
When the borrower takes the state’s certification board certification exam, he or she must pass on a written test and an oral exam. They can take the written and oral exams at their convenience, but they must submit a resume along with their application to ensure the certification board that the individual has passed all the required courses.
The National Center for Education Statistics (NCES) publishes a series of books that is used by every state in the nation as a prerequisite for passing their state certification examination. These books are used as a guide for the individual applying to become a certified loan officer. They contain questions and answers that outline everything that is asked of a loan officer.
There are some companies and institutions that can train their graduates on their specific state certification examinations for a fee. A certificate of completion from one of these institutions is good enough to become a certified loan officer in most states.