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Real estate broker vs loan officer

The differences between real estate brokers and loan officers can be seen in a few details. Each job has different responsibilities and duties. Additionally, a real estate broker has an average salary of $80,250, which is higher than the $45,817 average annual salary of a loan officer.

The top three skills for a real estate broker include real estate sales, purchase agreements and financial resources. The most important skills for a loan officer are customer service, origination, and loan origination.

Real estate broker vs loan officer overview

Real Estate BrokerLoan Officer
Yearly salary$80,250$45,817
Hourly rate$38.58$22.03
Growth rate5%4%
Number of jobs19,15163,663
Job satisfaction-4.5
Most common degreeBachelor's Degree, 65%Bachelor's Degree, 61%
Average age4945
Years of experience-6

What does a real estate broker do?

Real estate appraisers are unique in that many of them are self-employed. Nevertheless, it is a career that will require an enterprising, inquisitive, and motivated personality, as well as impartiality and unbiased nature. Appraisers will provide objective opinions on the value of properties, as well as assist the owners/managers/investors for real estate. They must also verify legal real estate records, inspect properties, photograph interior and exterior structures, and prepare and maintain written reports on property values.

What does a loan officer do?

Loan officers are responsible for assisting borrowers on the best type of loans to avail and guiding the clients throughout the application process. A loan officer must be highly knowledgeable about different lending products, payment plans, loan regulations, and essential files for fast loan approval. Loan officers also act as the first point of contact, conducting an initial screening of the customers, process loan contracts and appropriate documentation, update account records, and respond to customer's inquiries. A loan officer also has the right to reject loan applicants who do not meet loan qualifications.

Real estate broker vs loan officer salary

Real estate brokers and loan officers have different pay scales, as shown below.

Real Estate BrokerLoan Officer
Average salary$80,250$45,817
Salary rangeBetween $56,000 And $114,000Between $30,000 And $69,000
Highest paying CityNew York, NYNew York, NY
Highest paying stateNew YorkNew York
Best paying companyVillage Real EstateBangor Savings Bank
Best paying industryFinanceFinance

Differences between real estate broker and loan officer education

There are a few differences between a real estate broker and a loan officer in terms of educational background:

Real Estate BrokerLoan Officer
Most common degreeBachelor's Degree, 65%Bachelor's Degree, 61%
Most common majorBusinessBusiness
Most common collegeUniversity of Southern CaliforniaUniversity of Pennsylvania

Real estate broker vs loan officer demographics

Here are the differences between real estate brokers' and loan officers' demographics:

Real Estate BrokerLoan Officer
Average age4945
Gender ratioMale, 54.3% Female, 45.7%Male, 55.3% Female, 44.7%
Race ratioBlack or African American, 5.3% Unknown, 4.3% Hispanic or Latino, 13.2% Asian, 6.9% White, 70.0% American Indian and Alaska Native, 0.3%Black or African American, 9.0% Unknown, 4.6% Hispanic or Latino, 15.7% Asian, 6.3% White, 63.9% American Indian and Alaska Native, 0.5%
LGBT Percentage13%8%

Differences between real estate broker and loan officer duties and responsibilities

Real estate broker example responsibilities.

  • Manage all accounting, cash management, budgeting and financing for individual LLC's and for corporate entity.
  • Prepare all marketing materials, coordinate closings, enter necessary data into the MLS to ensure homes are represent correctly
  • Review, analyze and process moderately complex homeowner property, contents and liability claims within assign work with REO properties.
  • Stabilize operations and financial performance of underperforming properties, directing investors in maximizing value and/or divesting assets to optimize ROI.
  • Process the movement of funds and equities.
  • Prepare and submit probate and administration petitions.
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Loan officer example responsibilities.

  • Manage a multifacete commercial real estate investment firm.
  • Supervise and manage the processing staff and also underwrite conventional loans for correspondent lenders.
  • Follow up leads for refinance loans gather all applications and necessary paperwork to qualify applicants from origination to close of escrow.
  • Analyze available resources to determine suitable mortgage products (FHA, FNMA/FHLC) to meet clients' purchasing or refinancing goals.
  • Originate and process various loan products including government, conventional, portfolio, construction, USDA mortgages, home equity line/loans.
  • Originate FHA, VA, conventional, jumbo, and USDA loans, according to specific lender guidelines in broker environment.
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Real estate broker vs loan officer skills

Common real estate broker skills
  • Real Estate Sales, 14%
  • Purchase Agreements, 11%
  • Financial Resources, 8%
  • Property Management, 7%
  • Open Houses, 5%
  • Client Relationships, 4%
Common loan officer skills
  • Customer Service, 17%
  • Origination, 13%
  • Loan Origination, 5%
  • FHA, 5%
  • NMLS, 5%
  • Loan Products, 4%