How to hire a Loan Processor

How to hire a loan processor, step by step

Here's a step-by-step loan processor hiring guide:

• Step 1: Identify your hiring needs
• Step 2: Create an ideal candidate profile
• Step 3: Make a budget
• Step 4: Write a loan processor job description
• Step 5: Post your job
• Step 6: Interview candidates
• Step 7: Send a job offer and onboard your new loan processor
• Step 8: Go through the hiring process checklist

What does a Loan Processor do?

Post A Loan Processor Job For Free, Promote It For A Fee

Post Free

1. Identify your hiring needs

   First, determine the employments status of the loan processor you need to hire. Certain loan processor roles might require a full-time employee, whereas others can be done by part-time workers or contractors.

   Determine Employee vs Contractor Status

   Is the person you're thinking of hiring a US citizen or green card holder?

   Yes

   No

   You should also consider the ideal background you'd like them a loan processor to have before you start to hire. For example, what industry or field would you like them to have experience in, what level of seniority or education does the job require, and how much it'll cost to hire a loan processor that fits the bill.

   This list presents loan processor salaries for various positions.

   Type Of Loan Processor	Description	Hourly Rate
   Loan Processor	Financial clerks do administrative work for many types of organizations. They keep records, help customers, and carry out financial transactions.	$13-24
   Mortgage Consultant	A mortgage consultant is a professional who helps customers and businesses identify the best option for mortgage deals based on their financial resources. To maintain an excellent relationship with clients, mortgage consultants must possess a broad knowledge of the company's products to answer all the clients' queries and concerns... Show More	$11-30
   Closing Coordinator	In the real estate industry, a closing coordinator is in charge of coordinating the final stages of a real estate deal, ensuring efficiency and smooth transaction. Among their responsibilities include preparing and processing legal documents, liaising with the buyer and seller, managing timelines and payment plans, and ensuring that both parties adhere to the terms of the agreement... Show More	$13-25

   Show more

2. Create an ideal candidate profile

   Common Skills:

   • Loan Applications
   • Customer Service
   • Property Appraisals
   • Mortgage Loans
   • Credit Reports
   • FHA
   • Escrow
   • Loan Packages
   • Loan Approval
   • Lenders
   • Underwriting Guidelines
   • Tax Returns
   • Process Loans
   • Investor Guidelines

   Check All Skills

   Responsibilities:

   • Manage a monthly pipeline averaging 100 files from origination to funding per month as a Jr. processor.
   • Review and verify documentation consistent with company policies and compliance of FNMA, FHLMC, FHA/VA, USDA guidelines.
   • Gather all documentation necessary to process mortgage loans in accordance with FNMA and credit union guidelines/requirements.
   • Disclose and re-disclose the LE's and Prelim TRID require CD.
   • Upload monthly reports to FHLMC including principal & interest reports, delinquent loans and appraisals.
   • Ensure conditions on USDA commitments are met and loan files are prepared for closing on time.

   More Loan Processor duties

3. Make a budget

   Including a salary range in your loan processor job description is a great way to entice the best and brightest candidates. A loan processor salary can vary based on several factors:

   • Location. For example, loan processors' average salary in maine is 33% less than in west virginia.
   • Seniority. Entry-level loan processors earn 44% less than senior-level loan processors.
   • Certifications. A loan processor with a few certifications under their belt will likely demand a higher salary.
   • Company. Working for a prestigious company or an exciting start-up can make a huge difference in a loan processor's salary.

   Average loan processor salary

   $38,122yearly

   $18.33 hourly rate

   ---

   Entry-level loan processor salary

   $28,000 yearly salary

   Updated March 29, 2025

   Average loan processor salary by state

   Rank	State	Avg. Salary	Hourly Rate
   1	California	$46,606	$22
   2	New Jersey	$45,734	$22
   3	New York	$44,864	$22
   4	Maryland	$44,708	$21
   5	Nevada	$43,316	$21
   6	Washington	$42,818	$21
   7	Arizona	$42,638	$21
   8	Virginia	$42,350	$20
   9	North Carolina	$41,828	$20
   10	Oregon	$41,752	$20
   11	Colorado	$40,994	$20
   12	Texas	$40,002	$19
   13	Massachusetts	$39,695	$19
   14	Michigan	$37,380	$18
   15	Pennsylvania	$37,355	$18
   16	Illinois	$37,299	$18
   17	Kansas	$37,292	$18
   18	Indiana	$37,222	$18
   19	Florida	$36,951	$18
   20	Minnesota	$36,864	$18

   Average loan processor salary by company

   Company

   Rank	Company	Average Salary	Hourly Rate	Job Openings
   1	Stanford University	$51,051	$24.54
   2	BNP Paribas	$45,088	$21.68
   3	D.R. Horton	$44,332	$21.31	15
   4	Richmond American Homes	$43,823	$21.07
   5	BGC Partners	$43,479	$20.90
   6	CyberCoders	$43,044	$20.69
   7	Washington Trust Bank	$42,596	$20.48	7
   8	CTBC Bank	$42,500	$20.43	2
   9	GPAC	$42,487	$20.43
   10	HealthCare Associates Credit Union	$42,182	$20.28
   11	Neiman Marcus Group	$41,876	$20.13
   12	Idaho Central Credit Union	$41,847	$20.12	1
   13	Century Communities	$41,308	$19.86	7
   14	Murray	$40,608	$19.52
   15	United Community Bank	$40,593	$19.52	23
   16	Customers Bank	$40,261	$19.36
   17	First Entertainment Credit Union	$40,018	$19.24
   18	Summit Funding	$39,973	$19.22	7
   19	Nefcu	$39,946	$19.20
   20	German American	$39,918	$19.19

4. Writing a Loan Processor Job Description

   A job description for a loan processor role includes a summary of the job's main responsibilities, required skills, and preferred background experience. Including a salary range can also go a long way in attracting more candidates to apply, and showing the first name of the hiring manager can also make applicants more comfortable. As an example, here's a loan processor job description:

   Loan Processor job description example

   Department Hours are Monday - Friday 8am - 6pm central, rotating Saturday shift 9am-1pm. Shift may vary between these hours.

   Pay range $16/hour - $20/hour based on relevant experience.

   Qualifications

   High School degree or equivalent; and one-year relevant experience or equivalent combination of education and experience.

   Advancial Federal Credit Union is an Affirmative Action and Equal Opportunity Employer. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, age, national origin, or protected veteran status and will not be discriminated against on the basis of disability. Equal Employment Opportunity Posters
   
   Advancial Federal Credit Union participates in the Electronic Employment Verification process. Please click here for more information.
   
   If you are an individual with a disability and would like to request a reasonable accommodation as part of the employment selection process, please complete the form below. If you'd like to view a copy of the company's affirmative action plan, please complete this form.

   Overview

   At Advancial, we always strive to provide the best service and products to our members because we love what we do. We work together to build a culture that promotes a positive employee experience. We've been named a Best Company to Work for in Texas for 11 consecutive years and a Best and Brightest Company to Work For nationally and locally because we're serious about building fulfilling careers and not just day jobs.

   Advancial is one of the oldest and largest credit unions in the country. We are an established and proactive full-service financial institution providing personal, convenient and advanced financial services to individuals and select group partners. Our mission is to create lasting value for our members through superior service, quality products, and innovative solutions.

   We invite you to learn more about this position and what Advancial has to offer by completing our online application.

   Copy This Example

   

5. Post your job

   To find loan processors for your business, try out a few different recruiting strategies:

   • Consider internal talent. One of the most important talent pools for any company is its current employees.
   • Ask for referrals. Reach out to friends, family members, and your current work to ask if they know any loan processors they would recommend.
   • Recruit at local colleges. Attend job fairs at local colleges to recruit entry-level loan processors with the right educational background.
   • Social media platforms. LinkedIn, Facebook, and Twitter have more than 3.5 billion users, and they're a great place for company branding and reaching potential job candidates.

   Post your job online:

   • Post your loan processor job on Zippia to find and recruit loan processor candidates who meet your exact specifications.
   • Use field-specific websites.
   • Post a job on free websites.

6. Interview candidates

   To successfully recruit loan processors, your first interview needs to engage with candidates to learn about their interest in the role and experience in the field. You can go into more detail about the company, the role, and the responsibilities during follow-up interviews.

   You should also ask about candidates' unique skills and talents to see if they match the ideal candidate profile you developed earlier. Candidates good enough for the next step can complete the technical interview.

   The right interview questions can help you assess a candidate's hard skills, behavioral intelligence, and soft skills.

7. Send a job offer and onboard your new loan processor

   Once you've decided on a perfect loan processor candidate, it's time to write an offer letter. In addition to salary, it should include benefits and perks available to the employee. Qualified candidates may be considered for other positions, so make sure your offer is competitive. Candidates may wish to negotiate. Once you've settled on the details, formalize your agreement with a contract.

   It's also good etiquette to follow up with applicants who don't get the job by sending them an email letting them know that the position has been filled.

   After that, you can create an onboarding schedule for a new loan processor. Human Resources and the hiring manager should complete Employee Action Forms. Human Resources should also ensure that onboarding paperwork is completed, including I-9s, benefits enrollment, federal and state tax forms, etc., and that new employee files are created.

8. Go through the hiring process checklist

   • Determine employee type (full-time, part-time, contractor, etc.)
   • Submit a job requisition form to the HR department
   • Define job responsibilities and requirements
   • Establish budget and timeline
   • Determine hiring decision makers for the role
   • Write job description
   • Post job on job boards, company website, etc.
   • Promote the job internally
   • Process applications through applicant tracking system
   • Review resumes and cover letters
   • Shortlist candidates for screening
   • Hold phone/virtual interview screening with first round of candidates
   • Conduct in-person interviews with top candidates from first round
   • Score candidates based on weighted criteria (e.g., experience, education, background, cultural fit, skill set, etc.)
   • Conduct background checks on top candidates
   • Check references of top candidates
   • Consult with HR and hiring decision makers on job offer specifics
   • Extend offer to top candidate(s)
   • Receive formal job offer acceptance and signed employment contract
   • Inform other candidates that the position has been filled
   • Set and communicate onboarding schedule to new hire(s)
   • Complete new hire paperwork (i9, benefits enrollment, tax forms, etc.)

   Sign Up To Download Full List

   Sign Up

How much does it cost to hire a loan processor?