At this point, the loan officer, in consultation with company managers, decides whether or not to grant the loan. A loan that would otherwise be denied may be approved if the customer can provide the lender appropriate collateral. Whether or not the loan request is approved, the loan officer informs the borrower of the lender's decision. Loan counselors meet with consumers who are attempting to purchase a home or refinance debt, but who do not qualify for loans with banks. Often clients rely on income from self-employment or government assistance to prove that they can repay the loan.
Counselors also help to psychologically prepare consumers to be homeowners and to pay their debts.
Counselors frequently work with clients who have no experience with financial matters. Loan counselors provide positive reinforcement along with the financial tools needed to qualify for a loan. This assistance may take several forms. Some clients simply need help in understanding what information loan officers need to complete a loan transaction. Most clients, however, need loans and grants for a down payment sufficient to qualify them for a bank-financed mortgage loan.