How to Become a Loan Officer


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How to Become a Loan Officer ?

Loan officers use a process called underwriting to assess whether applicants qualify for loans. After collecting and verifying all the required financial documents, the loan officer evaluates the information they obtain to determine the applicant’s need for a loan and ability to pay back the loan.

A large part of a loan officer’s job is sales and customer service. Some types of loan officers, like mortgage originators, must find their own clients, and loan officers who work for banks and credit unions are expected to generate new business for their employer. 

There are two primary ways a loan officer may choose to advance their career. Some loan officers choose to advance their career by pursuing opportunities at larger branches and firms where they can take on more responsibility. Other loan officers choose to advance their career by pursuing opportunities to become supervisors and managers who oversee other loan officers and staff.


Meet with loan applicants to gather personal information and answer questions.

Explain different types of loans and the terms of each type to applicants.

Obtain, verify, and analyze the applicant’s financial information, such as the credit rating and income level.

Steps to become a loan officer

Earn bachelor degree

Do an internship

Earn master degree

Gain some experience

Have excellent communication and interpersonal skills

Minimum Education

Bachelor degree in finance, economics, or business.


Bachelor in economics

Bachelor in finance

Bachelor in business

Master degree in business

Master degree in finance

Master degree in economics

MBA in finance

MBA in business

Certified Financial Marketing Professional (CFMP)

Certified Lender Business Banker (CLBB)

Certified Trust and Financial Advisor (CTFA)


The median annual wage for loan officers is $63,270

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