How to become a Loan Officer
Official title: Loan Officers
Also called: Commercial Banker, Commercial Loan Officer, Corporate Banking Officer, Financial Aid Advisor, Financial Aid Counselor, Financial Aid Officer, Financial Counselor, Loan Counselor, Loan Officer, Mortgage Loan Officer
Evaluate, authorize, or recommend approval of commercial, real estate, or credit loans. Advise borrowers on financial status and payment methods. Includes mortgage loan officers and agents, collection analysts, loan servicing officers, loan underwriters, and payday loan officers.
Main tasks
- Meet with applicants to obtain information for loan applications and to answer questions about the process.
- Analyze applicants' financial status, credit, and property evaluations to determine feasibility of granting loans.
- Approve loans within specified limits, and refer loan applications outside those limits to management for approval.
- Explain to customers the different types of loans and credit options that are available, as well as the terms of those services.
- Submit applications to credit analysts for verification and recommendation.
- Review loan agreements to ensure that they are complete and accurate according to policy.
- Review and update credit and loan files.
- Obtain and compile copies of loan applicants' credit histories, corporate financial statements, and other financial information.
How to become one
Loan officers typically need a bachelor's degree and on-the-job training. Mortgage loan officers must be licensed.
Typical education to start: Bachelor's degree
Read the full guide from the U.S. Bureau of Labor Statistics
Ways in
- Apprenticeship: Loan Officer (Nof).
- College: Business & Commerce degrees, Offered by 35 universities in the US
- Licence: A licence is required in 26 states.
Pay · Outlook · AI and this job
- Median pay: $76,690 a year The middle half earn $52,730 to $104,080.
- About 283,000 people work in this job now, and about 286,000 are projected by 2035. (+1.1%)
- People already use generative AI for some of this work. Microsoft Research rates its AI applicability as medium.
Related jobs
- Credit Counselors
- Financial and Investment Analysts
- Accountants and Auditors
- Appraisers of Personal and Business Property
- Appraisers and Assessors of Real Estate
- Budget Analysts
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Questions people ask
How do I become a Loan Officer?
Loan officers typically need a bachelor's degree and on-the-job training. Mortgage loan officers must be licensed.
How much does a Loan Officer earn in the US?
Median full-time pay is $76,690 a year (U.S. Bureau of Labor Statistics). The middle half earn $52,730 to $104,080.
Is a Loan Officer a growing career in the US?
Employment is projected to stay about the same by 2035: about 283,000 people now and 286,000 later (U.S. Bureau of Labor Statistics).
Do you need a degree to become a Loan Officer?
Not always. 54% of people in this job hold a bachelor's degree or higher. Ways in include: Business & Commerce degrees; Loan Officer (Nof).
Will AI change the work of a Loan Officer?
People already use generative AI for some of this work. Microsoft Research rates its AI applicability as medium.
Sources
- Microsoft Research: Working with AI: AI applicability by occupation (2025-12-22 (built on O*NET 29.0)), CC BY 4.0, retrieved 2026-10-03
- U.S. Bureau of Labor Statistics: Employment Projections (2025-35 (released 2026-08-27)), Public domain (BLS), retrieved 2026-10-03
- U.S. Bureau of Labor Statistics: Occupational Outlook Handbook (2025-35 edition (published 2026-08-27)), Public domain (BLS); photographs excluded, retrieved 2026-10-03
- U.S. Bureau of Labor Statistics: Occupational Employment and Wage Statistics (May 2025), Public domain (BLS), retrieved 2026-10-03
Updated 2026-10-03
This page includes information from the O*NET 31.0 Database by the U.S. Department of Labor, Employment and Training Administration (USDOL/ETA). Used under the CC BY 4.0 license. O*NET is a trademark of USDOL/ETA.