The Scoop on Loan Officers

In a world where taking out a loan is the only way to own a home, own a car, or send the kids to college, you will probably have to borrow money at some point in your life. You may have started out from an early age, borrowing money from your friend to buy a coke or play a video game.

Chances are you are dealing in much bigger commodities now, and you no longer have friends that can afford to loan you the kind of money that you need to buy the things you want. In that case you will have to deal with a loan officer.

The average loan officer works for a commercial bank, a credit union, a savings bank, or some other financial institution like a mortgage broker. In other words, most places that you ask to lend you money will have a loan officer for you to deal with. A loan officer's paycheck might be based on commission, so keep in mind when you are asking for a loan that the officer wants to give it to you. If your application gets rejected, it is not because the officer wanted to have to turn you down.

Loan officers are there to mediate between you and the lending company, so use the officer you deal with to your advantage. His job is to make sure that he keeps his employer from lending any money to people who might not pay it back, while at the same time making as many loans as he can so that his employer can make money off the interest.

He is there to help you get a loan if you are at all able, perhaps even finding different kinds of loans that you might be able to qualify for if you are not approved for the one originally requested. Your loan officer is also there to explain all terms associated with a loan, so if you have any questions about interest rates or payback terms, he is the person you should contact.

Your loan officer might have a specialization in mortgage loans that will help you when you are in the market for real estate, or commercial loans, which are handy for businesses that need capital. This specialism can be very helpful to you because your loan officer understands many of the laws and stigmas surrounded the type of loan you want to get. He can thus advise you accordingly.

As financial entities start to offer more specific types of loans, loan officers will have to keep on the cutting edge in order to be able to understand their customers' needs. Since a loan officer's job is to maintain the balance between the lender and the borrower, you can be certain that he will try to do the best job possible for each of you and arrive at a nice compromise when it comes to financing terms.

Meet your loan officer with confidence. He might not be your best friend, but he can still loan you the money to get what you need. Or you might just want to become a loan officer yourself.

Click here for more details if you are interested in becoming a loan officer.