At this point, the loan officer, in consultation with his or her manager, 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 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 little or 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. Occasionally, counselors simply need to explain what information loan officers need to complete a loan transaction. Most of the time loan counselors help clients qualify for a bank-financed mortgage loan. The loan counselor helps the client complete an application, and researches Federal, State, and local government programs that could provide the money needed for the client to purchase the home.