How much does a average loan officier make a year?
2007-07-22 14:40:08 · 9 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
There are SO many variable to that question that it can literally range from $0 to $200K/yr +.
It makes a huge difference if they make a base salary, have an established clientele, are being handed well sourced leads and are experienced.
There are lots of places where you can be hired as a "loan officer" without even taking your test ( you have 6 months typically to process loans in your name without a license), hire you as a 1099 employee so you don't pay taxes and they don't have to pay you hourly and then it's sink or swim baby.
There are A LOT of loan officers out there that don't make squat. When you're 100% commission and new to the industry it can be difficult to obtain business. Granted when you do actually complete a transaction it's typically a high return but the length of time between loans can be completely unkown.
If you're considering this position I would recommend people to take a position with a base salary, solid leads and to stick with it.
These days it's getting as bad as car sales but the sky's the limit if you can manage to succeed.
2007-07-22 14:52:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
There are a lot of factors that enter into that. Typically the loan officer at a lending institution (bank) will start about 28-30,000 a year. A college degree is not required. A loan officer with a broker will get 40-50% of the origination fee with the remaining going to the broker company.
The more loans you bring in, the more you will be paid. Really good loan officers can make up to 85-90,000.pp
2007-07-22 14:52:25 · answer #2 · answered by ttpawpaw 7 · 0⤊ 0⤋
A great, full time loan officer, with experience can make a 6 figure income easily. However, most loan officers either are lazy, only do it part time, or do very little to bring in new clients and these loan officers make less than 30k (many even under 20k). Being a loan officer is all about continually being able to bring in new business, which is the hardest part of originating loans.
This is also a tough time to get into the mortgage industry.
2007-07-22 14:51:08 · answer #3 · answered by dzwreck 4 · 0⤊ 0⤋
it depends maybe 1% of every loan you do but, BUT, how many can you do? Start with the end in mind $50,000? average sales price in your area is?_______200,000? average loan in your area is?________160,000 at 3% down so that turns out to be 1600 at 1% 3200at 2%. Depends on the split and the fees that mortgage broker charges you see? Then decide how many you can find in one month. If you want to make 50K you have to CLOSE over 4 per month at these numbers. Where will you find 4 families that want to move this month? every month? and you have to be able to convince then to get all of the paperwork that is required to you and their credit has to be good enough so that a lender will accept it. now it seems a bit harder eh? which is why Realtors and Lenders try to help each other because they face similar issues. Self disapline and control and lots and lots of contacts! Some easily do $100K/year and referrals are the lifeblood of the business so after 2 years life is sweet!
2007-07-22 15:08:28 · answer #4 · answered by helprhome 5 · 0⤊ 0⤋
To conquer the myth, loan officers don't make a killing... and if we do make good money, you can rest assured that the hours we put in to do it are ungodly.
There is no average for a loan officer. If you are looking for a steady paying LO job, you would want to go to a bank because they pay a base salary regardless of what you close... though the base isn't much... I know it ranges in the low to mid 20's plus a very small commission in my area.
If you want to try to make decent money, you need to work for a broker that pays stricly on a commission basis and find your own business, which is hands down, the hardest part of the job. Especially in this market where no one wants to touch real estate and rates are too high to refinance!!!
2007-07-22 18:20:38 · answer #5 · answered by peachpop 2 · 0⤊ 0⤋
I would say an average loan officer makes approximately 45-60K/year. A good loan officer makes 75K-90K. A very good or exceptional loan officer should make more than 120K/year.
I have owned a mortgage company in southeast Michigan for nine years and have had employees who fell all along those catergories. Just wish I had a few more "exceptionals"!
2007-07-22 14:49:37 · answer #6 · answered by jason n 2 · 0⤊ 0⤋
Loan Officier's who know how to spell "officer" properly often make more!
2007-07-22 14:49:09 · answer #7 · answered by Anonymous · 1⤊ 1⤋
It will depend on the financial institution and the location. In my area (Texas) the salary range is $35,000-to-$55,000/year depending upon experience.
2007-07-22 14:45:38 · answer #8 · answered by crustysob 3 · 0⤊ 0⤋
It would depend on the financial institution & the location would also determine the salary.
2007-07-22 14:44:20 · answer #9 · answered by J R 2 · 0⤊ 0⤋