Loan underwriters are responsible for determining how risky it is to allow borrowers to have a loan. They also are responsible for approving loans and selecting the proper interest rate for the borrower. Loan underwriters exist in various financial institutions and mostly work with business, home, college and car loans. They are responsible for the entire loan process and deal directly with their clients throughout the process. You will need varying levels of education, experience and skills if you want to become a loan underwriter.
Many places will require you to have a bachelor's degree in accounting, finance, economics, banking or business to become a loan underwriter at the entry level. For jobs in some banks and for higher positions, you might need a master's degree in business administration, finance or accounting. Your degree program should include classes in business ethics, basic and advanced accounting, corporate finance, statistics and management. Laws and regulations in place in the U.S. finance industry mean you will also likely take at least one course in business law or accounting law. If you plan to specialize in underwriting mortgages, you might also need to get a license and take additional training to maintain that license.
The level of job experience you will need to become a loan underwriter depends on the position you're seeking. Entry-level loan underwriters might only need about a year of job experience and a bachelor's degree while lead loan underwriters might need five or more years of experience and an advanced college degree. A good way to gain experience is to find an internship at a bank during your college years. If an internship is not possible, you can try looking for entry-level jobs in banks. After you get an entry-level job, you can inform your employer about your credentials and possibly move into the loan underwriter job you desire.
In addition to experience in the finance field and the necessary college degree, you'll need some additional skills to become a loan underwriter. First, you will need to brush up on your computer skills and learn the basics of spreadsheet and word processing programs. You will also need to review the accounting and finance skills you learned in college and make sure you can analyze financial documents and create balance sheets. After you're hired, your employer might require some additional courses to add to your skills in finance and accounting.
