Loan Officer Salary: Average Annual Salaries (Updated!)

Loan Officer Salary

Loan officers operate in banks, credit unions, or other financial institutions, supporting customers in applying for loans and analyzing their creditworthiness through a process known as underwriting, in which they agree to take on financial risk in exchange for a fee. They assess the type and quantity of loan that is best suited to the demands of their consumers. Discover the salary of a Loan Officer in different cities as well as that of a mortgage loan officer.

What Is a Loan Officer?

A loan officer is a bank, credit union, or another financial institution official who assists borrowers with the application process. Because mortgage loans are the most complex and expensive type of loan that most consumers face, loan officers are frequently referred to as mortgage loan officers. Most loan officers, on the other hand, help consumers and small business owners with a wide range of secured and unsecured loans.

Loan officers must be well-versed in lending products, banking sector norms and regulations, and the documentation required to acquire a loan.

What a Loan Officer Does

Most borrowers who seek for a loan from a financial institution will have direct interaction with the loan officer. The entire procedure can be completed online, but most customers will likely prefer to speak with a knowledgeable human on the other end of what is, after all, a costly and difficult transaction. In fact, one of the reasons banks continue to operate so many branch locations is that they need to put loan officers in front of potential borrowers.


  • A loan officer aids individuals and businesses in selecting and applying for loan products.
  • This person is the primary point of contact with the financial institution during the loan closing process.
  • Most loans necessitate a mountain of paperwork, with mortgages being the worst offenders.

Loan officers often focus on one of three categories of lending: commercial, consumer, or mortgage. The extension of loans to firms is known as commercial lending. Personal loans, student loans, home equity loans, and auto loans are all examples of consumer lending. Loans for the acquisition of a real estate by individuals (a business would generally be treated by a commercial loan officer, even for real estate purchases) or refinancing of existing mortgages are examples of mortgage lending.

What is the Average Salary for a Loan Officer?

The average annual salary for a Loan Officer in the United States is $68,937 per year as of September 22, 2021.

In case you need a quick salary calculator, that works out to about $33.14 per hour. This equates to $1,326 each week or $5,745 per month.

While ZipRecruiter reports yearly earnings as high as $149,500 and as low as $17,500, the bulk of Loan Officer salaries now range from $35,000 (25th percentile) to $100,000 (75th percentile), with top earners (90th percentile) earning $112,000 per year across the United States. The average pay range for a Loan Officer varies substantially (up to $65,000), implying that there may be several prospects for development and greater pay based on skill level, location, and years of experience. Loan Officer salaries in California are the highest in the US, ranking first out of 50 states.

ZipRecruiter regularly checks its database of millions of active jobs advertised locally across America to generate the most accurate annual salary range for Loan Officer jobs.

Advantages of a Loan Officer

The majority of full-time loan officers receive basic benefits such as health insurance, vacation time, and access to retirement accounts. Because the majority of loan officers work for a bank or a private enterprise, their perks differ based on their employer.

Top Highest Salary Paying Cities for Loan officer Jobs

We’ve identified ten cities where the typical salary for a Loan Officer job is higher than the national average. San Jose, CA is at the top of the list, followed by Oakland, CA and Tanaina, AK in second and third place, respectively. Tanaina, AK outperforms the national average by $13,397 (19.4 percent), while San Jose, CA outperforms the national average by another $14,688 (21.3 percent).

Importantly, the Loan Officer job market in San Jose, CA is relatively active, with only a few organizations presently hiring for this position.

With average salary higher than the national average in these ten cities, the chances for economic progress by shifting locales as a Loan Officer appear to be extremely profitable.

Finally, another issue to consider is that the average salary in these top ten locations differs just by 4% between San Jose, CA, and Concord, CA, emphasizing the restricted opportunity for wage growth. When considering location and salary for a Loan Officer career, the possibility of a cheaper cost of living may be the most important element to consider.

CityAnnual SalaryMonthly PayWeekly PayHourly Wage
San Jose, CA$83,625$6,969$1,608$40.20
Oakland, CA$82,674$6,889$1,590$39.75
Tanaina, AK$82,335$6,861$1,583$39.58
Wasilla, AK$82,334$6,861$1,583$39.58
Hayward, CA$80,942$6,745$1,557$38.91
Jackson, WY$80,855$6,738$1,555$38.87
Norwalk, CT$80,643$6,720$1,551$38.77
Seattle, WA$80,385$6,699$1,546$38.65
Vallejo, CA$80,365$6,697$1,545$38.64
Concord, CA$80,195$6,683$1,542$38.56

Top 5 Highest-paying Loan Officer Jobs in the United States

We discovered at least five positions in the Loan Officer job category that pay more per year than the average Loan Officer salary. Senior Commercial Loan Officer, Senior Loan Officer, and Locum Tenens Mortgage Loan Officer are a few examples of these positions with a higher salaries.
Importantly, all of these occupations pay between $25,457 (36.9%) and $59,063 (85.7%) more than the national average Loan Officer salary of $68,937. If you are qualified, being recruited for one of these related Loan Officer positions like a mortgage loan officer may enable you to earn more salary than the average Loan Officer position.

Job TitleAnnual SalaryMonthly PayWeekly PayHourly Wage
Senior Commercial Loan Officer$128,000$10,667$2,462$61.54
Senior Loan Officer$108,945$9,079$2,095$52.38
Locum Tenens Mortgage Loan Officer$98,418$8,202$1,893$47.32
Work From Home Hard Money Loan Officer$95,738$7,978$1,841$46.03
Commercial Loan Officer$94,394$7,866$1,815$45.38

Mortgage Loan Officer Salary

A mortgage loan officer’s average salary is roughly $73,756.

Agricultural Loan Officer Salary

An agricultural loan officer’s average salary is around $68,633.7.

Average Salary for a Loan Officer Assistant

There is no average salary for a loan officer assistant because it varies on too many aspects such as the company where the assistant works, whether they work hourly or for an annual salary, and experience. Financial clerks who work as an assistant to a loan officer make a median salary of $41,520.8 per year, according to the BLS.

Comparing the Salary Similar Positions as Loan Officer

If you want to be a loan officer, look at the following jobs, along with their median yearly salary:

Loan officers’ jobs are similar to those of loan processors, mortgage loan originators, and underwriters.

#1. Loan Processors

A loan processor earns a base salary of $53,934 per year plus benefits. Loan processors, like loan officers, work for banks, mortgage lenders, and other loan institutions.

#2. Mortgage Loan Originators

The salary for this job is slightly higher than that of a loan processor. The national average salary is roughly $75,000 per year. A mortgage loan originator works in the real estate sector and may receive a commission depending on a few criteria, such as the company where they work.

#3. Insurance Underwriters

According to the BLS, the average salary for an underwriter in May 2020 is $71,790, with experienced insurance underwriters earning up to $129,550.

Other similar positions include:

The Bureau of Labor Statistics in the United States is the source of this information.

Job Prospects in

According to the U.S. Bureau of Labor Statistics, employment of loan officers is predicted to expand 11 percent through 2026, faster than the average for all occupations. Although the demand for loan officers will rise as the economy expands, the loss of bank branches may limit job development.

Workplace Environment

A consumer loan officer is most likely to work from a permanent location, such as a bank branch or office, during specified hours. A commercial or mortgage loan officer is frequently required to work flexible hours in order to meet with clients at their places of work or residence, and so spend significant time away from the office and on the road.

Work Schedule

The majority of persons who work as loan officers work a regular 40-hour week. Commercial or mortgage loan officer hours, on the other hand, vary since they may need to travel to customer locations, which may necessitate working at unusual hours.

How to Land a Job as a Loan Officer

#1. Apply

Examine well-known job boards such as iHireBanking, Glassdoor, and ZipRecruiter. In addition, examine the websites of local financial institutions to learn about their career options.

#2. Network

Join an association like the National Association of Mortgage Brokers (NAMB) or the American Bankers Association (ABA) to network with other industry professionals and remain up to date on industry trends. Membership in these organizations may also result in job prospects.

Duties and Responsibilities of a Loan Officer

This job often necessitates the ability to perform the following tasks:

  • Meet with loan applicants to collect personal information and answer questions in order to assess their loan application and risk.
  • Explain to applicants the many types and terms of each loan so that they can choose the best loan for their unique circumstances.
  • Keep track of and keep loan and credit information.
  • Contact companies and individuals to find new clients.
  • Work with current clients to deepen relationships, generate recommendations, and improve your reputation among other loan seekers.
  • Work with debtors who are late on their loan payments.
  • To make suggestions to customers, use loan underwriting software.

The bulk of loan officer professions mix sales and analytic duties, with the goal of selling loans while selecting appropriate clients and terms. Some professions are primarily concerned with analytics, with minimal sales component and little client contact. Loan underwriters are a term used to describe those who work in this field.

Other positions concentrate on assisting clients who are having difficulty making payments. A loan collection officer, for example, may try to reach settlements with distressed borrowers by altering repayment terms.

Loan officers evaluate loan applicant’s creditworthiness by examining their appropriateness as borrowers as well as the specific terms of the loan, such as interest rate and repayment schedule, on which credit may be granted. A loan officer may be expected to actively seek out clients, rather than passively waiting for candidates to approach their business for credit, depending on their position.

Education, Training, and Certification

This occupation necessitates the following degrees, experience, and licenses:


Generally, a bachelor’s degree in an area such as business or finance is required. Finance, accounting, and economics may be covered in class. Depending on the organization, a master’s degree can make you a more attractive prospect for employment. In addition, as a commercial loan officer, you will need to assess the financials of businesses seeking financing. As a result, this function necessitates a thorough understanding of conventional business accounting, including the ability to read financial accounts.


Most loan officer roles do not necessitate any formal certification or licensing. Mortgage lending, on the other hand, is a prominent exception. Most states regulate this industry, particularly positions in mortgage banks or mortgage brokerages as opposed to traditional banks or credit unions. Applicants must complete at least 20 hours of training, pass a test, and submit to background and credit checks in order to earn a mortgage loan originator (MLO) license.

The American Bankers Association and the Mortgage Bankers Association, as well as a variety of schools, provide loan officers with courses, training programs, and certifications. Although not needed, certification demonstrates devotion and skill and may improve a candidate’s chances of landing a job.


Loan officers typically undergo some on-the-job training. This could include both formal, company-sponsored training and informal training over the first few months on the job.

Loan Officer Competencies and Skills

This position typically necessitates the following skills:

  • Understanding quantitative and numerical facts, which is necessary when working with numbers to determine a loan.
  • A good judge of character is capable of making correct judgements about people, particularly their credibility and dependability, when deciding on a loan.
  • Cultivating and deepening current client relationships, as well as selling loans to new consumers, require interpersonal skills.
  • Verbal and textual communication: Explaining loans to consumers so that they fully comprehend the terms.
  • Working alone if you have a high degree of professional autonomy
  • Decision-making abilities include evaluating a customer’s loan application and deciding whether or not to grant them a loan.
  • Mental fortitude: Rejecting loan applicants who do not match the lending criteria of the institution or dealing with clients who are unable to repay their loans as agreed.

Functions of a Loan Officer

While all loan officers must be certified, part of the attractiveness of this job is that it pays well without requiring a professional degree. However, it is not a job for everyone.

#1. Duties of a Loan Officer

A loan officer’s duties include visiting loan applicants and completing a large amount of documentation, particularly for mortgages. Loan officers must also have extensive industry expertise and great customer service skills. A loan officer is licensed by the appropriate federal and state authorities and follows the lending process’s regulations. When working with you, a loan officer will bring their knowledge to the table.

Loan officers are well-versed in the various sorts of loans that a lender may provide, and they can advise you on the best option for you and your situation.

Consult with your loan officer about your requirements. They can point you in the direction of the appropriate loan type for your case, whether it’s a conventional loan or a jumbo loan. They are also able to assist with reverse mortgages and building financing.

#2. A Loan Officer’s Role in the Screening Process

When you apply for a loan, your loan officer will be your point of contact. They will conduct research and analyze your financial history to determine whether you are eligible for a mortgage. You won’t have to contact all of the persons involved in the mortgage loan process on a frequent basis, such as the underwriter, real estate agent, settlement attorney, and others, because your loan officer will be the point of contact for all of them. This will relieve you of the stress of attempting to keep track of all the different representatives and their duties.

Because the loan transaction process can be difficult and costly, many customers choose to engage with a person rather than a computer. This is why banks may have multiple branches: they want to accommodate potential borrowers in different areas who wish to meet with a loan officer in person.

Meeting with a loan officer is your chance to demonstrate your creditworthiness. You can use this opportunity to clarify anything that could harm your creditworthiness, such as:

  • A credit card payment that was not made
  • Employment
  • Credit score declines

Loan officers’ responsibilities also include addressing prospective borrowers’ questions, so take advantage of this opportunity to ask yours.

A loan officer will screen you to see if you are eligible for underwriting. They will consider your annual salary, credit score, debt-to-income ratio, and overall debt amount, but these aren’t the only things that will affect your ability to qualify for a mortgage. If you can build a connection with a loan officer and explain your predicament to a human being, you may have a greater chance of securing a loan.

#3. A Loan Officer’s Role in the Loan Application Process

The mortgage application process can be intimidating, particularly for first-time homebuyers. When you engage with the appropriate loan officer, though, the procedure is actually quite simple. When it comes to applying for a mortgage, the process is divided into six stages:

  • Pre-approval: This is the stage in which you locate a loan officer and are pre-approved.
  • Shopping for a home: This is the period you’ve been anticipating — looking for your dream home.
  • Mortgage application: During this stage, a lender will review your application and present you with a loan estimate.
  • Loan processing: Loan processors will verify everything on your application at this phase.
  • Underwriting: The underwriter determines whether you are a good loan candidate for the lender during this phase.
  • Closing: During this stage, you will sign all of the final documents and pay for the closing charges.

What is the responsibility of your loan officer at these stages? If you are approved after the screening process, your loan officer will assist you in preparing your application. During the loan processing phase, your loan officer will contact you if the loan processors have any queries regarding your application. Your loan officer will next forward your application to an underwriter, who will evaluate your creditworthiness. If your loan is approved by the underwriter, your loan officer will gather and prepare the necessary loan closing documentation.

The amount of effort required by the loan officer varies on the type of loan you’re looking for. A secured loan typically necessitates more documentation than an unsecured loan. Because of the various mortgage rules at the federal, state, and local levels, mortgage loans in particular are recognized for needing a huge quantity of documentation.

A good loan officer can play an important role in ensuring that your loan application proceeds successfully.

The Characteristics of a Good Loan Officer

A good loan officer will have certain characteristics. What can you expect from a good loan officer? What are they going to do for you? Some of the characteristics of a good loan officer are as follows:

#1. Involve Expertise in Your Loan Process

Expertise in the industry is one of the skills of a loan officer. Loan officers are licensed by federal and state agencies, and they follow lending standards. Because of the stringent rules, loan officers must be extremely knowledgeable about the lending process and the banking business.

The loan process, particularly for mortgages, necessitates a large amount of paperwork. You’re bound to have a few questions while filling out the relevant paperwork. A loan officer can answer your questions and assist you incorrectly in filling out the application. Issues with paperwork can cause delays in the mortgage application process, so having a lender to guide you can help reduce delays.

When you work with a professional that has in-depth knowledge of the work they’re performing for you, you’ll know you’re in excellent hands and making informed loan decisions.

#2. Customize Loans Based on Your Personal and Financial Situation

Because many loan applications are based on numbers, loan officers might mean the difference between getting approved or denied throughout the screening process. Your credit score, annual salary, debt-to-income ratio, and total debt amount all play a role in the approval process, but these figures do not tell the complete story of your financial history and cannot forecast your financial future.

Loan officers can go above and beyond these figures to customize a mortgage solution to your unique personal and financial circumstances. A mortgage is one of the most important financial decisions a person can make, and the conditions of your mortgage can affect your financial stability and happiness for years to come.

#3. Have Excellent Customer Service Skills

Superior customer service skills are one of the most critical attributes for a loan officer to have. A good loan officer strives to surpass client expectations, provide advice and suggestions tailored to a borrower’s individual needs, and be accessible and responsive to the borrower and everyone else involved in the process.

A good loan officer strives to understand a borrower’s demands in order to not only meet but also surpass each client’s expectations. A loan officer should also be easy to reach and maintain an open line of communication with you. This enables them to assist you at every stage of the loan application procedure.

#4. Make Suggestions to Improve Qualifications

Though a loan officer cannot make any concerns in your credit history disappear, they can advise you on how to enhance your credit and other loan acceptance qualifications. Advice from a loan officer could mean the difference between getting accepted or denied for a loan.

Even if you are not approved for the loan you applied for, following a loan officer’s advice can increase your chances of being approved the next time you apply for a mortgage. A loan officer understands the ins and outs of loans and what causes an applicant to be approved or denied, so take their advice seriously and put it into action to boost your chances of getting approved for a loan.

#5. Effectively Communicates with All Parties Involved

While a loan officer will counsel you, crunch figures, and help you with your application, their job entails much more than paperwork. A good loan officer will also communicate effectively with the various parties involved, such as the underwriter. They’ll operate as your agent and communicate with everyone involved on your behalf, so you don’t have to.

As a result, you may want to work with a loan officer that understands and connects with you. They should be aware of your and your family’s demands and characteristics. If your loan officer understands what you’re looking for, they’ll be able to better assist you in locating the ideal lending choices.


Loan officers are employed in a variety of sectors and areas. Some loan officers work in real estate, while others work as underwriters in banking or insurance. Commercial loan officers specialize in business loans, whereas mortgage loan officers, depending on their specialization, may handle both residential and commercial mortgage loans.

The majority of loan officers have a bachelor’s degree in finance or business. Some loan officers, such as mortgage loan officers, will require special designations or certifications, such as a mortgage loan originator license. Hence the loan officer salary varies according to their sector, experience, qualifications, and geographic location.

Loan Officer Salary FAQ’s

Do loan officers make good money?

In 2019, the median salary for Loan Officers was $63,270. The highest-paid quarter earned $92,960 that year, while the lowest-paid quarter earned $44,840.

Is being a loan officer stressful?

You handle stress well. A loan officer’s job, like any other job that involves dealing with the public, can be stressful at times. If you can cope with tension calmly, your work as a loan officer is likely to be rewarding.

Are mortgage loan officers in demand?

Loan officers are in high demand if you’re looking for a career in the mortgage lending industry.

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