Usually a valve does not fail unless there has been a foreign object passed thru it and the spool was forced within the body, then the lands of the spool or valve would be broken or scored and allow oil to leak from the load. The main failure of a valve is external leaks or lack of control or centering due to loose linkage or loose or broken centering spring. There are no O ring seals inside the valve. The only O rings keep oil from leaking out of the valve.
Does the loader or bucket leak down? especailly when loaded? If so and you want to check the valve change the bucket and main lift cylinder hoses at the valve, remeber the lift and dump functions will be reversed.
With a load in the bucket and frame raised take a screw driver or piece of pipe place it against the barrel of the cylinder and listen for a hiss as oil is bypassing the piston within the cylinder.
A story from my past. When I was working for a dealer a fellow came in and asked for a pump, Once priced he decided that wasn't the problem. Then he asked for a control valve, again the price was an obsticle. So asked him what he was fixing, he stated his loader was leaking down, Suggested he "listen" to the cylinders. Yes a cheap packing kit fixed the dropping problem.
Almost forgot to say remember a pump does NOT make pressure it only moves fluid. The pressure is created by applying a resistence to flow.
A failing pump leaks internally and cannot maintain "as new" flow therefore the volume of oil and depending on wear the ability to produced needed pressure will be problem.
The control valve should also contain a relief valve to keep system pressure to a safe level, usually you can hear it if it bypasses. The control valve may also contain load checks, these are check valves to prevent a load from dropping until system pressure is more than the load.