What is a Loan Processor?

Loan processors are the ones who decide if a client is fit for a loan or not. They link customers and financial institutions and facilitate the evaluation of clients' assets and repayment capacities and the approval or decline of their loan requests.

Loan processors work hand in hand with mortgage brokers and loan officers. They manage the paperwork of the candidate and help to submit the documents.

The median yearly salary of a loan processor is $49,352, which is an amount that probably does not accurately reflect the level of stress they have to deal with every day. Keeping up with new regulations, pressing closing dates, constant status update requests are just a few of the things that make this profession challenging.

What Does a Loan Processor Do

There are certain skills that many loan processors have in order to accomplish their responsibilities. By taking a look through resumes, we were able to narrow down the most common skills for a person in this position. We discovered that a lot of resumes listed communication skills, math skills and organizational skills.

Learn more about what a Loan Processor does

How To Become a Loan Processor

If you're interested in becoming a loan processor, one of the first things to consider is how much education you need. We've determined that 46.4% of loan processors have a bachelor's degree. In terms of higher education levels, we found that 3.9% of loan processors have master's degrees. Even though most loan processors have a college degree, it's possible to become one with only a high school degree or GED.

Learn More About How To Become a Loan Processor
Top Loan Processor Jobs Near You

Loan Processor Career Paths

As you move along in your career, you may start taking on more responsibilities or notice that you've taken on a leadership role. Using our career map, a loan processor can determine their career goals through the career progression. For example, they could start out with a role such as loan officer, progress to a title such as account executive and then eventually end up with the title business office manager.

Loan Processor

Average Salary for a Loan Processor

Loan Processors in America make an average salary of $38,122 per year or $18 per hour. The top 10 percent makes over $50,000 per year, while the bottom 10 percent under $28,000 per year.
Average Loan Processor Salary
$38,122 Yearly
$18.33 hourly
See More Salary Information

What Am I Worth?

salary-calculator

Roles and Types of Loan Processor

The role of a loan processor includes a wide range of responsibilities. These responsibilities can vary based on an individual's specific job, company, or industry.Here are some general loan processor responsibilities:

  • Reviews loan package against system or investor requirements, correct errors to loan packages
  • Process and prepare mortgage loans (conventional
  • Provide exceptional level of customer service in all functions of the job responsibilities

There are several types of loan processor, including:

Processor

Role:

Processing... Processing... Processing... Yep. You guessed it. As a processor, you'll have to do a lot of processing. Now, what you'll be processing will depend on what industry you're in. As an order entry processor, the main responsibility of your job will be making sure clients and customers are taken care of. That includes taking orders and making sure those orders are filled. But as a loan processor, your roles will be completely different. This just means you have plenty of room for job opportunities. Really the sky is the limit when it comes to a career as a processor.

For the most part, you'll only need a high school diploma to dip your toe in the processing pool of possibilities. Once you have the job, most employers will require you to go through on-the-job training. A big part of being a processor is being able to process the customers' emotions, as you always want them to keep coming back. That's just good business.

  • Average Salary: $32,098
  • Degree: Bachelor's Degree

Loan Officer

Role:

If you want to be in charge of whether people are issued loans or not, then becoming a loan officer is a great place to start. Most generally, your day will consist of evaluating, authorize and even recommending approval for people or businesses that have submitted a loan application.

While movies generally paint loan officers in a bad light, these people are just doing their jobs. The majority of the time, the people asking for a loan don't even qualify. For the most part, loan officers work in banks and other financial institutions. And it's recommended that you earn a bachelor's degree. But the majority of your education will come from learning on-the-job. You'll be turning loans down left and right after no time!

  • Average Salary: $45,817
  • Degree: Bachelor's Degree

Mortgage Loan Processor

Role:

A mortgage loan processor collects and collates all information needed to approve a loan and makes informed decisions concerning an application, inputs that information into the lenders IT systems, verifies information through documents you supply, and makes third party checks with credit bureaus, employer, accountants, and so on. They order an appraisal of the home, obtain title insurance, ensure the compliance of your case with regulatory requirements and internal policies, order the final loan documents, ensure the loan stays on track to close on time, and schedule appointments for closing.

To fit into this role, you need to have an understanding of loan underwriting and processing procedures, knowledge of legislation and best practices, proficiency in mortgage loan computer software, outstanding communication and customer service skills, and well organized and able to handle pressure.

A bachelor's degree in business, accounting, or finance is required for this position. Their salary averages $41,241 a year, that's $19.83 an hour. However, they can earn anywhere between $33,000 and $50,000. The career will grow by 8% and create 72,100 new jobs between 2018 and 2028.

  • Average Salary: $43,594
  • Degree: Bachelor's Degree
View More

States With The Most Loan Processor Jobs

Mouse over a state to see the number of active loan processor jobs in each state. The darker areas on the map show where loan processors earn the highest salaries across all 50 states.

Average Salary: Job Openings:

Number Of Loan Processor Jobs By State

RankStateNumber of JobsAverage Salary
1California1,147$45,801
2Florida899$36,745
3Texas848$39,380
4Illinois498$37,143
5Ohio452$35,100
6Minnesota428$36,863
7Arizona424$42,587
8Pennsylvania411$37,753
9New Jersey370$44,973
10Michigan363$37,290
11Georgia347$35,813
12New York323$44,592
13North Carolina319$41,179
14Missouri303$34,828
15Virginia288$42,389
16Colorado281$41,024
17Washington263$42,613
18Indiana246$37,397
19Tennessee236$36,028
20Maryland227$44,665
21Massachusetts218$39,795
22Alabama172$36,939
23Wisconsin172$35,853
24Utah167$35,841
25Iowa160$32,920
26Kentucky156$34,187
27South Carolina156$34,968
28Oregon135$41,418
29Nevada127$43,285
30Kansas117$37,402
31Connecticut89$40,104
32Arkansas89$34,172
33Louisiana88$36,118
34Nebraska88$33,931
35Mississippi83$36,284
36Maine76$32,752
37Oklahoma75$38,199
38Rhode Island69$40,339
39Idaho63$37,251
40New Mexico57$37,709
41Delaware56$36,226
42Montana49$34,553
43South Dakota48$34,220
44North Dakota45$37,406
45West Virginia38$49,167
46Alaska38$39,719
47Hawaii38$41,693
48New Hampshire32$37,633
49Vermont28$38,600
50Wyoming24$35,419

Loan Processor Education

Loan Processor Majors

Business
36.2 %
Accounting
10.3 %
Finance
7.7 %

Loan Processor Degrees

Bachelors

46.4 %

Associate

22.6 %

High School Diploma

19.1 %

Top Colleges for Loan Processors

1. University of Pennsylvania

Philadelphia, PA • Private

In-State Tuition

$55,584

Enrollment

10,764

2. Northwestern University

Evanston, IL • Private

In-State Tuition

$54,568

Enrollment

8,451

3. University of Southern California

Los Angeles, CA • Private

In-State Tuition

$56,225

Enrollment

19,548

4. SUNY at Binghamton

Vestal, NY • Private

In-State Tuition

$9,808

Enrollment

13,990

5. Villanova University

Villanova, PA • Private

In-State Tuition

$53,308

Enrollment

6,819

6. San Diego State University

San Diego, CA • Private

In-State Tuition

$7,488

Enrollment

30,018

7. Bentley University

Waltham, MA • Private

In-State Tuition

$49,880

Enrollment

4,177

8. Boston University

Boston, MA • Private

In-State Tuition

$53,948

Enrollment

17,238

9. SUNY Stony Brook

Stony Brook, NY • Private

In-State Tuition

$9,625

Enrollment

17,407

10. New York University

New York, NY • Private

In-State Tuition

$51,828

Enrollment

26,339

Top Skills For a Loan Processor

The skills section on your resume can be almost as important as the experience section, so you want it to be an accurate portrayal of what you can do. Luckily, we've found all of the skills you'll need so even if you don't have these skills yet, you know what you need to work on. Out of all the resumes we looked through, 22.1% of loan processors listed loan applications on their resume, but soft skills such as communication skills and math skills are important as well.

  • Loan Applications, 22.1%
  • Customer Service, 19.8%
  • Property Appraisals, 5.5%
  • Mortgage Loans, 4.7%
  • Credit Reports, 4.6%
  • Other Skills, 43.3%

Choose From 10+ Customizable Loan Processor Resume templates

Zippia allows you to choose from different easy-to-use Loan Processor templates, and provides you with expert advice. Using the templates, you can rest assured that the structure and format of your Loan Processor resume is top notch. Choose a template with the colors, fonts & text sizes that are appropriate for your industry.

Loan Processor Resume
Loan Processor Resume
Loan Processor Resume
Loan Processor Resume
Loan Processor Resume
Loan Processor Resume
Loan Processor Resume
Loan Processor Resume
Loan Processor Resume
Loan Processor Resume
Loan Processor Resume
Loan Processor Resume
Loan Processor Resume
Loan Processor Resume
Loan Processor Resume
Loan Processor Resume

Loan Processor diversity

Loan Processor Gender Distribution

Female
Female
79%
Male
Male
21%

After extensive research and analysis, Zippia's data science team found that:

  • Among loan processors, 79.4% of them are women, while 20.6% are men.

  • The most common race/ethnicity among loan processors is White, which makes up 58.3% of all loan processors.

  • The most common foreign language among loan processors is Spanish at 67.0%.

Online Courses For Loan Processor That You May Like

Advertising Disclosure  

1. FPGA Softcore Processors and IP Acquisition

coursera

This course will introduce you to all aspects of development of Soft Processors and Intellectual Property (IP) in FPGA design. You will learn the extent of Soft Processor types and capabilities, how to make your own Soft Processor in and FPGA, including how to design the hardware and the software for a Soft Processor. You will learn how to add IP blocks and custom instructions to your Soft Processor. After the Soft Processor is made, you learn how to verify the design using simulation and an...

2. Understanding Financial Statements: Company Position

coursera

This course is designed to provide a basic understanding of financial statements with an emphasis on the balance sheet. However, to understand accounting driven financial statements, it is important to recognize that accounting is less about counting and more about measuring. “What is it that is being measured?” Well, as the course unfolds, you will learn about the three measurement questions and how the balance sheet helps to answer the first two of these questions. By touring a real company...

3. Become a Mortgage Loan Processor

udemy
4.4
(2,846)

Finibi Mortgage CEO, Joe Correa, teaches you how to become a mortgage loan processor...

Show More Online Courses For Loan Processor
Job type you want
Full Time
Part Time
Internship
Temporary

Best States For a Loan Processor

Some places are better than others when it comes to starting a career as a loan processor. The best states for people in this position are West Virginia, California, New Jersey, and Maryland. Loan processors make the most in West Virginia with an average salary of $49,167. Whereas in California and New Jersey, they would average $45,801 and $44,973, respectively. While loan processors would only make an average of $44,665 in Maryland, you would still make more there than in the rest of the country. We determined these as the best states based on job availability and pay. By finding the median salary, cost of living, and using the Bureau of Labor Statistics' Location Quotient, we narrowed down our list of states to these four.

1. Nevada

Total Loan Processor Jobs: 127
Highest 10% Earn:
$60,000
Location Quotient:
1.51

$43,285

Avg. Salary

View 127 Loan Processor Jobs In NV

2. Arizona

Total Loan Processor Jobs: 424
Highest 10% Earn:
$59,000
Location Quotient:
1.81

$42,587

Avg. Salary

View 424 Loan Processor Jobs In AZ

3. New Jersey

Total Loan Processor Jobs: 370
Highest 10% Earn:
$63,000
Location Quotient:
1.16

$44,973

Avg. Salary

View 370 Loan Processor Jobs In NJ
Full List Of Best States For Loan Processors

How Do Loan Processors Rate Their Jobs?

Working as a Loan Processor? Share your experience anonymously.
Overall Rating*
Career Growth
Work/Life balance
Pay/Salary

Top Loan Processor Employers

We've made finding a great employer to work for easy by doing the hard work for you. We looked into employers that employ loan processors and discovered their number of loan processor opportunities and average salary. Through our research, we concluded that Wells Fargo was the best, especially with an average salary of $39,230. Bank of America follows up with an average salary of $39,837, and then comes JPMorgan Chase & Co. with an average of $48,778. In addition, we know most people would rather work from home. So instead of having to change careers, we identified the best employers for remote work as a loan processor. The employers include Univ. Of Texas Cancer Ctr., Ultimate Staffing, and Consumers Credit Union

Most Common Employers For Loan Processor

RankCompanyAverage SalaryHourly RateJob Openings
1Accenture$50,347$24.2185
2JPMorgan Chase & Co.$48,778$23.45482
3Citi$43,244$20.79245
4PHH Corporation$42,308$20.34428
5Freedom Mortgage$41,557$19.98134
6Movement Mortgage$40,775$19.6084
7Bank of America$39,837$19.15858
8Wells Fargo$39,230$18.861,875
9Urban Lending Solutions$39,042$18.7773
10Nationstar Mortgage$39,010$18.75167
Show More

Loan Processor Videos

Ask the Mortgage Trainer: What Does a Loan Processor Do?
Ask the Mortgage Trainer: How to Train a Loan Processor
Loan Information : Job Descriptions for Loan Processors

Becoming a Loan Processor FAQs

How Long Does It Take To Become A Loan Processor?

It takes 4 years of professional experience to become a loan processor. That is the time it takes to learn specific loan processor skills, but does not account for time spent in formal education. If you include the normal education requirements to complete a college degree, then it takes 7 to 9 years years to become a loan processor.

Do Loan Processors Make Good Money?

Yes, loan processors make good money. A loan processor's average annual salary is $41,782 or $20.09 per hour.

On the lower end of the salary range, you may only make around $33,000, usually for entry-level positions. On the higher end, you can make around $52,000. Senior-level positions can earn you an average salary of $61,300 or more compared to mid-level positions of $45,000.

How Much Does The Average Loan Processor Make?

The average loan processor makes $18.64/hr ($44,742 a year). However, this can range from as low as $14.53/hr ($34,000 annually) to as high as $24.91/hr ($59,000 a year). Factors such as experience and location impact how much a loan processor can make.

Is Being A Loan Processor A Good Career?

Yes, being a loan processor is a good career. This career is a good fit for people who want to work in the finance and banking industries and make a reasonably good salary with room to advance in the role.

Is Being A Loan Processor Stressful?

Yes, being a loan processor can be a stressful job. This job can be stressful due to the many variables influencing your decisions.

While the mortgage underwriter considers the layers of risk involved in the borrower's credit profile, the loan processor must verify all the information and documentation that the potential borrower submits. They ensure that everything submitted is accurate and all necessary appraisals and inspections have been completed.

Is It Hard To Be A Loan Processor?

No, it's not hard to be a loan processor. However, it can be a stressful job at times. Although you need to have specific skills to work as a loan processor, it does not require formal educational training.

Loan Processor Vs. Loan Officer

A loan processor is a professional who reviews and processes loan applications, while a loan officer is someone who works for a bank or credit union and offers loans.

A loan processor works for a bank or other financial institution to review loan applications and submit them to underwriters for final review. They play a crucial role in guiding a client's loan to the closing table.

Have more questions? See all answers to common office and administrative questions.

Search For Loan Processor Jobs

Loan Processor Related Careers

Loan Processor Related Jobs

Loan Processor Jobs By Location

Loan Processor Jobs By Company

Updated April 6, 2023