Loan Coordinator Job Description
Loan coordinators review and process loan applications for individuals or businesses. This job involves verifying employment information and documentation, contacting clients if any information is missing, and preparing credit reports. The majority of a loan coordinator’s work is clerical, although they often meet with clients to assess their initial information and provide advice. Loan coordinators usually work regular business hours – overtime is sometimes required. This job is well suited to people who are analytical, organized, and have good interpersonal skills.
Loan Coordinator Duties and Responsibilities
The type of organization a loan coordinator works for will determine their exact role and responsibilities. Based on job listings we analyzed, a loan coordinator’s duties typically involve:
Appraise Loan Applicants
Loan coordinators meet with clients to perform an initial appraisal of their potential borrowing, which involves finding out information about their income, any debt they may have, and explaining different loan types to them.
Assess Credit Scores and Records
This job involves reviewing credit information to assess whether applicants are eligible for a loan. Loan coordinators conduct thorough research on each applicant to assess their credit standing, income data, and any other information that may affect their ability to take out a loan.
Follow Up with Clients
Loan coordinators follow up with clients to ensure that any important points are clarified and that they have all the information they need before the loan is finalized. This involves making sure that all applicable criteria are met and that loan repayment plans are explained in full.
After the loan application has been reviewed, loan coordinators give clients a final answer as to whether or not the loan has been approved. They also provide a clear explanation of what impacted that decision.
Loan coordinators ensure that the documentation provided is fully completed and forwarded to both the borrower and loan provider, with master copies maintained so they can be reviewed at a later date if need be. Loan coordinators also carry out quality control audits of databases on a regular basis to ensure that all information is current and accessible.
Loan Coordinator Skills and Qualifications
Loan coordinators are well-organized multitaskers. They’re also good communicators who take an analytical approach to their work. Typically, employers require a bachelor’s degree in a business or finance subject as well as the following abilities:
- Analytical thinking – loan coordinators are responsible for reviewing applicant files and looking for relevant information, so good analytical skills are a must
- Aptitude for finance – this job involves analyzing the finances of applicants applying for credit, so the ability to read financial statements and understand accounting principles is necessary to this role
- Decision-making – a primary aspect of this job is formulating decisions based on the information provided by loan applicants, so loan coordinators must be good at making decisions and justifying their processes
- Computer proficiency – loan coordinators regularly work with accounting software, so applicants for this job need to be good with computers and have the skills to pick up new applications quickly
- Interpersonal skills – loan coordinators work closely with people from all different backgrounds, guiding them through the loan application process and providing them with information, so they must be good communicators
Loan Coordinator Education and Training
The minimum requirement to become a loan coordinator is a high school diploma, although most employers prefer candidates to have a bachelor’s degree in finance, accounting, business, or another relevant area. Some companies will accept two or more years of loan processing experience instead of a degree, although this is dependent on the organization. Loan coordinators should have a thorough understanding of the state and national regulations regarding loan requirements and the associated documentation.
Loan Coordinator Salary and Outlook
The median annual salary for loan coordinators is nearly $40,000, according to PayScale. Loan coordinators in the 10th percentile earn around $28,000 annually, while the highest paid earn close to $54,000 a year. Loan coordinators can earn bonuses of up to $12,000 based on individual or group performances, and profit-sharing opportunities of up to $5,000.
Location has the biggest impact on the pay level for this role, and many employers offer dental plans and medical insurance as part of their benefits package. The Bureau of Labor Statistics predicts that this sector will grow 11 percent through 2026.
We’ve collected some of the best resources to help you learn more about a career as a loan coordinator:
The Lender’s Network – this blog is packed with useful information about loans, mortgages, credit scoring, and much more, making it a useful reference for those pursuing a career as a loan coordinator
Loan Officer Recruiting Network – over 17,000 people around the world are part of this group, which offers support and advice for professionals looking to hire or earn a position as a loan coordinator. It’s a great place to find guidance for what’s needed to gain a job in this field, as well as for networking with others in the industry
FHA Training Manual for Loan Officers and Loan Processors – this book serves as a great training source for new and experienced professionals in the loan industry, and provides an in-depth guide to FHA-insured loans and mortgages. From file submissions and cash investments to program types and terms, it’s a useful reference to have at hand
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