Loan officers may have to refuse requests for funding at times. The personality and professionalism of your potential loan officer will help you determine their reactions when these situations occur. It is important to be sure that the hire will be professional, courteous and resolute all at the same time. This question helps you test for some of the personality traits that might be ideal. What to look for in an answer:

• Ability to maintain a firm, professional stance
• Keen communication and negotiation skills
• Understanding of the rules and regulations regarding loans

Some companies have their own ways of doing things when it comes to selling or granting loans to potential clients. You’ll want to make sure that any loan officer you hire is willing to fit in with your current team or approach seamlessly. You can use this question to gauge the potential hire’s adaptability and willingness to work with a driven sales team. What to look for in an answer:

• Flexibility when it comes to learning new skills
• Willingness to be part of a team
• Strong interpersonal and leadership skills

Bank employees, including loan officers, need to understand the sometimes strict nature of guidelines that exist for loans at the local level and beyond. This is a sort of general knowledge question that can test the potential hire’s background. They should be able to tell you about most of the basic regulations within the industry and why they matter to the company. What to look for in an answer:

• Specific knowledge of the basic rules of loan procedures
• Understanding of flexibility on some issues
• Ability to adhere to rules

Different loans work for different people. Ideally, your new loan officer should be aware of many of the types of loans available particularly any in which your company specializes. They should be able to explain to you some of the key differences between many types of loans. Look for more than a surface-level understanding of the industry here to determine their professional suitability. What to look for in an answer:

• Broad knowledge of basic loan types available
• Key strengths or weaknesses of each loan
• Scenarios involving choices between different loans

While many people can be loan officers, ideal hires here have some personality traits that might make them particularly suited to the job. This question can tell you not only about the particular candidate’s proven methods but some of the traits that might make them effective people in this industry. Dig down into their relevant abilities and ask for concrete examples of them. What to look for in an answer:

• Clear and courteous communication skills
• Ability to deal with multiple tasks using consistent, accurate skills
• Ability to process requests objectively

Loan officers read complex banking agreements with financial and legal jargon as they prepare and research loan applications. To make an informed decision about whether to approve or deny a client, they must understand the terms of the loan they're applying for. This question helps interviewers learn about a candidate's organizational strategies and knowledge of financial concepts. Strong candidates should display their dedication to accuracy and efficiency without sacrificing their ability to quickly move through each application. A good answer should reference:

• Proofreading
• Focus
• Attention to detail

Here is one possible response to this question: