How Much Money Do Loan Officers Make?
If you've ever applied for a bank loan, you've likely encountered a loan officer. These bank employees are responsible for working with clients in the loan application process (per Investopedia). They typically work at financial institutions, such as a bank or credit union, but can also visit clients outside of the office (per U.S. Bureau of Labor Statistics).
As mentioned on Live About, loan officers typically specialize in a specific branch of lending — either commercial, consumer, or mortgage. Beyond these specializations, the responsibilities of loan officers usually include working with clients to gather information and assess loan risks, making recommendations to clients informed by underwriting software, and being knowledgeable about the types and terms of loans.
While you've probably encountered a loan officer in the past, you may have also considered it when thinking about possible career paths. To decide if this is the type of job you'd be interested in, it's important to consider things like expected responsibilities, required education, and, of course, potential pay.
The median annual income of a loan officer is more than $60,000
As reported by the U.S. Bureau of Labor Statistics, the median income for a loan officer in 2021 was $63,380. While this might not outnumber the pay of a pharmacist, it is higher than the median annual income for all wage earners in 2021, which was $45,760. Using data from 2018, Live About found that the top 10% of earners in this position made $132,080 annually, while the lowest-paid 10% made $31,870 per year.
Obviously, this pay will vary depending on location and experience. An applicant's education level is also considered by employers, as Indeed mentions that specific requirements can vary depending on the size of the company. Smaller financial institutions are much more likely to only require a high school diploma (or equivalent) and on-the-job training, whereas larger institutions may prefer candidates with a bachelor's degree in a finance-related field.
A loan officer's salary can be compared to other bank positions
Comparing the median annual salary of a loan officer to the typical earnings of other banking positions can help put the career into perspective. While the individual duties of bank employees can get a bit confusing, there are more than a few notable roles to examine (via CHRON.).
For example, US News finds that the average salary for both financial advisors and financial analysts is higher than that of loan officers, with each making an average of $122,490 and $96,630 respectively. Both of these roles require a bachelor's degree, though, and often necessitate prior experience in lower-ranking jobs (per Indeed).
Though they may be outranked by some positions, loan officers also make more than the average bank teller's salary. Bank tellers, who are responsible for helping bank members make general transactions, such as cashing a check or withdrawing money, are reported to have a national average salary of $29,328 — considerably less than a loan officer's pay.
At the end of the day, there are many factors to consider when deciding what sort of career to pursue. While potential pay is important, it shouldn't be the only thing you keep in mind when planning your future.