How to Answer: What are the most important factors to consider when processing a loan application?
Advice and answer examples written specifically for a Financial Analyst job interview.
30. What are the most important factors to consider when processing a loan application?
What You Need to Know
Your interviewer wants to see whether you can comfortably and confidently break down, in a clear communicative fashion, the factors you'd consider when deciding whether to approve a loan application. Such as the current economic climate, the applicant's credit score, income, debt-to-income ratio, employment history, education, and experience. The purpose of the loan and the applicant's collateral, personal financial statements, tax returns, and other financial information. Spend time preparing for this question and others like it, and recall any factors you would consider making an informed decision about whether to approve a loan application. Preparing for each question in this manner will help you come across as confident and well-versed in every aspect of your field.
Written by Kevin Downey on August 3rd, 2023
Experienced Example
"I leave no stone unturned. Of course, the current economic climate will help determine how we're lending and how we decide whether the applicant's credit score is above or below our margin. I'd also look at the purpose of the loan and the potential collateral. From there, I'd evaluate their income and debt-to-income ratio, employment history, experience, education, personal financial statements, tax returns, and anything else worth considering, depending on how everything else looked."
Written by Kevin Downey on August 3rd, 2023