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Many people raising families are looking for ways to supplement their income to achieve a comfortable lifestyle. If you already have a degree in financing or a job in a finance-related field, using your skills and becoming a loan officer as a side hustle can prove to be very lucrative.
What Does a Loan Officer Do?
A loan officer helps customers through the loan application process from start to finish. This can be for any type of loan, however, in most cases, loan officers work with people applying for commercial mortgages, home mortgages, car loans, or college tuition financing. A loan officer gives borrowers a personal experience, acting as a middleman between the bank or lending company and the borrower. A loan officer also researches different lenders to find the best loan to fit the individual client’s needs.
Where Can You Find Loan Officer Jobs?
Loan officers most often work for banks, mortgage companies, credit unions, or other financial institutions that help people acquire loans. They can work at the office or in remote locations such as their home.
What Are the Qualifications of Becoming a Loan Officer?
Unbelievably, while a bachelor’s degree in finance is something most financial institutions prefer, it’s not a requirement for all loan officer jobs. You will need a high school diploma and you should possess excellent math and communication skills. Most companies prefer to hire a candidate with a bachelor’s degree in finance, business, or economics who has between two and five years of experience.
There are some companies that will consider applications from people with little-to-no experience thought. In fact, even if you possess only a high school diploma you can become a loan officer. However, in order for a bank to seriously consider you try to acquire some experience in the finance field. You can do this by taking on a part-time job at a bank to get a general understanding of their rules and regulations or consider customer service, sales, or collections job with a financial institution.
What’s Involved After Hiring Process?
Most financial establishments provide on-the-job training sponsored by the company. Software specific to the company you work for is also something you may need to learn, especially if you will work with underwriting. All loan officers in the mortgage field also must have a license to practice. In order to obtain a license, you must complete a 20-hour course and then pass the final exam, as well as a background check and a credit check.
How Much Do Loan Officers Make?
A loan officer can easily make six figures. And, even if you only want to do the job as a side hustle you can still earn a good living. It really depends on what company you work for, how much experience you have, and the state of the economy. During a good buyer’s market when interest rates are low, people tend to buy more homes and trade in older vehicles. This increases the number of people you’ll serve on a regular basis, which in turn, increases your commission.
Things to Consider Before Becoming a Loan Officer
While becoming a loan officer can pad your salary nicely, it can also be a stressful job. No loan is a guarantee and in a moment you can go from having a good payday to zero dollars. Your job description includes finding a loan that fits your client’s needs. This means you will from time to time you might work with borrowers that barely qualify for a mortgage and you will have to search high and low to find a lender willing to take on the risk.
If you are looking for a side hustle to bring in some extra cash and live a comfortable life, being a loan officer is a good option. While there are some risks involved, being a loan officer working for the right company can pay really well.