Before making a final decision about this, you’re thinking about becoming a loan officer but want to learn more about the work-life balance, salaries, job prospects, educational requirements, promotion opportunities, and other factors.
You’re in luck because the following chapters will detail the advantages and disadvantages of working as a loan officer.
Loan Officer Job Profile
| Job Description | Loan officers check, evaluate, recommend and approve loan applications for private loans, mortgages, etc. Loan officers often work for big banks, credit unions and mortgage companies. |
| Salary | $67,000 per year on average, most loan officers make between $46,000 and $79,000 per year. |
| Job Security | Loan officers have decent job security since an increasing number of people need loans to finance big projects and you can also work for many different companies. |
| Job Satisfaction | Good if you love to work in an office environment and also want to work with new clients on a regular basis. |
| Work-Life Balance | Loan officers have pretty decent work-life balance since they often don’t have to work on weekends and also come home from work relatively early. |
| Physically / Mentally Demanding? | Working as a loan officer can be mentally demanding. |
| Future Outlook | Questionable future outlook for loan officers since many jobs in this industry will be lost to intelligent machines in the near future. |
| Requirements | While some loan officers are employed with just a high school diploma, most loan officers hold at least a bachelor’s degree in business, economics, finance or a related field. |
Advantages of Being a Loan Officer
Loan officers don’t have to work on weekends
One benefit of being a loan officer is that you will typically have free weekends and can take many enjoyable family vacations, as opposed to bartenders and many other people who frequently have to work on Saturdays and even Sundays and do not have this luxury.
You come home from work relatively early
You will not only have free weekends, but working as a loan officer will allow you to leave work relatively early.
Actually, most loan officers work in a traditional 9 to 5 setting, making it a great job if you have children and want to spend enough time with them after work.
Loan officers don’t have to work many extra hours
As a loan officer, you also have a fairly set schedule and aren’t required to put in a lot of overtime.
Instead, you will simply work your regular shift and will be able to plan your evenings much easier since you will know when you will return home from work in the morning.
Good work-life balance for loan officers
Loan officers have a good work-life balance and plenty of time to meet up with their favorite people after work because they don’t have to work on weekends or holidays and finish up relatively early.
Being a loan officer is not very stressful
Being a loan officer has the additional benefit of not requiring you to work in a stressful environment.
When compared to investment bankers and many other people who work under much higher time pressure, you will still have a relatively relaxed time at work, despite the fact that clients can be challenging and you may occasionally disagree with your coworkers.
Most loan officers are not at great risk of burnout
As a loan officer, you won’t experience a lot of stress at work, which reduces your risk of developing burnout or other mental health issues. You can also spend the majority of your workday in a relaxed manner.
Loan officers have enough energy left after work
You may have more energy after work and be more eager to participate in social activities in the evening because you don’t have to strain your brain at work as much as nurse practitioners or other professionals who must pay close attention to their work in order to avoid making critical errors.
Loan officers can work indoors
Another advantage of being a loan officer is that you can work indoors, whereas garbage collectors and many other occupations that require outdoor work frequently deal with very unpleasant weather.
You don’t have to work in a heavy physical manner
Additionally, working as a loan officer doesn’t require a lot of physical exertion.
Instead, you will use your brain most of the time, which will prevent you from permanently damaging your body as scaffolders and many other construction workers frequently do.
You can help out your loved ones as a loan officer
Working as a loan officer has another benefit in that you can assist family and friends who may need a loan by advising them on the best loan to choose, how long interest rates should be fixed, etc. and by speaking with them, they can avoid a number of crucial errors and obtain the best loan for the particular situation.
Being a loan officer can be beneficial for your private life
You will gain a lot of life lessons as a loan officer because you will observe a lot of mistakes that your clients make over time and can draw from those lessons to act responsibly with money and avoid making common mistakes in this area.
Loan officers are important to keep our system running
You also do pretty important work as a loan officer. Imagine a world without loans.
You, as a loan officer, have the power to improve the lives of many people because the majority of people would not be able to finance a home or other significant daily expenses.
Loan officers work in a pretty safe environment
Another benefit of working as a loan officer is that, in contrast to police officers or other professions where people frequently put their lives in danger on a daily basis, you will have a lower risk of experiencing serious workplace accidents.
Loan officers can work for many different companies
As there are numerous different loan types, you can work for a wide range of organizations, including banks and mortgage companies, among others.
As a result, you will have a lot of job opportunities, and if you get fired, there is a good chance that you will quickly find a new job.
Demand for loan officers is growing
You should also be aware that a growing number of people in society require loans to pay for their homes or other essential daily necessities. As a result, loan officers are in high demand right now and will probably continue to be so in the near future.
Loan officers have a rather easy time in the dating market
You will find it relatively simple to find someone for a long-term relationship in the dating market because loan officers are considered good providers and have decent job security and come home from work relatively early while they can make decent money.
Now that you are aware of all the benefits of becoming a loan officer, it is important to also discuss the disadvantages of this career path so that you can decide whether you still want to work as a loan officer or would prefer to pursue a different career.
Disadvantages of Working as a Loan Officer
Loan officers often need a college degree
One issue with being a loan officer is that, in most cases, you must have a college degree in order to work in this industry.
As a result, you would have to invest a lot of time and money in your college education, so you should really consider whether or not you want to pursue a career as a loan officer before making such a significant commitment.
You may have to deal with student loan debt
Loan officers frequently take on student loan debt that they must repay for a long time because you will need to spend a lot of money on tuition and other related costs for college.
Loan officers don’t make really good money
Loan officers also earn relatively little money in comparison to other professions requiring a comparable degree.
It might not make financial sense to become a loan officer because, with your finance degree, you could work as a financial analyst and earn significantly more money in the long run.
It may take you long to become independent of your parents
It may take you a while to really start your own life since you will frequently be financially constrained for a long time because you will have to spend many years in college and may also have to pay back significant amounts of student loan debt.
Working as a loan officer is pretty repetitive
Another drawback of being a loan officer is that many of your tasks will be fairly routine. As a result, you won’t have much opportunity to be creative at work and may eventually grow bored with what you are doing.
You work in a classical office job
As a loan officer, you will spend the entire day using a computer and working in a traditional office setting.
While some people enjoy this type of work, many others find it unsatisfying in the long run and prefer to use their hands to perform the majority of their work rather than relying solely on a computer.
You may struggle to see the results of your labor
As a loan officer, you will have to complete a lot of paperwork, so you may find it difficult to see the fruits of your labor right away.
In fact, since you won’t produce any real, tangible goods, you might eventually lose interest in what you’re doing.
Rather limited exit options for loan officers
Another drawback of working as a loan officer is that there aren’t many ways to leave the industry, so you’ll likely spend decades in the same position with little chance of advancement.
Loan officers often can’t work remotely
While some loan officers are able to work remotely for a few days each week, others are required to be physically present at their place of business every single day. It is almost impossible to work entirely remotely since you will typically also need to meet with your clients in person.
Clients can be difficult
While the majority of your clients will be pleasant and appreciative of your work, you will occasionally have to deal with some obnoxious individuals. If you don’t know how to deal with the pressure that comes with it in a healthy way, you may not be happy in your position as a loan officer in the long run.
You may be liable for mistakes as a loan officer
Get proper insurance, especially if you work independently in this field, so that you are covered in case of emergency. If you don’t pay attention to your work and make mistakes that could result in a financial loss for the company you work for or for your clients, you may also be liable for mistakes.
You may have to sell stuff you don’t believe in
When you work as a loan officer, you will frequently be paid on commission. As a result, you may sell a lot of products to your clients that pay great commissions but that you may not truly believe in. This could eventually cause serious emotional conflicts.
Sales pressure can be enormous
Another drawback of being a loan officer is that there can be a lot of pressure on sales in general, and if you don’t sell enough loan contracts, you might get fired pretty quickly, which can significantly increase pressure at work.
You may get bored with your job in the long run
Given how repetitive your work will be, you might eventually lose interest in what you’re doing and grow genuinely tired of and bored with your career as a loan officer.
You can’t make everyone happy
While you will approve many loan applications, you cannot approve all loan requests. As a result, you cannot satisfy everyone, and clients who are rejected may occasionally become very irate with you and engage in serious disputes with you.
Top 10 Being a Loan Officer Pros & Cons – Summary List
| Being a Loan Officer Pros | Being a Loan Officer Cons |
|---|---|
| Loan officers don’t have to work many extra hours | Loan officers don’t make really good money |
| Loan officers don’t have to work on weekends | Questionable future outlook for loan officers |
| Decent work-life balance for loan officers | Loan officers often need a degree |
| Loan officers can help out their loved ones | Student loan debt may become a problem |
| You learn a lot for your own life | It may take you long to become independent |
| Loan officers can work indoors | Clients can be difficult |
| Stress at work is rather limited | You have to reject many loan applications |
| You don’t have to work in a physical manner | Sales pressure can be enormous |
| Loan officers don’t have to ruin their bodies | You often work commission-based |
| Loan officers can make many people happy | Your tasks will be pretty repetitive |
Should You Become A Loan Officer?
Although working as a loan officer can make a lot of sense because you’ll have a reasonable work-life balance, good job security, and the potential to earn a respectable income, you should be aware that most loan officers don’t become wealthy and that they frequently deal with many challenging clients in addition to having to perform repetitive tasks.
In the end, it is up to you to weigh all the benefits and drawbacks of being a loan officer in order to decide whether you still want to pursue this career path or would prefer to work in a different industry.
If you decide that a career as a loan officer is not for you, you might also be interested in reading the following articles:
Sources
Own research and interviews.
About the author
My name is Andreas, and my goal is to inform people about the various career options available to them in the world as it is right now.
In my opinion, people frequently make the mistake of choosing their careers solely on the basis of the income they can generate from them rather than pursuing what truly fulfills them.
This is very sad, and I just want to paint a clearer picture for people of what a rewarding career might entail.
When I began working in consulting after earning my Master’s in Economics, I followed the same procedure.
However, I left pretty soon after that because I didn’t feel like my work had any real meaning for me.
Now that I’m able to pursue my passion, I want to help as many other people as possible embark on this fulfilling journey toward happiness rather than simply pursuing material success.
I conducted a number of employee interviews to give you a thorough understanding of what working in various fields will entail so that you can make the best decision possible regarding your future career choice.
Wanna support my blog? Share it!
FAQ
Is it worth being a MLO?
One of the best careers in the world today for earning potential, flexibility, and growth is becoming an MLO (mortgage loan officer). Working with a mortgage broker who has some degree of independence makes this situation even better.
What are the challenges of a loan officer?
- Signing the right forms. Your credit union probably provides a variety of loans, each requiring particular paperwork related to the loan type.
- Override Required. …
- Accuracy. …
- Signatures. …
- 3rd Party Add-ons.
Is being a MLO stressful?
Even if you don’t know everything on your first day, you should be eager to pick things up quickly so that you can help advise your clients. You deal with stress well. Like any job involving the public, being a loan officer can occasionally be stressful.
Why do MLO make so much money?
Loan origination fees, closing costs, loan servicing and sales are how mortgage loan officers are paid. A mortgage loan officer’s compensation is typically based on commission, and it varies from office to office and state to state.