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How to Become a Loan Officer


So, are you interested in learning about how to become a loan officer, or have you, perhaps, stumbled upon this article by accident? Whatever the case may be, in this article, you will find out everything that it takes to become a loan officer. Basically, when it comes to loan officers, these professionals play a very important part in helping buyers find different thighs that are right for them and the situation that they are in financially. That is by no means an easy task, but in order for you to understand this better, we have listed the most important things that you need to know about to become a loan officer yourself.

1.Getting your bachelor’s degree

Although it’s not always necessary to have a bachelor’s degree to become a loan officer (you need at least a high school diploma), many advanced positions such as commercial loan officers require a bachelor’s degree in business, economics, finance, or other related fields. That said, pursuing a degree in one of these fields can prepare a commercial loan officer for many important tasks that you are going to face during your work, so it will greatly help if you were trained to do so. Suppose you do pursue college studies to become a loan officer. In that case, you are going to be trained for accounting, mathematics, finance, economic statistics, and business statistics work relevant to the line of work.

2.Getting your license 

So, this is probably the most important step since if you want to be a loan officer, regardless of your background.  You need to have a license. But don’t worry, this isn’t administratively exhausting, and as experts on this topic from explain, the whole procedure takes around a couple of months. In order to get one, though, that entire process consists of undergoing mandatory education classes, passing examinations, and having high enough credit scores. Don’t worry, though – if you have followed through with all the previous steps, and this is just another step that will take you closer to your goal.

3.Work experience is the next step

Now, as with any other line of work, if you decide to pursue becoming a loan officer, many employers will prefer hiring an employee with previous experience. This is especially important for those that don’t have a bachelor’s degree and are seeking employment right after high school. But don’t worry – it isn’t all that hard to acquire work experience since you can establish yourself in the field by seeking employment in a variety of different positions, including customer service, banking, and sales.

4.On the job training is pretty important

This step is heavily connected to the last one, and it’s pretty important, regardless of what degree you have. Naturally, the type of training received can vary depending on the work setting, but anything that is relevant to loan officer work will suffice. So, whether you have experience in informal training and company-sponsored training or with specific software – it is going to help with the possibility of you getting employed.

5.How to become certified

This is it – the last step. You should know that certification is not really a requirement for loan officers. Still, by obtaining your certification, the probability is high that it will greatly improve your employment prospects. The Mortgage Bankers Association (MBA) and the American Bankers Association (ABA) offer a lot more different opportunities for those that have become certified, so be sure to do so!

Certifications that are offered by the American Bankers Association are usually renewed every three years. The renewal process varies depending on the field of work. The re-certification may include completing continuing education credits, paying an annual fee, or adhering to the Institute of Certified Bankers’ Professional Code of Ethics.

On the other hand, CMB designations that are offered by the MBA need to be renewed every two years. In this case, you need to earn five points by continuing education activities in order to maintain your certification. This can easily be accomplished by completing coursework that is offered by the MBA, as well as by participating on committees or attending different relevant conferences and conventions.

To sum things up

In the end, when it comes to loan officers, choosing to pursue this career entirely depends on your interests as well as your commitment to becoming one since the road to it is pretty clear. But if that is your goal, there definitely are some things that are going to help you reach it. And by reading this article, you are one step closer to that, so, that being said – continue to pursue it, reflect and act on steps mentioned in this article, and surely, you are going to get there.

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