Explain loan choices to an applicant
Ask what the applicant wants to borrow, then explain each loan type on offer and its repayment terms.
Career profile
Loan Officer
Loan officers guide people and businesses through applications, then judge whether each borrower can repay.
Between explaining a repayment schedule to one client and catching a missing financial record for the next, the work mixes conversation, careful judgment and sales.
A day in the life
Call about numbers that disagree
Check the application against the person's money records, and call to ask about figures that do not match.
Size up a borrower's credit
Read the applicant's credit history and finances to judge whether they can repay, then write your approval recommendation.
Find your next borrowers
In jobs with sales duties, you contact likely clients and build ties with referral sources.
Quick facts
Bachelor’s degree typical
United States
$76,690/year
United States · May 2025
1% projected growth
United States · 2025–2035
Quick orientation
Preparation, pay & outlook
Preparation
Bachelor’s degree typicalRelated work experience can sometimes substitute; employers also provide training.
Pay
$76,690/yearNational median, equivalent to $36.87/hour.
Outlook
1% projected growthAbout 17,100 openings annually, mostly to replace workers leaving the occupation.
Fit, tradeoffs & changing tools
You might like this if…
- You like explaining numbers in words someone else can use.
- You notice inconsistencies and want to check them.
- You are comfortable starting conversations with unfamiliar people.
Things to weigh
- Some jobs expect you to bring in borrowers as well as help them.
- Deadlines and customer complaints can interrupt concentrated work; some officers work beyond 40 hours a week.
Where AI may help
Software can assess financial information and recommend a loan decision. Some simple consumer loans already have fully automated underwriting.
What people still lead
You explain options, resolve questions, and review information that needs personal attention.
What we can’t predict yet
How much application review moves to software will vary with loan complexity and the lender’s methods.
Pay in context
Earnings
Check how much of an offer is fixed salary and how much depends on loans you bring in.
The national middle and spread
The median was $76,690 a year, or $36.87 an hour. The 10th and 90th percentile annual wages were $39,430 and $153,180. These describe the workforce, not starting and senior salaries.
Pay by employer industry
Annual medians were $106,000 at automobile dealers, $79,570 in management of companies and enterprises, and $76,070 in credit intermediation and related activities, which includes banks and mortgage companies.
Salary and commissions
Some employers pay a salary; others combine base pay with commissions. Bonuses may depend on loan volume or performance.
Openings despite slow growth
Employment is projected to grow 1% during 2025–35, with about 17,100 openings per year, mostly from replacement needs.
Getting started
Study business or finance
- What the route involves
- Complete a bachelor’s degree; learn to read financial statements.
- What it can lead to
- Meet the typical education expectation for loan-officer hiring.
Build related work experience
- What the route involves
- Gain experience in banking, customer service, or sales.
- What it can lead to
- Some employers accept this experience instead of a bachelor’s degree.
Employers set hiring requirements and loan-approval limits. Residential mortgage work also has the licensing or registration steps below.
After entry
Career paths
This starts where the entry routes leave off: early work, growing capability, and advancement or specialization. This path also has a credential or licensing boundary; see the requirements and limits.
Get established
Learn the lender’s products and procedures through employer training.
Handle harder applications
Build skill at resolving application questions with applicants and underwriters.
Specialize or lead
Move toward underwriting specialization or supervising loan staff.
Where you can work
Bank or credit-union consumer lending
Usually office-based. At some smaller institutions, officers perform underwriting themselves.
- Office
- Indoors
Mortgage lending
Referral relationships with real-estate firms matter. You may meet borrowers away from the office.
- Office
- Travel
Commercial lending
Business visits can be part of the week. Large loans may involve coordinating several banks.
- Office
- Travel
Try it
See whether the job clicks before you commit to the path.
Invent a small-business loan request with a loan amount, monthly sales, expenses, and existing debts. Write three questions you would ask before recommending approval, then explain why each answer matters. Notice whether you enjoy both checking the numbers and explaining your reasoning.
Stay safe: Use fictional information; this exercise cannot determine whether someone qualifies for a real loan.
Sources
- U.S. Bureau of Labor Statistics. Loan Officers — Occupational Outlook Handbook. Accessed 2026-10-03.
- O*NET OnLine. 13-2072.00 — Loan Officers. Accessed 2026-10-03.
- O*NET OnLine / U.S. Bureau of Labor Statistics. National Wages: 13-2072.00 — Loan Officers. Accessed 2026-10-03.
- Consumer Financial Protection Bureau. Secure and Fair Enforcement for Mortgage Licensing Act FAQs. Accessed 2026-10-03.
- Consumer Financial Protection Bureau. 12 CFR § 1008.105 — Minimum loan originator license requirements. Accessed 2026-10-03.
- Consumer Financial Protection Bureau. 12 CFR § 1007.103 — Registration of mortgage loan originators. Accessed 2026-10-03.