Free practice test

Loan Officer Practice Test

Check what you know about the loan officer job with 15 free questions and instant explanations.

Updated By the Career Education Institute Curriculum Team
About this practice test

15 multiple-choice questions on loan officer knowledge, safety and vocabulary. Submit to see your score and explanations, or open any question’s answer as you go. Nothing is saved or shared.

Question 1 of 15DTI compares:
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Answer: Monthly debts to gross income. Debt-to-income ratio.

Question 2 of 15LTV compares:
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Answer: Loan amount to property value. Loan-to-value ratio.

Question 3 of 15Mortgage loan originators are licensed through:
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Answer: NMLS. The Nationwide Multistate Licensing System.

Question 4 of 15A rate lock:
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Answer: Guarantees a rate for a period. It holds the rate.

Question 5 of 15Underwriting is:
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Answer: Evaluating loan risk. Underwriters approve or deny.

Question 6 of 15Which term matches this definition: “Loans in progress.”
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Answer: Pipeline. Pipeline: Loans in progress.

Question 7 of 15What does “FHA loan” mean?
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Answer: A loan insured by the Federal Housing Administration.. FHA loan: A loan insured by the Federal Housing Administration.

Question 8 of 15Which term matches this definition: “Nationwide Multistate Licensing System.”
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Answer: NMLS. NMLS: Nationwide Multistate Licensing System.

Question 9 of 15What does “LTV” mean?
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Answer: Loan-to-value ratio.. LTV: Loan-to-value ratio.

Question 10 of 15Which term matches this definition: “A form detailing final loan terms and costs.”
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Answer: Closing disclosure. Closing disclosure: A form detailing final loan terms and costs.

Question 11 of 15What does “PMI” mean?
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Answer: Private mortgage insurance.. PMI: Private mortgage insurance.

Question 12 of 15Which term matches this definition: “Debt-to-income ratio.”
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Answer: DTI. DTI: Debt-to-income ratio.

Question 13 of 15What does “VA loan” mean?
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Answer: A loan guaranteed by the Department of Veterans Affairs.. VA loan: A loan guaranteed by the Department of Veterans Affairs.

Question 14 of 15Which term matches this definition: “An account for taxes and insurance.”
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Answer: Escrow. Escrow: An account for taxes and insurance.

Question 15 of 15What does “Preapproval” mean?
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Answer: A lender’s conditional commitment based on a review of credit and finances.. Preapproval: A lender’s conditional commitment based on a review of credit and finances.

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