How to Become a Loan Officer
Loan officers work for various financial institutions with the primary aim to counsel individuals and businesses and authorize approval of loan applications. Loan officers are basically viewed as middle men between lenders and borrowers.
To become a loan officer, one needs to have good understanding of all the financial terms and must be able to apply them in practical world. So the work requires complete dedication as one is acting as a representative of the bank.
Instructions
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To being with, the position requires a relevant degree, preferably in economics, finance or any related field. This is your first step in making a career out of it, as financial houses will prefer applicants who have some pre-hand knowledge. If you have attained a degree in any other field, and then decide to shift, the process will take some adjusting. All will depend on your ability, communication skills and the desire to do well. Work experience will also count in your favour. Moreover, one needs to become adept at using computer-related software.
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For fresh graduates, your next task is to gain as much experience as possible. That will come when you join a bank or any lending institution as an intern or as a full-time employee. Most organizations also provide on-job training.
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Having discovered your desired avenue, your main aim should be to specialize in a specific lending category. Loans officers tend to focus on three broad types, which include consumer loans, mortgage loans and commercial loans.
The first one is intended only for individuals, where people want money to buy a vehicle or to pay out their tuition fees. Here the work of the loan officer is to guide the applicants and cater to their needs if a problem arises. Mortgage Loans are used to buy real state property and the loan officer helps out the borrower in getting a fair deal, keeping his bank in the loop.
As for commercial loans, which cater to businesses, the loan officer will need to have a clear idea about the financial situation of the company. In some cases, where the loan amount is considerably large, the officer needs to work with multiple banks. -
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Keep in touch with all the happenings in your area. Attending community gatherings will make you prominent. Indulge in a conversation to find out what young families are looking for. In other cases, develop a working relationship with real estate builders.
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Continue to improve. Take up certain courses which you feel will help you enrich your skill set, putting you in a better position to move the hierarchy. Also keep an eye on state laws.
