What does a Loan Originator do?
Learn all about Loan Originator duties, skills and much more. Get expert advice on how to become a Loan Originator.
Published 4 min read
A loan originator is a professional who helps borrowers obtain financing for their home purchase. The loan originator works with the borrower to complete the loan application and gather the necessary documentation. The loan originator also works with the lender to ensure that the loan is approved and that the terms of the loan are favorable to the borrower.
Loan Originator job duties include:
- Originate loans in accordance with established guidelines.
- Develop and maintain strong relationships with customers.
- Understand customer needs and recommend the best loan products to meet their needs.
- Gather and analyze customer financial information.
- Prepare loan application packages.
- Present loan applications to lending committees for approval.
- Negotiate loan terms and conditions with customers.
- Close loans and disburse funds.
- Monitor loans throughout the life of the loan.
Loan Originator Job Requirements
A loan originator is a professional who helps potential borrowers secure financing for their home. Loan originators must have a bachelor's degree in finance or a related field, and must be licensed by the state in which they operate. They must also have several years of experience in the mortgage industry.
Loan Originator Skills
- Analytical skills
- Profit and loss analysis
- Financial analysis
- Asset management
- Real estate
- Mortgage banking
- Loan servicing
- Loan Origination
- Financial modeling
- Credit analysis
How to become a Loan Originator
In order to become a loan originator, one must first complete the necessary education and obtain the required licenses. The education requirement for this position is a bachelor's degree in finance, accounting, or a related field. After completing the educational requirements, the next step is to obtain the required licenses. These licenses are typically obtained through the National Mortgage Licensing System (NMLS). The NMLS is a national database that provides information on mortgage loan originators and ensures they are properly licensed.
Once the educational and licensing requirements have been met, the next step is to find employment with a financial institution that offers loans. Loan originators typically work for banks, credit unions, or other lending institutions. They are responsible for evaluating loan applications and determining whether or not the applicant qualifies for a loan. They also provide guidance to borrowers on how to improve their chances of qualifying for a loan.
Loan originators must have strong communication and interpersonal skills in order to effectively interact with borrowers and lending institution staff. They must also be able to stay organized and keep track of multiple loan applications at one time. Strong math skills are also necessary in order to calculate interest rates and loan terms.
Those interested in becoming a loan originator can expect to earn a competitive salary and benefits package. The average salary for this position is $63,000 per year. Loan originators typically work full-time hours during regular business hours. Some may also be required to work evenings or weekends depending on the needs of their employer.
Related: Loan Originator Resume Example