Loan Officer Salary Data: How Much Do They Make?

Mortgage loan officers help prospective homeowners choose the best mortgage option for their financial situation. This can be a rewarding career if you like helping people—and it can be potentially lucrative.

But before you take that next step in your career, it is important to know what you’re getting yourself into. How much can mortgage loan officers make? Is it a stressful job? What are the daily tasks you will be required to do? In this article, we will answer these questions and more. Here is everything you need to know about a mortgage loan officer salary.

Can mortgage loan officers make good money?

The short answer is, yes, mortgage loan officers can make good money—typically between roughly $70,000 to $90,000 per year, on average. However, as a top earner, it is also possible to earn six figures through commission. But before we break down their salary and pay structure, let’s define what a mortgage loan officer is and broadly what they do.

As a mortgage loan officer, you will help your clients determine if they qualify for mortgages or home loans. Beyond the financial aspect, you will also have the expertise to provide your clients with information on the different types of home loans available, as well as interest rates. Typically, mortgage loan officers work in banks and mortgage companies, providing advice and guidance on home loans.

Mortgage loan officers have expertise in lending products. They also have a comprehensive knowledge of banking industry rules and regulations and the documentation required for getting a home loan.

Read our article on how to become a mortgage loan officer here if you’re interested.

Mortgage loan officer salary

Mortgage loan officers are typically paid in two ways—or a combination of the two—which are on the front or on the back.

If you are a loan officer paid on the front, you receive money from the charges the clients see, such as for processing the home loan, otherwise known as settlement costs. Your clients can either pay these fees out of pocket when they sign the papers or incorporate them into the home loan.

If you are a loan officer paid on the back, you get something similar to commission from the bank for selling the home loan. These are charges clients do not see. If you tell your clients they are getting a no out-of-pocket loan or a no-fee loan, it essentially means you are earning money but are charging it on the back.

Because of this pay structure, it is difficult to pin down exactly how much mortgage loan officers make in the US. The median mortgage loan officer salary is just over $66,000 per year, according to data compiled from Monster.com.

The lowest-earning mortgage loan officers, meanwhile, average roughly $42,500 per year and the highest-earning officers make upwards of $89,000 per year. Your salary will largely depend on the number of fee-based loans you are able to close. This will give you a greater incentive to market yourself to potential clients.

Mortgage loan officer salary: average by state

Here is a breakdown of the average annual salary of a mortgage loan officer by state, according to data compiled by ZipRecruiter.com.

Average mortgage loan officer salaries by state. Source: ZipRecruiter.com.

What do the top mortgage loan officers make?

The top mortgage loan officers in the US make $226,774 per year, according to data compiled by Glassdoor.com.This figure includes base pay and additional pay.

The data found that the average salary among top earners was $136,770 per year. The estimated additional pay was roughly $90,000 per year. That additional pay includes cash bonuses, commissions, tips, and profit sharing.

Is being a mortgage loan officer a stressful job?

Yes. Being a mortgage loan officer can be stressful, especially if you want to become a top earner, mainly due to the variables that go into your decision making.

While mortgage underwriters consider the different levels of risk involved in the borrower’s credit profile, mortgage loan officers have to verify all the information and documentation that the borrower has submitted. Not only do mortgage loan officers ensure everything submitted is accurate, but they must ensure all necessary appraisals and inspections have been completed.

These various factors can combine to make the job of mortgage loan officer somewhat stressful. You are also required to be flexible, meaning you often have to rearrange your schedule to prioritize certain paperwork and deadlines.

Mortgage loan officer salary: key responsibilities

To give you a better idea of the daily life of a mortgage loan officer, let’s look at the key responsibilities. While there are likely other tasks that arise from time to time, your primary responsibilities as a mortgage loan officer will include:

• Gathering information. Collecting all prospective homeowners’ financial information, such as debt and taxes, for the home loan
• Providing mortgage options. Presenting borrowers with different home loan options that make sense for them financially
• Advertising. Identifying future homeowners by advertising or hosting seminars and other channels
• Maintaining the books. Keeping detailed and accurate documentation of all your home loan transactions
• Acting as go-between. Coordinating with other mortgage industry professionals, such as underwriters and home appraisers
• Following regulations. Complying with privacy laws and confidentiality policies during the entire home loan application process

Can mortgage loan officers make 6 figures?

The salary of a mortgage loan officer is not clear cut. Depending on whether you get paid on the front, on the back, or some combination of the two, you will likely have the opportunity to make 6 figures—but nothing is guaranteed. To become a top earner—consistently—you will have to have the right skills and work ethic. During good years, however, even average mortgage loan officers can make more than $100,000 annually.

Let’s look at what it takes to become a top earner as a mortgage loan officer:

1. Get referrals
2. Network
3. Embrace technology
4. Have fun

Here is a closer look at each:

1. Get referrals

As a mortgage loan officer, collecting referrals (and reviews) must be a major part of your marketing and business strategy. Email marketing, for instance, is a good way to gather referrals. If you want to keep it simple, you can just ask your clients. While it may be slightly uncomfortable to ask, satisfied clients should be more than happy to offer referrals.

2. Network

Networking does not have to mean attending giant mortgage industry events or handing out countless business cards to strangers. It can also mean getting to know other mortgage loan officers, local professionals, home inspectors, and real estate agents. By simply meeting other industry professionals, you can add a face to the name, bringing to life your name on a social profile.

3. Embrace technology

Marketing automation software is one great way to embrace technology in the mortgage industry. For instance, marketing automation can reduce time-consuming work from your daily workload. Some software can even produce content for your social media and automatically post it for you. Others can handle your email marketing campaigns, generate reviews, and secure referrals.

4. Have fun

While it can sometimes be difficult to do it, taking time for yourself is one of the best ways to avoid burnout. A 2017 study found that small business owners are almost four times less likely to take time for themselves compared to the average American worker. Taking time to enjoy yourself—to have fun—will make it more likely for you to remain focused and build your brand.

As we have seen, mortgage loan officer salaries vary, largely due to the different pay structures. You can either get paid on the front, on the back, or a combination of the two. While the average salary is typically under $100,000, there are steps you can take to make six figures, such as networking and embracing technology.

If you're truly interested in becoming a mortgage loan officer, take the time to look at the mortgage professionals we highlight in our Best of Mortgage section. Here you will find the top performing mortgage professionals, including mortgage loan officers, across the USA.

Have experience becoming a mortgage loan officer? Let us know in the comment section below.