What Does a Loan Officer Do?
A loan officer evaluates, authorizes, or recommends approval of loan applications for individuals and businesses. They guide borrowers through the lending process, from prequalification to closing, ensuring that applicants understand the terms, meet all necessary requirements, and are set up for success. Loan officers work in banks, credit unions, mortgage companies, and financial institutions, helping clients choose the best lending product for their unique needs and financial situations.
These professionals assess creditworthiness by reviewing credit reports, income documentation, collateral, and risk profiles. Depending on the type of loan (consumer, mortgage, auto, or commercial), they may also coordinate appraisals, verify employment, calculate debt-to-income ratios, and liaise with underwriting and compliance teams. Loan officers must be detail-oriented, financially savvy, and excellent communicators with a customer-first mindset.
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Loan Officer Core Responsibilities
- Evaluate loan applications and assess borrowers’ financial health
- Collect and review documentation such as credit reports, pay stubs, and tax returns
- Recommend loan terms and ensure applicants meet lending criteria
- Educate borrowers on loan options, rates, terms, and repayment requirements
- Submit complete applications to underwriting and follow through to closing
- Maintain compliance with lending regulations and internal policies
- Cultivate relationships with clients, realtors, or business partners
- Meet or exceed production and quality goals
Required Skills and Qualifications
Hard skills
- Proficiency with loan origination systems (e.g., Encompass, Calyx, MeridianLink)
- Understanding of lending guidelines and regulatory compliance (TILA, RESPA, HMDA)
- Credit analysis and financial documentation review
- CRM system knowledge and digital workflow tools
Soft skills
- Clear communication with clients and internal teams
- Attention to detail and strong organizational habits
- Customer service orientation and problem-solving mindset
- Sales aptitude and relationship-building skills
Education
- Bachelor’s degree in finance, business administration, or a related field preferred
- Equivalent experience may be accepted in place of a degree
Certifications
- Mortgage Loan Originator (MLO) license via NMLS – required for residential mortgage loan officers
- Notary Public – may be preferred for some roles
Preferred Qualifications
- 2+ years of experience in consumer, mortgage, or commercial lending
- Existing book of business or referral network
- Bilingual skills may be beneficial for diverse client populations
National Average Salary
Loan officer salaries vary by experience, industry, organization size, and geography. Click below to explore salaries by local market.
The average national salary for a Position is:
$123,456
Sample Job Description Templates for Loan Officers
Mortgage Loan Officer
Position Overview
We are hiring a Mortgage Loan Officer to originate residential mortgage loans and guide clients through the home financing process. This role requires in-depth knowledge of mortgage products and a strong ability to build trust with homebuyers, realtors, and referral partners.
Responsibilities
- Assist borrowers with mortgage prequalification and application
- Evaluate credit, income, and assets to determine loan eligibility
- Recommend loan programs and explain terms, rates, and closing costs
- Submit complete loan packages to underwriting and follow through to closing
- Build and maintain a network of real estate agents, builders, and financial professionals
- Ensure compliance with federal and state lending regulations (e.g., TILA, RESPA, HMDA)
Requirements
Hard skills
- Proficiency with loan origination systems (e.g., Encompass, Calyx)
- Knowledge of FHA, VA, USDA, and conventional loan guidelines
- Understanding of credit scoring, DTI ratios, and mortgage documentation
Soft skills
- Strong interpersonal and consultative sales skills
- Attention to detail throughout the application process
- Ability to work independently and manage a pipeline
Education
- Bachelor’s degree preferred or equivalent experience in mortgage lending
Certifications
- Active NMLS Mortgage Loan Originator license (required)
Preferred Qualifications
- 2+ years of mortgage origination experience
- Existing referral network
Commercial Loan Officer
Position Overview
We are seeking a Commercial Loan Officer to originate, evaluate, and manage business lending relationships. This role focuses on structuring loans for small and mid-sized businesses while ensuring risk alignment and regulatory compliance.
Responsibilities
- Source and evaluate commercial lending opportunities
- Analyze financial statements, cash flow, and collateral
- Structure loan terms for lines of credit, equipment financing, or real estate
- Present credit memos to underwriting or loan committees
- Manage borrower relationships and monitor portfolio performance
- Collaborate with credit analysts, legal teams, and senior management
Requirements
Hard skills
- Commercial credit analysis and financial modeling
- Knowledge of CRE, C&I, SBA, and term loan structures
- Familiarity with credit policy, loan risk ratings, and portfolio management tools
Soft skills
- Strategic relationship development
- Confidence in client negotiations
- Analytical mindset with sound judgment
Education
- Bachelor’s in finance, accounting, or economics
Certifications
- Not required; formal credit training preferred
Preferred Qualifications
- 3+ years of commercial lending experience
- Familiarity with local business networks and industries
Consumer Loan Officer
Position Overview
We are hiring a Consumer Loan Officer to evaluate and originate personal loans, lines of credit, and home equity products for individual borrowers. This role requires excellent customer service skills and the ability to assess risk within defined credit policies.
Responsibilities
- Interview applicants and evaluate credit applications
- Recommend consumer loan products based on borrower needs
- Process personal, unsecured, and secured loan applications
- Ensure accuracy of documentation and compliance with regulations
- Assist with cross-selling bank products such as checking or credit cards
- Maintain knowledge of lending guidelines and internal policies
Requirements
Hard skills
- Understanding of credit scores, income verification, and loan processing
- Experience with consumer loan origination systems
- Familiarity with lending regulations and privacy standards
Soft skills
- Personable and service-oriented communication
- Attention to accuracy and regulatory details
- Team collaboration with branch or call center staff
Education
- High school diploma required; bachelor’s degree preferred
Certifications
- Not required
Preferred Qualifications
- 1–2 years of experience in consumer banking or loan origination
Auto Loan Officer
Position Overview
We are hiring an Auto Loan Officer to facilitate vehicle financing for individual consumers through direct or indirect lending channels. This role involves assessing borrower qualifications and working with dealerships, loan platforms, or internal banking systems.
Responsibilities
- Review applications for new and used vehicle loans
- Verify income, credit, and collateral documentation
- Communicate loan decisions and terms to borrowers or dealerships
- Collaborate with underwriting to resolve exceptions or documentation issues
- Maintain up-to-date knowledge of auto loan rates, terms, and products
- Ensure compliance with lending and fair credit regulations
Requirements
Hard skills
- Knowledge of auto lending guidelines and credit criteria
- Familiarity with indirect lending portals (e.g., Dealertrack, RouteOne)
- Proficiency in loan origination or banking software
Soft skills
- Strong relationship-building with clients and dealerships
- Clear verbal and written communication
- Fast, detail-oriented decision-making
Education
- High school diploma required; associate’s or bachelor’s degree preferred
Certifications
- Not required
Preferred Qualifications
- 2+ years of experience in auto finance or consumer lending
SBA Loan Officer
Position Overview
We’re seeking an SBA Loan Officer to originate, package, and manage small business loans under the Small Business Administration (SBA) loan programs. This role is responsible for navigating complex borrower needs and aligning them with government-backed funding options.
Responsibilities
- Evaluate eligibility for SBA 7(a), 504, and Express loan programs
- Collect and review financials, business plans, and collateral documentation
- Package loans for submission to underwriting and SBA review
- Communicate with borrowers and internal partners throughout the loan process
- Maintain compliance with SBA guidelines and documentation standards
- Support portfolio monitoring and renewals post-funding
Requirements
Hard skills
- Knowledge of SBA SOPs, eligibility rules, and loan packaging standards
- Experience preparing SBA loan applications and documentation
- Familiarity with E-Tran and SBA One systems
Soft skills
- Analytical and deadline-driven
- Strong communication with small business owners
- Detail-oriented compliance and recordkeeping
Education
- Bachelor’s degree in finance, accounting, or business
Certifications
- Not required; SBA or commercial credit training preferred
Preferred Qualifications
- 2–4 years of experience with SBA or commercial lending programs