How much does a mortgage loan officer make?

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The Role of a Loan Officer

While every loan officer is required to be licensed, part of the allure of this job is that the role tends to pay well without requiring a professional degree. It isn’t a job for everyone, though.

1. Duties of a Loan Officer

The duties of a loan officer include visiting loan

The duties of a loan officer include visiting loan applicants and completing lots of paperwork, especially for mortgages. Loan officers also possess comprehensive knowledge about the industry and excellent customer service skills. A loan officer is licensed with the necessary federal and state authorities and adheres to the regulations of the lending process. A loan officer will bring their expertise to the table when they work with you.

Loan officers know all about the many types of loans a lender may offer, and they can give you advice about the best option for you and your situation.

Discuss your needs with your loan officer. They can help direct you toward the best loan type for your situation, whether that’s a conventional loan or a jumbo loan. They can even help with reverse mortgages and construction loans.

2. The Role of a Loan Officer in the Screening Process

Your loan officer is your direct contact when you’re applying for a loan. They will research and review your financial history and assess whether you qualify for a mortgage. You won’t have to worry about regularly contacting all the people involved in the mortgage loan process, such as the underwriter, real estate agent, settlement attorney and others, because your loan officer will be the point of contact for all of the involved parties. This will alleviate you of the stress of trying to keep track of all the various representatives and their duties.

Because the process of a loan transaction can be a complex and costly one, many consumers prefer to work with a human being rather than a computer. This is why banks may have several branches — they want to serve the potential borrowers in various areas who want to meet face-to-face with a loan officer.

Meeting with a loan officer is your opportunity to prove your creditworthiness. You can take this chance to explain anything that may have a negative impact on your creditworthiness, such as:

  • A missed payment on your credit card
  • Gaps in employment
  • Drops in your credit score

Loan officer responsibilities also include answering a would-be borrower’s questions, so use this opportunity to ask your questions.

A loan officer will screen you to determine if you qualify for underwriting. They’ll factor in your annual salary, credit score, debt-to-income ratio and total debt amount, but the numbers aren’t the only important factors in your ability to qualify for a mortgage. If you can make a connection with a loan officer and explain the circumstances of your situation to a human being, you may have a better chance of successfully obtaining a loan.

3. The Role of a Loan Officer in the Loan Application Process

The mortgage application process can feel overwhel

The mortgage application process can feel overwhelming, especially for the first-time homebuyer. But when you work with the right loan officer, the process is actually pretty simple. When it comes to applying for a mortgage, the process can be broken down into six phases:

  1. Pre-approval: This is the phase in which you find a loan officer and get pre-approved.
  2. Shopping for a home: This is the phase you’ve been looking forward to — shopping for your dream home.
  3. Mortgage application: A lender reviews you application during this phase and provides you with a loan estimate.
  4. Loan processing: During this phase, loan processors will verify everything on your application.
  5. Underwriting: In this phase, the underwriter determines whether you’re a good loan candidate for the lender.
  6. Closing: During this phase, you’ll sign all the final documents and pay for closing costs.

What is your loan officer’s role during these phases? If your loan officer approves you after the screening process, they will help prepare your application. During the loan processing phase, your loan officer will contact you with any questions the loan processors may have about your application. Your loan officer will then pass the application on to the underwriter, who will assess your creditworthiness. If the underwriter approves your loan, your loan officer will then collect and prepare the appropriate loan closing documents.

The amount of work this entails for the loan officer depends on what type of loan you’re applying for. Usually, a secured loan will require more documentation than an unsecured loan. Mortgage loans, in particular, are known for requiring a large amount of paperwork because of the several mortgage regulations at the federal, state and local levels.

A good loan officer can be a key player in ensuring that your loan application process goes smoothly.

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Loan Officer Benefits

Most full-time loan officers receive standard benefits like health, vacation, and access to retirement accounts. Most loan officers work for a bank or private company, so the benefits vary depending on their employer.

Assistant to Loan Officer

Chicago , Illinois Summit Funding Inc.

… 900 N Franklin Street, Chicago.Starting pay ranges between $17-$22/hr DOE but also offers excellent potential for professional and …

Loan Officer Job Description

  • Sell, sell, sell! Always be closing!
  • That’s pretty much the job description of a loan officer
  • But you also have to be well-versed in customer satisfaction, mortgage lingo, and product knowledge
  • And stay up-to-date on the many rules/regulations involved

First off, a loan officer may be referred to as a mortgage planner, lending officer, MLO, mortgage specialist, dedicated lending associate, loan consultant, loan agent, mortgage professional, senior of any of these, or junior of any of these.

There are lots of creative names for the position depending on the company in question, but the job description will likely be the same regardless.

A loan officer may come into work in the late morning around 9 or 10am and work until 6-9pm.

The time may be structured to work around when companies are allowed to solicit consumers in their homes. The traditional peak hours for sales calls take place in the early evening, between 6pm and 9pm.

Of course, you could also be a go-getter who arrives at 6am and only works until the early afternoon. There is certainly flexibility when it comes to working hours, though it does depend on the type of company you work for.

If you work for a large company, such as a depository bank, credit unions, or a mortgage banker, chances are you’ll work the typical 9-5 schedule since bank branches are only open during those hours.

If you work for a smaller mortgage company, or a broker, you might be able to set your own hours and do whatever you please.

This has to do with compensation, as the former will likely get a base salary along with commission, while the latter will likely be a commission-only employee.

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Mortgage brokers won’t care when you come in or leave as long as you’re closing loans.

Money aside, the culture will be a lot different at a large lending institution versus a small shop. If you can stomach a dress code and an uber-corporate environment, the bank setting might work out nicely.

If you’re the type who would prefer to run your own business, but don’t have the knowledge or the wherewithal, a small shop could be a desirable place to be. At least to start.

Loan Officer Assistant

Melville , New York RemX Specialty Staffing

… IS NOT REMOTE WILL REQUIRE IN OFFICE TRAINING. BASE SALARY $40K MONTHLY BONUS OF UP TO $10k Key Responsibilities and Essential Functions …

How Much Does a Loan Officer Make an Hour?

  • Some loan officers are paid hourly if they work at big retail banks
  • And may not actually be paid on their loan volume
  • But many loan officers are paid commission-only in lieu of a base salary
  • Which you can break down into hourly wages at year-end (it may often be much better than a guaranteed hourly wage)

As noted, MLOs are typically not paid hourly, and are instead paid commission for the loans they bring in and fund.

This means total compensation can range significantly based on the sales performance of the loan officer in question. It also depends on how much a loan officer makes per loan.

If the LO works for a small shop and has very little support, they might make a mortgage point or two per loan. By that, I mean 1-2% of the loan amount, which may or may not be split with their broker or mortgage company.

On a $500,000 loan, we’re talking $5,000 – $10,000, less any costs and splits. As you can see, the money can be really good if you’re even mildly successful in this industry, especially if you operate in an expensive region of the country.

Conversely, those who work at big banks and credit unions and are essentially fed a constant stream of clients via walk-ins, incoming phone calls, and the like, may only receive a small commission relative to those going it alone.

For example, we might be talking about 20-30 basis points, or bps, per loan closed. Represented as a fraction, that’s .20% to .30% of the loan amount. Using the same $500,000 loan amount, that’s $1,000 to $1,500 per loan. Still good, but not as lucrative as our earlier example.

However, this latter group might get a small base salary, along with benefits like 401k and insurance and so forth. And as noted, they get leads, which can be huge for the individual who is unable or unwilling to chase after new business.

If you work for a wholesale mortgage lender and are an Account Executive (the LO equivalent), the commission might be even lower, sometimes less than 10 bps per loan.

Lastly, let’s talk about quotas. Sometimes the company you work for will have a monthly quota that must be met to get paid the higher rates of commission.

So if you don’t close X million per month, you might get paid a lot less, possibly just a fixed dollar amount per loan, such as $250 or $500.

Be sure to take a good look at the company’s compensation package so you fully understand all the particulars. And if you don’t, speak up and ask for clarification.

Years of Experience

Loan originators can expect to earn more as they gain job experience, however, most do move on to other careers after awhile. A survey by PayScale.com showed the following correlation between years on the job and compensation:

  • 0-5 years: $40,000 
  • 5-10 years: $70,000 
  • 10-20 years: $81,000 
  • 20+ years: $51,000

Find a Loan Officer at Assurance Financial

At Assurance Financial, we have over 120 mortgage loan officers who work with our clients to find the best lending solutions. We service a loan from beginning to end, saving our borrowers time and making the entire process more convenient with the highest quality digital tools available. We’re an independent, full-service lender and we enable our borrowers to purchase their dream homes, whether it’s their first home, a vacation home or an investment property.

We bring integrity and honesty to our work and strive to do what’s best for our customers. We’re licensed in 39 states and housed in 20 locations. Find the perfect loan officer with Assurance Financial and get pre-qualified before you begin the search for your dream home. Apply for a loan in under 15 minutes with our digital loan assistant, Abby, today!

What Is the Average Salary for a Loan Officer Assistant?

There isn't an average salary for a loan officer assistant, as it depends on too many factors from the company where the assistant is employed, if they work hourly or for an annual salary, and experience. According to the BLS, financial clerks who may do similar work as an assistant to a loan officer earn a median salary of $41,520.

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