How Many Different Types of Loan Officers Are There and Which Ones Do What?
People are always interested in what different types of lenders can do for them when they’re on the hunt for an important loan. If you’re currently searching for a loan, there is a pretty good chance that you will end up working together with a loan officer.
What many people don’t know is that there are a few different “types” of loan officers. When it comes to loan officers, it’s not a one-size-fits-all situation. If we’re speaking in general terms, there are actually three different types of loan officers that you should be aware of before going out.
Consumer Loan Officers
The job of a consumer loan officer is to write personal loans. These personal loans can range from someone need to pay for school or purchase a new car. While most things are automated in these situations, especially when the loans are low-cost, consumer loan officers are there to help consumers through the lending process. This is especially true when those consumers have unique situations. With that said, if you do decide to go work with a smaller bank or credit union, you will most likely have the loan officer guide you through the entire process without utilizing any automation.
Commercial Loan Officers
The job of a commercial loan officer is to give out loans to businesses. A business might need a loan for a number of reasons, including upgrading equipment and space or development. These types of loans tend to be more complex than personal loans, as they involve more than personal financials. Typically, loan officers will work without automation in these cases.
If the commercial loan asked for is too large for the specific lender to provide, they may even team up with different lenders to create a package for your business.
Mortgage Loan Officers
Mortgage loan officers are there to provide loans for consumers to purchase real estate. That real estate can be for commercial or residential use. Sometimes these mortgage loan officers are sometimes referred to as mortgage brokers. These mortgage loan officers can work with large FDIC banks or smaller credit unions, though they are typically paid on commission and have to seek clients on their own. They will work hand-in-hand with lenders to help and real estate companies to provide multiple options for consumers.
Choosing the Right Loan Officer
So obviously the type of loan officer that you choose comes down to the type of loan that you are looking for. Essentially, all loan officers are there to do the same thing: sell you a loan. Some get paid on commission and some get paid on salary. Some are honest and some will do whatever it takes to get a larger cut. Know the type of loan officer that you are working with and always ask questions.
Whenever you are out there looking for a loan, be sure to shop around so that you can find the best deal and the most reliable officer. Have you worked with a loan officer of any type before? Feel free to share your experience in the comments!