If you want to pursue a career as a loan officer, you’ll want to know how much mortgage loan officers make. These individuals are paid based on sales, so pay varies depending on several factors, including their skills and experience.
A loan officer may work for a company or on an individual basis. However, most people usually work for a bank or other financial institution. The loan officer is responsible for guiding the borrower through the approval process of their application.
Best Business Jobs ranked the profession of a loan officer as the 8th best job, thanks to its satisfaction rate. In addition to salary, future growth, work-life balance, and lack of work stress, among other positive factors that invite the practice of this profession.
What is the salary structure of a loan officer?
Mortgage loan officers who work for a large institution are more likely to receive a salary, benefits, and a commission. At the same time, one who works privately with a state license will rely on commissions alone for their income.
Commissions are tied to a monthly fee, which means that if you complete a certain amount of loans each month, you will get a high commission payment. But if you don’t reach the goal, you will receive a fixed minimum amount for each loan. So, to find out how much mortgage loan officers earn, you need to break it down by salary, commission, and benefits.
Base Salary
The nationwide salary for a loan officer varies. Different statistics have been done, with similar or opposite results, considering the city, experience, skills, education, and certifications. Here are some of the most popular statistics.
Salary.com estimates a loan officer’s salary ranges from $44.84 to $63.27. Indeed, it shows a considerable difference. Based on the aggregate salaries of about 10,000 officers, it is estimated an annual base salary for the professional is about $234.28. If experience is added to this, the result is as follows:
- 1 to 5 years: $199,395.
- 6 to 9 years: $312,515
- 10+ years: $343,253
ZipRecruiter shows their share with other numbers. According to their calculations, the annual salary is $74,838 or $36 an hour. But to get a sense of the delineation by seniority, Career Explorer teaches some insights:
- Senior loan officers earn an estimated $111,888 per year.
- Intermediate loan officers get $57,580 per year.
- Junior Loan Officers make $29,632 per year.
Commissions
Here the statistics are more extensive because mortgage loan officer commissions vary by rate division, benefits, salaries, and bonuses. However, Indeed estimates the equivalent of $27,600, compiling information from current and former employees.
Benefits
The benefits are relatively more common in a large company; the difference is in the breadth of job benefits and the need for many of them in a professional profile such as that of a loan officer because of the impression it imposes on the customer from the very first moment.
Here are just some of the benefits a person has when working as a mortgage loan officer:
- Eyesight insurance
- 401K
- 401K Matching
- Health insurance
- Dental Insurance
- Life Insurance
- Work from home
What a loan officer earns is not definitive with the figures presented. You must remember that several factors act on the salary. The statistics only give an initial idea of compensation. Ultimately, the salary will depend on the state where you operate, the company, your experience, and your skills.
What a mortgage loan officer does
They represent a corporate, bank, or other financial institution. The mortgage loan officer assists borrowers in the application process, as it is one of the most costly and complex loans. It is an applicant’s direct contact with an institution.
You can usually complete the process online, although most people prefer to talk to the more knowledgeable staff because of the complexity of the transaction. The loan officer is the one who approves the borrower’s application and makes sure it goes through to the underwriting department.
The officer also can counsel clients on loans that meet their current needs and situation. They may communicate with the underwriter, order a transaction and collect documents during the process.
These are some of the tasks the officer is responsible for:
- Working directly with clients to negotiate terms and loans.
- Maintaining and tracking loans.
- Generating referrals and new clients with strong relationships.
- Gathering and getting financial information to evaluate solutions and risks.
Highest-Paying Skills
As mentioned, how much a loan officer earns depends on several factors. Chief among them are the skills of the professionals. The more skills you possess, the better the remuneration. For example, if you have business skills like these:
- Sales experience
- Financial counseling
- FHA lending
- Real estate
- Refinance agreements
- Residential Lending
- Relationship Management
- Recruiting Practices
There are also essential soft skills that will help the loan officer climb the ladder:
- Analytical and critical thinking: having the ability to review tons of paperwork takes a bit of accuracy that doesn’t let speculation play when it comes to numbers. As well as the ability to realistically anticipate different parts of the process.
- Time management: scheduling and prioritizing projects among all requests.
- Verbal and written communication: clients must trust the officer without hesitation, as this process involves a lot of money. If you are a good talker, communication is one of your skills.
- Creative thinking: creativity plays an important role in problem-solving. If you are very clever, add it to the list of your skills.
Prospects for getting a good salary
Suppose you want to develop a career as a mortgage loan officer. You should know that a professional in this field has great potential for growth, especially people with great experience in sales, banking, and lending.
There is no easy way to develop into a high-paying, high-performing loan officer. It takes dedication and patience to climb the ladder little by little. The key is knowing how to sell and maintain a large portfolio of clients.
Knowing how much a mortgage loan officer earns is difficult, and giving fixed numbers is especially difficult. It all depends on the factors explained above. Above all, the person’s willingness to develop as an agent, stay in the field and climb to the top.