Loan Officer Career Advancement
- Its generally a lateral move from one shop to another based on compensation structure
- Other than going from say a junior loan officer to a senior loan officer
- Most LOs just switch companies to get better commissions
- Though it might be possible to open your own shop or become a sales manager as well
Loan officers generally stay in one place and dont advance internally within a company.
They may change their status to Senior Loan Officer, but usually it means very little aside from the fact that theyve been around a little longer than typical loan officers. There could be a bump in compensation levels though.
More likely, loan officers can advance externally if recruited by other companies paying higher commissions, or even a base salary. Or a mega bonus to jump ship.
Those who are able to create and manage a large book of business may wind up with a lot of suitors, and its not out of the realm of possibilities to be offered a six-figure bonus to change companies.
Many loan officers also apply for a brokers license as a means for advancement. And eventually employ their own loan officers, and take a cut off everything they earn.
In that sense, there are a variety of advancement opportunities for successful individuals. Its also possible to shift to the operations side of things if you turn out to be not much of a salesperson.
Raise Your Credit Score
Ben Reynolds, CEO and founder of Sure Dividend7, explains that if you have a low credit score, it signifies to lenders that youre a risk in paying the monthly mortgage bill … Be responsible for paying your bills on time. Maintaining on-time payments and working on paying off high-interest rate bills can help you build your credit back up.
James Surrey, founder and chief editor at Review Home Warranties8, tells us to try to increase your credit limit on more than one credit card. This is provided that you don’t have a recurring history of late payments. Having a large limit in relation to transactions and bill amount made on the card is an easy and fast way to raise the credit score by several points.
Enjoy Job Security In A Growing Market
One of the major benefits of becoming a MLO is job security. As a mortgage loan originator, you have an in-demand career. According to the Bureau of Labor Statistics, the employment of loan officers is projected to grow by 8% from 2014 to 2024. Imagine never having to worry about not finding another job or losing the one you have.
This kind of job security and growth is seriously enviable! Lucky you!
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Final Word On Loan Officers
To sum it up, loan officers have the potential to make more money than the majority of the population, including doctors and lawyers.
And even pro athletes if their careers are long enough, but financial situations will vary greatly based on sales performance.
The amount of time and work you put in is paramount, and you must be very driven to excel in the mortgage industry. It can be a very cut-throat field, filled with stress, deadlines, and missed opportunities.
After all, were talking about a lot of money and big life moments for the families taking out these loans. So its not to be taken lightly.
The job certainly isnt for everyone, but if you think youve got what it takes, it can be very fruitful and lead to other opportunities, such as being a broker, working with a large banking institution, or working in commercial real estate, just to name a few.
Always do plenty of research about the mortgage company or broker you decide to work for to ensure you know exactly how and what you will be paid, and what is expected of you. Good luck out there!
Mortgage Banker Salary Nyc
As of October 29, 2021, the average Mortgage Banker pay in New York, NY is $58,346 however, the salary range frequently ranges between $41,834 and $87,127. Salary ranges can vary greatly depending on a variety of things, including schooling, certifications, supplementary talents, and the number of years you have worked in your field.
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Save Often And Save Creatively
Jenifer Sapel, the founder of Utor Wealth12, also suggests that if you are looking to be a homeowner soon, do these two things: first, talk to a lender to get an idea of what loans, rates and payments look like. Secondly, start paying your mortgage now, before you have one, into a separate account designated to home savings.
For example, if you pay $1500/month in rent but expect your mortgage to be $2500/month, put the difference into a home savings account now so that you get a feel for the change in expenses you will be making.
Loan Officer Salary Can Vary Widely
- Similar to a real estate agents salary, a loan officers take home pay can range dramatically
- It all depends on how much you sell/close in a given year
- If youre a top loan officer, you can make a ton of money
- If youre just an average or underperforming LO, expect comparably lower salaries
Wondering how much a loan officer makes an hour? Or what the average mortgage loan officer salary is?
Well, take note that most loan officers do not receive a base salary, only commission, so they are paid for performance. Sales performance.
The median income for a loan officer in the United States was $63,650 in 2016, according to the Bureau of Labor Statistics . That works out to an hourly wage of $30.60 per hour, which isnt terrible by any stretch.
My assumption is that the number wont change a great deal in 2017 or beyond, not that I would focus on the numbers from the Bureau of Labor Statistics anyway.
A better gauge might be the quarterly reports from a company called LBA Ware, which has a ton of data on loan officer compensation.
They said the average LO produced 51% more in volume during Q3 2020 versus $1.7M per month in the same period in 2019.
And per-loan commission was 106 basis points in the third quarter of 2020, meaning the average LO made over $27,000 per month.
That works out to over $300,000 annually if theyre able to keep that up consistently.
If you break that down as an hourly wage, it could be very high if loan volume is solid and efficiency is high as well .
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The Bottom Line: Mortgage Loan Processors Help You Reach Closing Day
Just like underwriters and loan officers, mortgage processors are a crucial part of the mortgage process. Working with a mortgage processor can help you get everything in order for underwriting and keep your application on course for closing.
Ready to get your financing in order? Get approved now to start the process.
Get approved to buy a home.
Rocket Mortgage® lets you get to house hunting sooner.
Being A Loan Officer Can Be Really Lucrative
- There are few jobs other than doctors, lawyers, and sports stars
- That pay several hundred thousand dollars a year in salary
- Top loan officers have the potential to make that kind of money too
- And even average ones can make six-figures annually during good years
If a mortgage loan officer gets just one of those deals to go through, it often equates to a huge payday, sometimes as much as a few months salary working a minimum wage job or other lower paying jobs.
So thats the incentive, big money. But there are a number of questions you need to ask yourself before setting out in the mortgage industry as a loan officer.
First and foremost, it is not an easy job. Sure, a mortgage broker or bank may tell you that its simple. And yes, you may not have to work very hard in the traditional sense, or take part in any back-breaking work.
But factor in the stress, the near misses, lost deals, the shots to your ego, and the wheel-spinning and it isnt as effortless as they may make it out to be.
You will see deals fall through and you will waste a lot of time. You will have mental breakdowns as loans slip through your fingers, and brokers and real estate agents scream at you as deadlines close in.
You will undoubtedly make mistakes, which will require a phone call to the borrower to let them know you cant do the deal. It will be embarrassing and unpleasant.
All that aside, lets look at a loan officers typical day, not that any day is ever typical
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What’s The Average Salary Of A Loan Officer
Marcus Reeves is a writer, publisher, and journalist whose business and pop culture writings have appeared in several prominent publications, including The New York Times, The Washington Post, Rolling Stone, and the San Francisco Chronicle. He is an adjunct instructor of writing at New York University.
A loan officer represents a bank, , or other financial institution and finds and assists borrowers in acquiring loans. Loan officers can work with a wide variety of lending products for both consumers and businesses. They must have a comprehensive awareness of lending products and banking industry rules, regulations, and required documentation.
Loan officers review loan applications and analyze an applicant’s finances to determine who is eligible for a loan. They also educate consumers on loans, verify financial information, and contact individuals and companies to see if they apply for a loan.
Loan Officer Job Prospects
Because many different industries need loan officers, from real estate to banking, jobs are often available. However, according to the U.S. Bureau of Labor Statistics, the job market for loan officers will hold steady in the decade between 2020 to 2030. The BLS reports that approximately 25,000 openings for loan officers are projected each year, on average, over the decade.
These jobs will most likely occur because many loan officers may hit retirement age or leave the labor force for other reasons.
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What Is A Mortgage Loan Originator
A mortgage loan originator, or MLO, guides mortgage applicants and borrowers through the mortgage approval process, from preparing the loan application through closing. MLOs are licensed by state and national authorities, and they’re knowledgeable about all the different types of mortgages.
When you see the term “mortgage loan originator,” it can refer to a couple of different things. A company that does mortgage originations, like Rocket Mortgage®, is an MLO. A person who takes you through the process of originating a mortgage loan, from application to closing, is also an MLO.
People who are MLOs may work on behalf of a single company that originates mortgages, or they may be a mortgage broker who takes your application and works with one of several companies.
Since an MLO can be either a person or a company, it’s worth trying to understand their unique roles in helping you get a mortgage.
Financial Intermediation Might Not Even Be A Good Option
Unrelated to mortgages, the investment management industry has an interesting example of how getting rid of financial intermediation might be best for everyone. Index funds automatically track and invest in markets, as opposed to using the traditional model of human fund managers being paid to actively choose investments.
As a result, not only do index funds cost significantly less they usually outperform their human-managed counterparts, according to the SPIVA. In fact, this fund management strategy has been so successful that index funds have grown to account for 34% of market share.3
This example of index funds is a good reminder that consumers might benefit from other disintermediated financial services , as well.
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Thats Just One Benefit Of Becoming A Mlo Thats Right Becoming An Mlo Can Change Your Life In A Matter Of Months
Dont believe me, though. Listen to the smart people at Indeed.com and Payscale.com.
The average salary for loan originator ranges from approximately $80,727 per year for Loan Processor to $68,397 per year for Mortgage Loan Originator. source: Indeed.com
A Loan Originator earns an average salary of $43,638 per year. source: Payscale.com
What Is The Average Salary For A Loan Officer Assistant
There isn’t an average salary for a loan officer assistant, as it depends on too many factors from the company where the assistant is employed, if they work hourly or for an annual salary, and experience. According to the BLS, financial clerks who may do similar work as an assistant to a loan officer earn a median salary of $41,520.
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Well Fargo Private Mortgage Banker Salary
As of October 29, 2021, the average income for a Private Mortgage Banker at firms like Wells Fargo in the United States is $71,376. however, the range frequently ranges between $63,724 and $79,029. Salary ranges can vary greatly depending on a variety of significant aspects, such as schooling, certifications, and other talents.
Rocket Mortgage Banker Salary
The annual salary for a Rocket Companies Mortgage Banker in the United States is around $52,131. Which is 29% less than the national average.
Meanwhile, salary data is derived from 80 data points gathered directly from employees, users, and historical and present job adverts on Indeed during the last 36 months.
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Read On To Understand The Entire Salary Opportunity For Private Mortgage Banker At Firms Such As Wells Fargo
Salary for the Wells Fargo Private Mortgage Banker in the United States can range from $63,724 to $79,029 per year, with an average total cash compensation of $71,376.However, total compensation covers the amount of any benefits earned in addition to your income. As well as some of the most popular benefits included in a total compensation package, such as bonuses, commissions, paid time off, and insurance. However, the overall financial remuneration may fluctuate according to the industry, region, and other considerations.
Retail Mortgage Loan Officer
Experience completing mortgage loan applications. The ideal candidate will have experience managing different types of mortgages including Conventional,
Many Compensation options including full commission, salary + per file commission and Quarterly Bonus Incentives.
Estimated: $150,000 – $200,000 a yearQuick Apply
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Loan Processor Vs Loan Officer
A mortgage loan officer and a mortgage processor are often confused for the same position. However, its important to understand that they hold separate responsibilities in the loan application process. A mortgage loan officer is a licensed mortgage expert who helps navigate the borrower through the loan application process.
The loan officer will recommend the type of mortgage loan program that fits the borrowers financial needs. Once the borrower decides on the loan terms, type and size, the information goes to the mortgage processor, who then files the paperwork.
Basically, a mortgage processor acts as the go-between between the loan officer and the underwriter.
These three key positions work together when pushing a mortgage loan request through, each with a unique set of responsibilities.
Ask Yourself The Important Questions
Selita explains, before all the time to buy and ultimately purchase the home, ask yourself where you see yourself in 5 years. 10 years. Do you like the neighborhood, city, environment, etc.? Do you think you may move locations due to your employment at any time in the future? Do you have established roots in the community and family close by?
Mason Miranda, a credit industry specialist at Credit Card Insider13, adds to the list of questions above with the following prompts:
- How much money do you have saved up? Will you have anything left after the entire home buying process?
- How much mortgage can you afford?
- Does the location offer housing that you would enjoy within your budget?
- What are your spending habits and do you need to change them to afford a house?
- Do you have a budget in place to help keep track of spending and making mortgage payments?
- What do your credit reports and credit scores look like? Will they let you be approved and get a low interest rate on your mortgage?
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How Much Does A Loan Officer Make An Hour
- Some loan officers are paid hourly if they work at big retail banks
- And may not actually be paid on their loan volume
- But many loan officers are paid commission-only in lieu of a base salary
- Which you can break down into hourly wages at year-end
As noted, MLOs are typically not paid hourly, and are instead paid commission for the loans they bring in and fund.
This means total compensation can range significantly based on the sales performance of the loan officer in question. It also depends on how much a loan officer makes per loan.
If the LO works for a small shop and has very little support, they might make a mortgage point or two per loan. By that, I mean 1-2% of the loan amount, which may or may not be split with their broker or mortgage company.
On a $500,000 loan, were talking $5,000 $10,000, less any costs and splits. As you can see, the money can be really good if youre even mildly successful in this industry, especially if you operate in an expensive region of the country.
Conversely, those who work at big banks and credit unions and are essentially fed a constant stream of clients via walk-ins, incoming phone calls, and the like, may only receive a small commission relative to those going it alone.
However, this latter group might get a small base salary, along with benefits like 401k and insurance and so forth. And as noted, they get leads, which can be huge for the individual who is unable or unwilling to chase after new business.