What Does a Loan Officer Do?

A loan officer works at a bank, credit union or mortgage company to evaluate and authorize loans. They review financial documents and may use underwriting software to help them come to an approval decision.


Job is a term that refers to any type of work or activity for which you receive payment. Some examples include a tradesperson, such as a carpenter, or a professional, such as a lawyer.

Reviewing Applications for Loans

A loan officer is the main contact person a borrower will have when applying for a mortgage or other type of credit. They will be able to explain the different types of loans an institution offers, as well as the qualifications a borrower needs to apply for these loans.

Loan officers also help prepare applications, ensuring that the information provided is accurate and complete. Missing or inaccurate information can delay the processing of an application or lead to rejection. Loan officers know what documents to request from borrowers, such as tax returns, pay stubs and letters of explanation for red marks on the credit report.

They can advise borrowers on how to improve their credit scores and financial status so they are more likely to be approved for the loans they want. If a borrower is having trouble making the payments on their mortgage, for example, they can discuss options with their loan officer, including refinancing or selling their home.

If you are thinking of buying a new home, be sure to shop around and compare interest rates offered by different lenders. A good loan officer will be able to provide you with the costs of each of the loan options that you are considering so that you can make an informed decision about what makes the most sense for your financial situation.

Preparing Loan Applications

A loan officer is the direct contact for most borrowers, particularly when it comes to mortgage loans. Despite the fact that many of these types of loans can be processed online, consumers often prefer to have a well-informed human on the other end of what can be a complicated and costly process. This is one of the reasons why some financial institutions still have branch offices where a loan officer can meet face to face with potential borrowers.

When a loan officer evaluates a borrower, they typically determine whether the applicant has creditworthiness that meets or exceeds the lender’s guidelines. They then help to prepare the application, which is passed to the institution’s underwriter for further review. Depending on the type of loan, the loan officer may also assist with reviewing property evaluations or other documentation that is required to secure a loan.

Some loan officers seek out clients through advertisements, working alongside real estate agents or other referral sources. They also provide support throughout the loan process, answering questions and addressing concerns. This can include helping to explain the technical language in loan documents, which is especially important for people who are purchasing a home or refinancing their existing mortgage. They can also provide a cost estimate, which includes loan closing costs. This information is typically based on current interest rates, which can fluctuate and impact the total cost of the loan.

Reviewing Property Evaluations

The loan officer has an important role in vetting appraisals of property before they are used for a loan. This is done to ensure that the information contained in the appraisal is accurate and reflects current market conditions.

A property valuation involves a surveyor coming to your home and evaluating the space, layout, and condition of it. They will also look at comparable properties in the area, taking into account things like storage, age, and wear and tear to provide you with a researched estimate of how much your property is worth in the current market. Property valuations are used for a variety of purposes, from buying and selling a property to assessing whether a landlord is asking too much money for rent.

There are two different types of appraisal review: a desk review and a field review. A desk review is an assessment of the data provided in an appraisal report, while a field review includes visiting the property to verify the accuracy of the information. If the reviewer finds significant issues with an appraisal, they may recommend that the lender take a different action.

Meeting With Clients

Loan officers work with clients to help them obtain financing for mortgages, student loans, car purchases and other goals. Typically, the loan officer is responsible for collecting all of the necessary information from the client, and then reviewing it to determine the borrower’s creditworthiness and whether the amount they want to borrow will fit within a bank’s approval guidelines. Loan officers may also offer advice on the loan application process.

During initial meetings, a loan officer should focus on building rapport with the client and making them feel valued. One way to do this is by asking them about their career successes and challenges or offering some advice on a topic that they are an expert in. Then, it’s important to listen carefully and answer their questions thoroughly. Finally, it’s a good idea to ask the client about their family life and outside interests so that you can make the most of your time together.

Before the meeting, it’s important to send out an agenda to the client to make sure they are on the same page with you about what to discuss. It’s also a good idea to introduce any team members that will be present at the meeting. This will make them feel included and show that you are prepared for the meeting ahead of time.