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Loan Processor Interview Questions

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  1. What mortgage types did you handle as a loan processor? See answer
  2. What kind of experience do you have with VA mortgage loans? See answer
  3. What are the minimum credit scores required for approval for home mortgage loans? See answer
  4. As a loan processor, under what circumstances would you offer debt consolidation loans? See answer
  5. At your previous employment as a loan processor, did you work with auto loans? See answer
  6. Tell me about a time you secured a loan for a client with a bad credit rating? See answer
  7. What methods do you use for credit analysis when processing a loan application?
  8. What documents will you request from a customer applying for a business loan?
  9. Have you ever discovered fraud at your company? How did you deal with the situation?
  10. What are the most important qualities of a successful loan processor?
  11. Tell me about a time when you made a mistake you regretted while investigating a loan application. How did you correct the mistake?
  12. How many loan files can you process simultaneously without skipping due diligence?
  13. Tell me about the different types of mortgages.
  14. What strategies do you think can help us reduce loan processing time?
  15. What software tools can you use as a loan processor?
  16. What is RESPA?
  17. If your friend applied for a loan from your employer and his file lands on your desk, will you process the application or give it to another loan processor for ethical reasons?
  18. From experience, what is the typical day-to-day duties of a loan processor?
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6 Loan Processor Interview Questions and Answers

Q:

What mortgage types did you handle as a loan processor?

A:

This question reveals what kinds of experience he/she is bringing to the table. Someone who has experience as a loan processor has managed a multitude of loan products and understands how each program works. You want to find a candidate who has previous knowledge of each loan product you offer clients. They are seasoned professionals with sales and customer service experience. What to look for in an answer:

  • Experience processing a variety of loans
  • Experience verifying application information
  • Superior customer service skills
Example:

“I handled personal, commercial, and mortgage home loans for applicants. I verified their information, calculated financial details to ensure that the loans were affordable and evaluated their credit scores.

Q:

What kind of experience do you have with VA mortgage loans?

A:

You want a candidate who knows what to look for when qualifying the borrower for a mortgage. They should also know that the property itself has to meet specific VA regulations and standards before the mortgage is approved. A candidate with knowledge of these steps is a great asset to your company. What to look for in an answer:

  • Experience with the VA loan process
  • Knowledge of VA regulations and standards
  • Helps service members qualify for a mortgage
Example:

“I processed VA mortgage loans for military applicants and evaluated their service record to establish eligibility for the loan. Working closely with inspectors and real estate agents, I established that the chosen property met all VA standards and regulations.

Q:

What are the minimum credit scores required for approval for home mortgage loans?

A:

This is an important question as it ensures the loan processor candidate can make an adequate judgment based on a client’s credit score. Someone who has experience processing home mortgage loans knows the minimum credit score required for each mortgage loan program. You want a candidate who has enough experience to tell you the exact credit scores as outlined in loan regulations. The candidate should answer the question correctly without hesitation. They should also know about alternative measures to get qualified, such as paying a higher down payment. What to look for in an answer:

  • Experience approving or denying mortgages
  • Knowledge of qualification requirements for mortgages
  • Experience presenting mortgage products to consumers
Example:

“The minimum credit score for an FHA mortgage is 580. For a conventional or FHA mortgage, the minimum is 620. Applicants qualify for a conventional or FHA mortgage with a score as low as 500 if they pay at least 20% down for their mortgage.

Q:

As a loan processor, under what circumstances would you offer debt consolidation loans?

A:

This question is important to ask as it reveals whether or not the candidate can evaluate the borrower’s current financial status and determine if debt consolidation loans are the right choice. Someone who has experience with debt consolidation loans also understands how the loans work and the circumstances in which they are warranted.They must possess exemplary customer service skills and help the borrower make a well-informed choice about the product. What to look for in an answer:

  • Experience with debt consolidation loans
  • Knowledge of the loan products
  • Can clearly explain why these loans are helpful
Example:

“I would offer this option to qualifying applicants who want to pay off their credit card debts quickly. I offered this option to one client who saw the advantage of paying one lump sum as opposed to four different payments with different APRs.

Q:

At your previous employment as a loan processor, did you work with auto loans?

A:

Someone who has experience with auto loans understands how to help customers qualify for a new or used car. You want a candidate who understands the best practices for approving auto loans while providing the best option for your customers. They must know how to process auto loans and understand the preliminary eligibility requirements for the loans. The candidate will work well with your sales staff and credit managers if they understand what is expected of them prior to getting hired. What to look for in an answer:

  • Experience processing auto loans
  • Knowledge of minimum requirements to qualify for an auto loan
  • Experience presenting auto loan products to consumers
Example:

“Working closely with credit managers and sales personnel, I processed auto loan applications for consumers wanting to purchase a car. I presented loan products and deals to the consumer for which they qualified. The minimum requirements for an auto loan included a monthly income of at least $1,500, a credit score of 550 and verifiable employment.

Q:

Tell me about a time you secured a loan for a client with a bad credit rating?

A:

An experienced loan processor will know that a good credit score is a prerequisite for securing most loans. This question can help hiring managers identify candidates who understand the ethics and guidelines of the profession and the internal protocols of their company. A skilled loan processor candidate’s answer will reflect their adherence to the rules and regulations for providing loans to prevent foul play. The candidate’s answer should emphasize:

  • Professionalism
  • In-depth knowledge of the procedures for giving clients loans
  • Integrity
Example:

“I have only secured a loan for a client with a bad credit twice. In most cases, an excellent credit history allows me to offer loan applicants a wide range of favorable interest rates. But in those two occasions, I was able to find interest rates that were acceptable to the clients and my employer. Before authorizing the applications, I informed my manager and she gave me the go-ahead.”

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