Preparing For a Loan Interview
Preparing for loan interviews can be a nerve-wracking experience. However, if you know what to expect and are properly prepared, the process becomes a lot less daunting. Here are some helpful tips and guidelines to prepare you for a loan interview.
Good Relationships with Banks
Before you even get to that interview, the most important thing for you to know is that one of the most helpful ways to get a loan is to have an existing, positive relationship with the bank who is issuing the loan. The more positive business history you have with that bank, the more likely the bank will lend you the money.
Once you have that relationship in place, it helps to have some ideas of what questions to expect at the actual loan interview. Here are some questions to help you prepare and of what to expect.
Loan Interview Questions
- What do you need the money for?
- What are your name, address, and telephone number? (Protip: if you rent, you’ll also be asked to provide the same information, but for your landlord)
- Have you lived at your place of residence for more than two years? (If not, be prepared to give your previous address)
- Where are you employed?
- Do you have any other income sources?
Of course, for some questions, these banks can’t just go on your word alone; they require proper documentation. Here’s what you absolutely need, along with a few helpful suggestions:
- Proof of employment that includes your employer’s name, address, and telephone number: usually a recent pay stub satisfies this, a letter from your employer that verifies your employment also satisfies this requirement.
- Documentation of any other income sources, such as rental income, dividends or proofs of collateral.
- Helpful: Proof of address.
- Helpful: If the loan is for a business, projected cash flow statements are a good idea.
A loan interview, whether it is an auto loan interview, personal loan interview or home loan interview, can be difficult, but being prepared helps. Having a history with the bank, having an idea of the questions, and knowing the proper documentation to bring will help ease your worries. So now that you know what to expect, take a deep breath and get prepared!
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