As a hiring manager, it’s important to make sure you have a lending staff with a diverse level of experience. You have your long-term loan officers (LOs) who’ve become superstars in the mortgage business, and then you have those who are still trying to learn the ropes. While giving the new hire a chance can be a risk, so can only hiring experienced LOs.
Experienced Loan Officers:
Pros: Hiring experienced loan officers seems like an obvious choice. They are already knowledgeable of the mortgage business, have some kind of clientele, and a personality to match the profession. Additionally, there are no training costs when hiring a new LO. While experienced LOs may seem to provide more convenience, there are some cons to exclusively hiring them for their expertise.
Cons: As with hiring an experienced professional, seasoned loan officers can require a higher salary or larger percentage of each loan. There is also a chance that they may have developed habits that could be outdated by today’s standards. This could potentially make it difficult for these employees to adapt to your company culture.
Inexperienced Loan Officers:
Pros: While starting from scratch might seem like an undertaking, there are benefits to hiring the new guy. The mortgage world is ever-changing and this gives new LOs, the chance to better adapt to the changes and bring a fresh perspective on old problems. With some proper training and a little patience, these LOs can easily end up being your star player.
Cons: The amount of time and money it takes may be why most managers aren’t so keen on hiring someone new to the mortgage industry. There’s usually a probationary period and you never know if the new hire will be cut out to be a loan officer from day one.
Regardless of which type of LO you decide to hire, make sure it’s what’s best for your business long term. If you decide to hire a less experienced LO, remember to make sure you have the means to train them to be a mortgage professional. Additionally, should you decide to go with a well-seasoned LO, be prepared to pay them for their expertise. At the end of the day, choose who’ll be a good fit for the job and the rest of your lending team.