Preview Questions Loan Officer | Role Specific Skill

Question 1: When assessing a client's risk for a personal loan, what is the most critical factor in the credit risk evaluation?

Which action should you take?

Choose only one option

The client's age and residence stability

The current interest rate on the loan

The client's employment status and income level

The client's credit history and debt-to-income ratio

Question 2: What type of loan is commonly used to finance commercial real estate properties?

Which action should you take?

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Auto Loan

Personal Loan

Home Equity Loan

Commercial Mortgage

Question 3: What is the primary benefit of a 15-year fixed-rate mortgage over a 30-year fixed-rate mortgage?

Which action should you take?

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Lower interest rates and faster equity build-up

Ability to refinance more easily

Lower monthly payments due to a longer term

Lower closing costs

Question 4: Which of the following is NOT a part of the Truth in Lending Act (TILA) disclosure requirements?

Which action should you take?

Choose only one option

APR (Annual Percentage Rate)

Total cost of credit

Collateral details

Total finance charges

Question 5: What does a loan officer typically check in the borrower's credit report during the documentation process?

Which action should you take?

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The borrower's employment history over the past five years

The borrower's mortgage insurance policy number

The borrower's credit score, credit inquiries, and any derogatory marks

The borrower's rental history and past utilities payments

Question 6: Which of the following is not typically considered when assessing a client's creditworthiness?

Which action should you take?

Choose only one option

The client's income level and employment stability

The client's monthly spending habits

The client's credit score and payment history

The client's existing loans and credit cards