Top Skills for This Career
BLS identifies these as the three highest-rated skills for this detailed occupation. TrustInEd adds the plain-language explanations so visitors understand what each skill means.
Identifying problems, considering possible solutions, and choosing appropriate actions.
Understanding customer needs and providing helpful, professional service.
Adjusting effectively when priorities, conditions, tools, or expectations change.
How Do You Prepare for This Career?
BLS describes the typical preparation for this occupation. Requirements can vary by employer, state, licensing rules and individual circumstances.
How to Become One
How to Become a Loan Officer Loan officers must pay attention to detail, as each piece of information on an application can have a major effect on the profitability of a loan. Loan officers typically need a bachelor’s degree and on-the-job
Education
Loan officers typically need a bachelor’s degree, usually in a field such as business or finance. Because commercial loan officers analyze the finances of businesses applying for credit, they need to understand general business accounting, including how to read financial statements. Some jobseekers may be able to enter the occupation without a bachelor’s degree if they have related work experience, such as in banking, customer service, or sales. Organizations that specialize in certain fields typically prefer to hire candidates who have some experience in those areas. For example, mortgage companies may prefer to hire candidates with residential mortgage or real estate experience. Training Once hired, loan officers typically receive some on-the-job training. This may be a combination of formal, company-sponsored training and informal training during the first few months on the job.
Training
. Mortgage loan officers must be licensed.
Licenses, Certifications & Registrations
Mortgage loan officers must have a Mortgage Loan Originator (MLO) license. To become licensed, they must complete prelicensing courses, pass a national exam, and submit to background and credit checks. Licenses must be renewed annually, and individual states may have additional requirements. Information on state licensing board requirements is available from CareerOneStop. Although not required, certification shows dedication and expertise and thus may enhance a candidate’s employment opportunities. Information on certifications is available from CareerOneStop.
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Pay
the median annual wage for all workers was $50,980.
Job Outlook
Job Outlook Employment of loan officers is projected to show little or no change from 2025 to 2035. Despite limited employment growth, about 17,100 openings for loan officers are projected each year, on average, over the decade. Most of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire. Employment Demand for loan officers is expected as both businesses and individuals seek credit to finance commercial investments and personal spending. Loan officers will be needed to evaluate the creditworthiness of applicants and determine the likelihood that loans will be paid back in full and on time. However, the decline of bank branches and the increased use of productivity-enhancing technology in loan processing are expected to slow employment growth. Loan Officers Percent change in employment, projected 2025–35 Financial specialists 4% Total, all occupations 3% Loan officers 1% Note: All Occupations includes all occupations in the U.S. Economy.
What They Do
What Loan Officers Do
Loan officers evaluate, authorize, or recommend approval of applications for personal and business loans.
Duties
Loan officers typically do the following:
- Contact businesses or people to ask if they need a loan
- Talk with loan applicants to gather information and answer questions
- Explain to applicants the different types of loans and the terms of each type
- Obtain, verify, and analyze applicants’ financial information, such as credit rating and income
- Review loan agreements to ensure that they comply with federal and state regulations
- Approve loan applications or refer them to management for a decision
Loan officers use a process called underwriting to assess whether applicants qualify for loans. After collecting and verifying all the required financial documents, loan officers evaluate the information to determine an applicant’s need for a loan and ability to repay it. Most firms use underwriting software, which produces a loan recommendation based on the applicant’s financial status. Loan officers review the software output together with the evaluation of an applicant’s financial information to make a final decision.
The work of loan officers has customer-service and sales components. For example, loan officers often answer questions and guide customers through the application process. In addition, many loan officers market the products and services of their lending institution and actively solicit new business.
The following are common types of loan officers:
Commercial loan officers specialize in loans to businesses, which often use the loans to buy supplies and to upgrade or expand operations. Commercial loans frequently are larger and more complicated than other types of loans. Some commercial loans are so large and complex that no single bank will provide the entire amount requested. In such cases, loan officers may have to work with multiple banks to put together a package of loans.
Consumer loan officers specialize in loans to people for a variety of uses, such as buying a car or paying college tuition. For simple consumer loans, the underwriting process may be fully automated. However, the loan officer still guides applicants through the process. Some institutions—usually small banks and credit unions—rely on loan officers to complete the underwriting process instead of using underwriting software.
Mortgage loan officers specialize in loans that are used to buy real estate (property and buildings). Mortgage loan officers work on loans for both business and residential purchases. Often, these officers seek out clients, which requires them to develop relationships with real estate companies and other sources that can refer prospective borrowers.
Within these three fields, some loan officers specialize in a particular part of the loan process:
Loan collection officers contact borrowers who fail to make payments. They work with borrowers to help them find a way to keep paying off the loan. If the borrower continues to miss payments on secured loans—those involving collateral, such as a home or a car, that the borrower uses to secure the loan—these officers start the process of taking away the asset and selling it to repay the loan.
Loan underwriters specialize in evaluating whether a client is creditworthy. Underwriters collect, verify, and evaluate the financial information that clients provide on their loan applications and then use loan underwriting software to produce recommendations.
Work Environment
Work Environment
Loan officers held about 283,000 jobs in 2025. The largest employers of loan officers were as follows:
| Credit intermediation and related activities | 80% |
| Management of companies and enterprises | 4 |
| Automobile dealers | 4 |
The credit intermediation industry includes commercial banks, savings institutions, and mortgage companies.
Loan officers who specialize in consumer loans usually work in offices. Mortgage and commercial loan officers may work outside the office and meet with clients at their homes or businesses.
Work Schedules
Most loan officers work full time, and some work more than 40 hours per week.
Important Qualities
The following are examples of qualities that are important for these workers to perform their duties. For more information, visit the Employment Projections (EP) skills data page. Decision-making skills. Loan officers must assess an applicant’s financial information and decide whether to approve the loan. Detail oriented. Information on an application affects the potential profitability of a loan, so loan officers must pay attention to details. Initiative. Loan officers may act as salespeople in promoting their lending institution, so they must contact people and businesses to determine their need for a loan. Interpersonal skills. Loan officers must be able to guide customers through the application process and answer their questions.
More Information
More Information, Including Links to O*NET
Learn more about loan officers by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.
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Start with ED →Career data and occupational profile text are sourced from the U.S. Bureau of Labor Statistics Occupational Outlook Handbook and Employment Projections program. Education requirements are typical entry-level requirements and may vary by employer, state, occupation or individual circumstance. View the official BLS profile.