Loan Officer Interview Questions
The interview questions asked for positions as a loan officer varies depending on the types of loans that you would be working on and the company where you are interviewing. There are numerous ways you can prepare for any kind of job interview, however, there are a number of specific questions that you are likely to be asked during an interview for a position as a loan officer. These include a combination of behavioral interview questions, as well as questions that focus on your lending experience and your ability to succeed on the job.
Asking behavioral questions is a common technique used by hiring managers to assess a prospective employee's ability to fit into their team. They want to know more about who you are and what your ethics and personality are like. For each question, prepare a short anecdote that answers the question and paints you as a smart, qualified, hard-working and personable employee who will jump right into the tasks at hand. Below are some common examples of behavioral questions.
- What is your worst character trait?
- What is your best character trait?
- Tell me about a time when you worked effectively under pressure.
- How do you handle a challenge?
- Have you ever made a mistake? How did you handle it?
Questions About Your Technical Background
Naturally, employers will want to know if you are qualified to be a loan officer, and again they'll want to hear some specific examples drawn from your experience. Here are some such questions to prepare to answer.
- What banking experience do you have?
- What licenses do you have (state and federal)?
- How familiar are you with banking and consumer lending laws and regulations?
- Do you have experience with FHA and VA as well as conventional loans?
- Can you work without a draw?
- How do you feel about commission based pay?
- Explain negative amortization.
Why You Will Be the Best Loan Officer
Once the employer has established that you are qualified, they will next want to know why they should hire you above other qualified candidates. Think back on your successes, how you fostered new business and how you navigated difficult situations. Have an example to speak to each of the following questions.
- How do you source new business?
- Tell me about your referral network.
- Describe how you build relationships with your network.
- Tell me how you have explained to clients the different types of loans and credit options with terms of service.
- Describe a situation with an unsatisfied client and how you fixed the problem.
- Have you ever had a client get angry with you? How did you resolve the issue?
- How can someone be successful in an environment with rising interest rates?
- What methods do you use when deciding to grant an applicant a loan?
- Provide an example when your ethics were tested.
More About Your Current Job
Finally, employers will want to know more about your current or most recent job. Be prepared to talk about various specific situations that explain the level of work with which you are currently, or were most recently, entrusted.
- What size portfolio do you have at your current position?
- Where are you with respect to your percentage of loan and deposit goals, year to date?
- Who was number one in your group last quarter? Where did you rank?
- How do you organize the financial information of your applicants?
- What is the status of your credit and loan files? How could you improve them?
- Describe an effective payment schedule which you created.
- Why are you looking to leave your current company?
Once you've prepared answers to all of the above questions, you will be well prepared to make a case for yourself as your prospective employer's next hire. Additionally, come prepared with a list of questions to ask your prospective employer. Good luck!