A Loan Closer Career: Pros and Cons
If you want to work in the world of finance without spending years in college, a career as a loan closer may be the right fit for you. Learn more about the pros and cons of a loan closer career to see if it's the right fit for you.
| Pros of a Loan Closer Career |
|---|
| Many positions require only a high school diploma or equivalent* |
| Employers typically provide on-the-job training* |
| Work in an office environment* |
| Most loan closers work 40 hours a week* |
| Increasing employment levels (9% increase predicted from 2012-2022)* |
| Cons of a Loan Closer Career |
|---|
| Relatively low median pay (around $17.73 per hour, as of May 2014)* |
| Must be willing to give customers the bad news when a loan is denied** |
Sources: *The U.S. Bureau of Labor Statistics, **O*NET OnLine.
Essential Career Information
Job Description
Loan closers usually work for banks, credit unions or other financial institutions, performing a variety of duties to assist in the closure of loans. You may be responsible for verifying loan applicants' personal and financial information, obtaining the appropriate insurance, verifying loan amounts and communicating important information to applicants and loan officers. Loan closers typically work a standard 40-hour workweek in a comfortable office environment, but some may work part-time.
Salary Info and Career Outlook
According to PayScale.com, the majority of loan closers earned between $30,488 and $64,277, as of July 2015. According to the U.S. Bureau of Labor Statistics (BLS), job opportunities for financial clerks are expected to increase as a whole. Employment for loan interviewers and clerks, specifically, is predicted to increase 9% from 2012-2022. The BLS attributes this increase in jobs to greater need for workers who can review loan applications to enforce stricter lending regulations.
What Are the Requirements?
Most employers require you to have only a high school diploma or its equivalent to be considered for a loan closer position. Companies typically provide on-the-job training specific to the position. Because the job duties typically include interviewing loan applicants, you must have excellent communication skills. You must also pay strict attention to detail and be proficient in office software.
Job Postings from Real Employers
The main requirements for loan closers are experience and the ability to perform accurate work. Basic math skills, familiarity with industry laws and regulations and organizational abilities could also be requested. The following job postings found in April 2012 can provide insight into the qualifications employers seek:
- A California bank was looking for a loan closer with 3 years' experience in lending and funding, the ability to multitask and proficiency with Microsoft office software. Applicants must have excellent communication and calculation skills and a high school diploma or GED.
- A Pennsylvania homebuilding and mortgage banking company placed an ad for a loan closer to prepare, verify and submit documents and obtain insurance before closing mortgage loans.
- A California company advertised for a loan closer with at least 2 years' experience and familiarity with HUD-1 settlement statements, FHA, VA, FNMA and FHLMC guidelines. Customer service skills, multitasking abilities, organizational skills and computer proficiency were also desired.
How to Maximize Your Skills
By taking relevant coursework in high school, such as mathematics and business classes, you can begin to develop some of the skills needed to succeed in this profession. Additionally, since loan closers often use computers to input financial information and data, taking computer skills courses could also be beneficial.
Become Certified
Professional certification from the National Association of Mortgage Processors (NAMP) can help you stand out to employers. NAMP offers a variety of certifications for loan closers, such as the Certified Purple Processor (CPP) for loan closers who have little or no experience in the field, and the Certified Master Loan Processor (CMLP) for loan closers who have at least 5 years of loan closing experience or 24 hours of training. NAMP certifications require you to pay a fee, pass a background check, agree to perform ethical, honest work and possibly complete a training course, depending on the certification level.
Alternative Career Paths
If you would rather work in a position with greater chances for advancement, consider a career as an accounting clerk. These workers are responsible for posting transaction details and maintaining records of payments. According to the BLS, a degree is not usually required for this position, but a certificate or associate's degree in accounting or a related field can help you stand out to employers. Payscale.com reported that most accounting clerks earned between $23,000 and $44,000, including bonuses, as of May 2012. The BLS predicted that employment for bookkeeping, accounting and auditing clerks would increase 14% from 2010-2020.
Individuals who are interested in working in the mortgage industry, but who seek a higher salary might consider a career as a loan officer. These professionals are responsible for interviewing loan applicants, determining loan eligibility and assisting customers throughout the loan process. According to the BLS, most positions require only a high school diploma, but some positions may require a degree and licensure is mandatory. The BLS indicated that loan officers earned a median annual wage of $58,000, as of May 2011, and the number of jobs was projected to grow 14% from 2010-2020.
