How To Become a Loan Officer

The steps to become a loan officer start with earning a high school diploma. Since employers generally prefer job candidates with a business background, it can be a good idea to pursue business-related courses in high school.^{(See disclaimer 3)} These may include classes in finance, economics, accounting and business administration.

Loan officers generally need a bachelor’s degree in a related field, such as finance or economics. The degree provides foundational knowledge in the field in areas such as understanding financial statements, while on-the-job training programs provide job-specific training.^{(See disclaimer 5 )}A master’s degree is not usually expected of loan officers.^{(See disclaimer 3)} 

Although some aspiring loan officers might pursue this career as entry-level, others may first gain experience in related areas, such as banking, sales or customer service. Others may gain experience in real estate before transitioning toward specializing in mortgage loans.^{(See disclaimer 3)}

Certification and/or licensing may be required for some loan officers. Those who specialize in mortgages must hold a Mortgage Loan Originator (MLO) license, which requires the completion of pre-licensing classes, background and credit checks and a national exam.^{(See disclaimer 3)} Mortgage loan officers may also choose to obtain the Certified Mortgage Banker (CMB) certification.^{(See disclaimer 5)} Some states may have additional licensing or certification requirements.^{(See disclaimer 3)}