Becoming a loan officer can be a lucrative and rewarding career path. Not only is it a potentially high-paying option, but it’s accessible to individuals who do not have a bachelor’s degree. What’s more, mortgage brokers and lenders typically offer competitive benefits packages that include healthcare coverage, vacation time, and other attractive benefits.
In this post, we’ll explain what a loan officer does and take a look at some of the benefits of being a loan officer. Read on for a detailed overview of benefits and steps it takes to become a loan officer, or use the links below to navigate to the section that best answers your query.
- What is a Loan Officer?
- How to Become an MLO
- 6 Benefits of Being a Loan Officer
- Do Loan Officers Get Commission?
- Where to Start?
What is a Loan Officer?
A loan officer is an employee of a broker or lender whose role it is to help consumers apply for loans. While there are many types of loan officers, mortgage loan officers (MLOs) are the kind that most people are familiar with.
To help potential borrowers navigate the loan application process, loan officers will evaluate an applicant’s creditworthiness and determine whether or not they recommend them for loan approval. If a loan officer does recommend an applicant for approval, they’ll be able to advance in the loan approval process.
Now that you have a general understanding of what a loan officer is, let’s take a closer look at a day in the life of an MLO and the specific job duties they may be responsible for:
- Visiting with loan applicants
- Identifying and marketing to potential homebuyers
- Assisting candidates with loan application paperwork
- Exemplify excellent customer service skills
- Share knowledge and expertise about the lending and mortgage industries when applicable
- Adhere to state and federal lending regulations
- Inform loan applicants of the various types of loans that may be available to them
How to Become an MLO
If the duties above align with your personal strengths and professional goals, becoming a mortgage loan officer may be a suitable career path for you. Getting your mortgage loan officer license involves the following steps:
- Register with the Nationwide Multistate Licensing System (NMLS) and Registry. Here, you can sign up for an account and receive an ID number.
- Complete 20 hours of pre-licensing education courses from an NMLS-approved source.
- Pay for your SAFE MLO exam.
- Pass the SAFE MLO Test with an exam score of 75% or better.
- Before taking the exam, it is strongly advised that you research NMLS test difficulty and what to expect. Our Prep2PassTM mobile app is designed to assist you in preparing for and passing the SAFE MLO Test.
- After receiving a passing score, you may apply for a license with the NMLS.
- Agree to a background check, credit report, and fingerprint scan.
- Find a job. You must be associated with a lender before your NMLS license becomes active.
6 Benefits of Being a Loan Officer
Making a decision concerning your career involves careful consideration of the job scope, educational requirements, and your intrinsic goals. Additionally, it’s a good idea to look at the benefits of being a loan officer to make sure it’s a good fit for you.
So, what are the loan officer benefits you might look forward to in an MLO position?
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- Flexible schedule: While you may be required to work on weekends on occasion, MLOs typically maintain flexible schedules, which is ideal for parents and other individuals who like to enjoy a consistent work-life balance.
- Comprehensive benefits packages: Mortgage brokers and lending institutions generally offer generous benefits packages to their full-time employees. Beyond healthcare, an MLO benefit package may include paid holidays, vacation time, retirement planning, life insurance, catered lunches, team outings, etc.
- High starting salaries: According to recent salary data, the average base pay for loan officers in the U.S. is $56,311 per year, not including bonuses and commission. Keep in mind, some mortgage loan officers solely work on commission, without a base salary. Before you move forward with a potential employer, make sure their compensation package suits your needs.
- Substantial job security: Most consumers in the U.S. seek funding from a mortgage lender when it’s time to buy a home. As a result, mortgage loan officers tend to enjoy more comfortable job security than many other professions.
- Low barrier to entry: Unlike many professions in the modern job market, a bachelor’s degree is not required to become a mortgage loan officer. However, prospective MLOs must pass a licensure exam and complete continuing education requirements to maintain their license throughout their career. Note: while a college degree is not required to become an MLO, it could give you an edge against other candidates.
- Opportunity for commission: One of the most attractive loan officer benefits is that in addition to base compensation, MLOs may be eligible for commission. Extra income can be a major incentive for dedicated loan officers. However, it’s important to remember that certain employers may have MLOs work on a commission-only basis.
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Do Loan Officers Get Commission?
Yes, most loan officers are eligible for commission. In fact, commission is among the top benefits of being a loan officer. As we mentioned in the section above, it’s important to remember that some loan officers make commission on top of their base salary, while others may earn only on commission. As you consider a career in mortgage lending, make sure to keep income expectations in mind.
Where to Start?
There’s no better time than now to start your career in the mortgage industry, just take a look at these success stories from MLOs. Now that you have a clearer understanding of what to expect, including the benefits of being a loan officer, you can begin working on the criteria for becoming an MLO. As you begin and advance in your career as a mortgage loan officer, refer to Diehl Education for pointers, test prep, and continuing education requirements.
