Tuesday, April 16, 2013

Loan Officer

Loan Officer
By Michael McMinassian
            A loan officer is someone who works with individual and businesses to help facilitate the lending process.  Who will be acting as a liaison between the client and the bank.  The loan officer assist client in all the details necessary to complete the loan application process. The duty of a loan officer is to evaluate, authorize or recommend approval of loan applications for people and businesses (bls.gov). 
            A loan officer specializes in commercial, consumer or mortgage loans.  A commercial loan help companies buy new equipment and or expand operation.  A consumer loan includes home- equality, automobile and personal loans.  A mortgage loan is the purchase or refinance of real estates.  Loan officer normally works in commercial banks, credit union, mortgage companies or related financial institutions.  Most loan officers works full time hours.  Mortgage loan officer works long hours (bls.gov).  Consumer loan officer travels and visit clients.  There are local companies who have a loan officer and in the bigger companies there would be more than one loan officer. It mostly depends on how busy the office is and how many loans are written.
            Pay rates for a loan officer depends on the place of employment.  Some employers will pay by hourly rates, a flat salary and or commission. Commission rates are half a percent (.05%) to one percent (1%) of the loan amount (bls.gov). Loan officer can be a great part time job for people who want to have some side income or income that is extra. This position is a job that gives compensation on your productivity or by commission.
            To become a loan officer you must meet some requirements.  You must have a high school diploma and on the job training (bls.gov). By federal laws you must be license. The requirements   to obtain a state license include 20 hour courses, passing an exam, passing a background check, and must have no felony conviction.  You must fulfill a continued education requirement in order to maintain your licenses. However a commercial loan officer needs a bachelor degree in finances, business, economics and related fields (howstuffworks.com). 
            In conclusion the loan officer is an important part of the lending sector of the real estate market. This is not a glamorous position but is vital for the applicant who wants to purchase a home and the real-estate agent to be able to take that applicant to the home or the homes they qualify for. This way the applicant will have the opportunity of the American dream and be able to actually retain it. Once the applicant has chosen his or her house the rest of the process can go into effect such as placing the bid, appraising the home, inspecting the home, making the offer, and then finalizing the loan. After that there is the escrow process and then that would lead to the title office to finalize everything and hand the keys to the house to the applicant. It all was not possible without the loan officer.  
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