Loan officer
Written by admin on January 21st, 2008 in Loan officer.
90% of the loan officers are employed in credit unions, savings institutions, commercial banks and other financial institutions. A loan officer ought to have a bachelor’s degree in economics, finance or some related area. Some training or experience in sales, lending or banking would prove beneficial. The earning of a loan officer wavers as per the number of loans created. When the economy is good and the interest rate is less, the earning is good.
The duty of a loan officer is to pick out the potential clients and assist them to apply for the loan. A loan officer garners personal data regarding clients and businesses. Further, the loan officer assesses the possibility of repayment and the creditworthiness of the client. The loan officer has to guide prospective borrowers if they are facing hurdles to qualify for traditional loans. It is the work of any loan officer to gauge the most apt loan for any specific customer and divulge the particular requirements and terms concerning the loan.
The process of loan application takes place as follows. The loan officer makes a phone call or meets the prospective client. During this, the loan officer asks the objective of the loan. The client is given information regarding the varying types of loans and the terms and conditions. The loan officer replies any queries concerning the process and also helps in completion of the application form.
The loan officer analyzes and verifies the data on the application form and estimates the client’s creditworthiness. Frequently, loan officers find out the credit history by computer and calculate the credit score. If this credit score cannot be obtained or there are irregular economical conditions, the loan officer can ask for more financial data from the client. For commercial loans, copies of the company’s financial statements may be demanded. Then, the loan officer files this information and documents. Such a loan file is used to determine if the prospective client is able to satisfy the lender’s requirements. Then, the loan officer discusses the approval of the loan with the managers. In case the approval is granted, the repayment schedule is finalized with the client.
Loan officers deal in mortgage, consumer or commercial loans. The mortgage loans are meant to refinance an existing mortgage or to buy real estate. The consumer loans encompass personal, automobile and home equity loans. Commercial loans assist companies to buy new devices or enhance operations.
Sometimes, loan officers perform the role of salespeople. For example, commercial loan officers approach firms to find out the necessity of loans. In case the firm is on the lookout of new funds, the loan officer tries to persuade the firm to take loan from some chosen institution. Mortgage loan officers make a good rapport with residential and commercial real estate agencies. So, when an individual or a company purchases some property, the real estate agent directs them to the loan officer with whom they have a good relationship. Some loan officers are termed as loan underwriters. Their sole work is to analyze the client’s creditworthiness, conduct a financial analysis and other risk assessment.