Are you gearing up to take the National Mortgage Licensing System and Registry (NMLS) exam? If so, you might be feeling overwhelmed by the prospect of passing this notoriously difficult test. However, with the right preparation and mindset, you can increase your chances of passing the exam on your first try.
As an approved course provider, we’ve helped countless professionals achieve their licensure and we’ve put together 10 tips to help you do the same.
1. Complete a High-Quality Mortgage Pre-Licensure Education (PE) Course
It’s mandatory to complete a 20-hour course before taking the NMLS exam, but the bare minimum won’t suffice. A high-quality PE course is an essential foundation for success. Not only will it help you prepare for the exam, but it will also equip you with the knowledge and skills to be an effective MLO.
2. Take an NMLS Exam Prep Course
Practice makes perfect, but practicing perfectly is even better. Invest in an NMLS exam prep course and other forms of test prep materials like practice exams or flashcards to help you practice effectively. This will increase your chances of passing the exam on your first attempt.
3. Understand the NMLS Test Breakdown
Knowing the breakdown of the NMLS test is essential to your success. The exam consists of 120 multiple-choice questions covering several areas including federal mortgage-related laws, general mortgage knowledge, and ethics. Understanding the weight of each section will help you focus your preparation accordingly.
4. Read Each Question Twice
Reading each question twice will help you understand the question completely, ensuring that no aspect of the question is missed. Multiple-choice tests are detail-oriented, so understanding the question is essential.
5. Use Your Test-Taking Time Wisely
You can revisit questions, so if you’re unsure about a question, skip it and revisit it later when you’ve completed most of the exam. With fewer questions remaining, you’ll be able to better manage how much time to spend on each remaining question.
6. Answer Every Question
There are no additional penalties for answering incorrectly on the NMLS test, so ensure that every question is answered.
7. Watch Out for Negatives
Positive answers are more likely to be correct than negative ones. Also, be on the lookout for questions containing double negatives, as they need to be read carefully.
8. Use the Process of Elimination
Eliminate the answers you know for a fact aren’t correct, and move on to the remaining answers. This will help you save time and increase your accuracy.
9. Understand Mortgage Laws & Regulations
Having a thorough understanding of mortgage laws and regulations is a must, not only for the exam but for the real world. Disregarding mortgage laws can harm your clients’ financial future and your own. MLOs can be legally and financially held responsible for damages incurred by negligent or malicious business practices.
10. Rest the Night Before the NMLS Test
Getting 7-9 hours of restful sleep will help you retain information and fend off anxiety. This applies to the night before the exam as well.
In conclusion, passing the NMLS exam is challenging, but with the right preparation and mindset, you can increase your chances of passing the exam on your first try.
Remember to invest in high-quality pre-licensure education and exam prep courses, understand the breakdown of the exam, use your test-taking time wisely, and get plenty of rest before the exam. Best of luck!