How To Prepare for the Texas Loan Officer Exam

Texas has a booming housing market and that means it’s not a bad time to be a Texas loan officer. There are so many benefits in this industry from great retirement plans and medical coverage to competitive pay and room for growth. While you may meet the requirements (we can go over this) you still need to pass the Texas loan officer exam.

Most of us freeze when it comes to finding out where to start. It may be due to the dreaded thought of studying or just realizing we have to take a test at the end of this. Let this serve you as the ultimate guide to preparing for the Texas loan officer exam. Easy to read and step-by-step this is your foolproof way to get certified.

What Are the Requirements?

In order to even be considered for taking the exam, you need to ensure you pass all the requirements. Some are in your control while others are not. Here is a quick bullet list of what needs to be done before you take the exam.

Get your NMLS account
Complete all your pre-License education
You are of 18-years-old
Pass background checks and screening

While some of this will be checked before entering a course for your pre-licensing education, part of the other requirements like background checks will be taken before or after the exam.

Pre-license Education

Your pre-license education is an important part of preparing for your exam. While this is required to even apply for the exam, the material will cover everything you need to know to become a Texas loan officer.

Here is what you can expect to be covered in your pre-license education when choosing the right company.

Required S.A.F.E Program

Regardless of which kind of Texas loan originator license you are aiming for, all licenses will be required to take the NMLS S.A.F.E course. This is not only required by Texas but is mandatory across the board for all 50 states. This is a 20-hour course for those who are new to seeking their mortgage loan officer license.

License Overviews

There are two different kinds of mortgage loan officer licenses to choose from in Texas. Depending on which one you choose will depend on your class requirements.

TX-OCCC License: This license is for those who are practicing with residential mortgage loans for self or company monetary gains.
TX-SML License: This license is for those loan officers or companies specifically registered under Texas Finance Code Chapter 166 or Chapter 157 while working with residential mortgage loans for gain.

Choose Your Test Prep

Even though you learn most of the material through your pre-licensing courses it never hurts to consider working with a test prep center that can help you pass the exam. You will want to make sure you work with a legitimate company so there are a few things you want to look for when choosing a test prep provider.

Sign up for Texas Mortgage License Classes: Texas Loan Officer Classes

Testimonials

Making sure that other students have passed using their material is one of the most important things you can do. The last thing that you need is to work with a company that has no success with its students. Sometimes you can even email the company and ask if you can be put in contact with a past student to ask them some questions. Going the extra step can make you feel more comfortable investing in a particular program.

Guarantees

Companies that are confident in what they are selling often will offer a money-back guarantee or a pass guarantee. This is something that saves you from investing in the wrong course and is highly recommended. Some courses may consider letting you go through their course again for free but with a tutor. This is also an option to consider depending on what kind of deal most appeals to you.

Time Allotted

Not everyone can get it done in three days. Some courses will try to rush the process while others will drag it out. Check for self-pace options that allow you to work at your schedule. The only thing to consider is not taking too much time because you need to stay within a certain amount of years from your pre-license education to actually taking the exam. Most people don’t run into this expiration issue.

Offers Test Taking Strategies

Sometimes it’s not even the material that stumps test takers. Sometimes it is just that they are bad at timing and taking tests. That’s why a company that helps you go through strategies that may work for you is crucial.

Take Practice Exams

There are a few different reasons to take practice exams even after you have gone through the test prep course and the pre-licensing course. Taking practice exams allows you to implement different strategies and see which works best for you. Many who have passed the NMLS exam will note that these tests try and trick you so here are some things to watch out for.

Imagine the situation the question is talking about. Time should allow for it. Sometimes they have questions that purposefully try to trick you. Really taking your time or reading it twice can save you a costly mistake.
Watch out for the negatives. The NMLS exam often uses phrases like “everything but” or “everything except” to confuse the student.
Answer the ones you know for sure with “Confirm” and the ones you want to come back to with “Confirm and Review.” You don’t want to confuse yourself by reviewing all the questions so when you are confident in your answer, submit it.
Don’t skip the tutorial! Sometimes what ends up happening is that students will struggle to find where their calculator is because they skipped the tutorial on how to take the exam. Ensure you are familiar with the instructions before actually starting.

There are tons of tips and tricks like the process of elimination and more. Taking practice exams that mimic the real one allows you to implement different timing strategies to see which one works best for you.

Understand The Exam Procedure

While you should definitely go over the test procedure with your exam prep it doesn’t hurt to confirm it here. There are several parts to the test when applying to become a Texas Mortgage Loan Officer.

SAFE MLO National Test Component

This comes from the course you originally took as a part of required pre-licensing education. This is the same test for everyone in every state. Here you will cover the following topics.

Federal mortgage laws
Ethics as a loan officer
MLO activities
General Industry knowledge

Uniform State Content.

This part of the exam will cover other topics that include:

Regulatory authority and responsibility/limitations
Definitions/Documents
License Law and regulations
Compliance

This test was launched in 2013 with the understanding that it would encourage loan officers to have a high level of knowledge of their state-specific laws and regulations for their job.

This entire exam has 125 questions but only 115 are scored. You have three hours to take this exam and it costs $110.

Taking Your Time

Preparing for the Texas Loan Originator exam is a daunting task. But when you take it in stride with the steps listed above it seems much more manageable. Most of your preparation will come from being registered through the mandatory pre-licensing education requirements. A good program will help you find the right exam test prep course that is best for your learning style.

But just because you feel like you ace the pre-license education requirements doesn’t mean you should throw away the idea of taking an exam prep for the test. These exam preps can really solidify your understanding of the material but more importantly offers you strategies that help you ace the exam. Sometimes it’s not even the material that fools us but the way the questions are worded!

When preparing for the exam one of the most critical parts is taking the time to check out practice tests that mimic the real exam. Taking a practice test under real conditions can help you implement certain strategies that work for you and eliminate the ones that don’t! With all this you will be on your way to acing the exam!