What do dentistry and mortgage brokering have in common?

Diana Parker/News-Herald Photo Becky Sharp, left, and Terrie Hoover, of locally owned Eagle Point Mortgage, look over the Dickensian file of a client who's had loans fall through at two mortgage lenders before Stark was able to complete the deal.

"It's like pulling teeth," said Terrie Hoover, of Eagle Point Mortgage, speaking of the difficulty of getting clients' loans completed in an era when skittish lenders are continuously eliminating products and tightening guidelines.

"Things are changing every day," Hoover said.

Still, local mortgage brokers say, with a little perseverance people who want to buy a house can get a mortgage, even in today's market.

"I feel just as many people can qualify for homeownership today that could always qualify for homeownership," said Patti Woodward, of Evergreen Home Loans.

Woodward said she dealt very little in the subprime mortgage market that has proved so disastrous to many mortgage lenders and to the larger economy. Now she's an avid proponent of "slow and steady wins the race."

She cites the example of a client who worked diligently for months rebuilding her credit to get a mortgage with her credit-worthy fiancé. Today the couple is approved for a loan and shopping for a home, Woodward said.

"Maybe some people aren't ready today (to buy a house), but they need to meet with someone so they can find out what they need to do," she said. "They don't have to worry about being judged — that's not what we do."

Eagle Point clients Chuck and Linetta Tasker, who were shopping for a second home in Lake Havasu City, didn't have bad credit, but still ran afoul of lenders' ever-tightening guidelines.

Hoover's partner, Becky Stark, finally was able to complete a loan for the Taskers, and they expected to close on their new home last week.

"Let's face it, there's always issues with home loans," said Chuck Tasker, a 47-year-old Nuevo, Calif., firefighter and swimming pool contractor.

"We thought it was all going to work out (with the original lender), and they wanted more money down. Then we got in with (another lender) and I thought everything was done … They wanted more money down, too," Tasker said. "It just seemed they were nitpicking a lot of little things."

Back to basics

A lot has changed in mortgage lending from only about a year ago, but that's not necessarily bad, mortgage professionals say.

"We're going back to old school processing, which is fine," Hoover said.

Credit scores are more important, and so are sensible down payments.

"(B)borrowers have to have a down payment. You can't get around that anymore," Stark said.

Risky loan products that required no money down and no proof of income are pretty much extinct, Woodward said.

"We're kind of back to basics — mortgage 101," she said. "You have to do it in a different manner to make sure all parties are protected."

Even if some lenders are still fairly lenient when it comes to credit scores, private mortgage insurers aren't, Hoover said. And not being able to qualify for PMI can be a deal-killer if the borrower can't put up at least 20 percent down.

"It's almost like they're looking for reasons to turn loans down," Hoover said. "You might as well get the PMI requirement taken care of before looking for a lender."

Another change that affects homebuyers: Borrowers must now wait five years after a foreclosure before they can buy another home. The requirement used to be three years, Hoover said.

Borrower beware

These days borrowers bear the responsibility of protecting themselves from unscrupulous lenders and shady loan deals.

"A major concern of customers is, 'How much can I qualify for.' But they really need to look further than that. They need to look at the quality of the lender," Stark said.

They can do that by educating themselves and getting references from people they trust.

"Go to a real estate agent and ask for good, reputable lenders. Interview them, get a feel for what they can do, their knowledge, their experience," Stark said.

Woodward also said a trusted real estate agent is key to finding a reliable mortgage lender.

When it comes to both the real estate agent and the lender, "(borrowers) really should feel like they're coming in and getting knowledge and being educated. They should be able to ask questions and feel totally comfortable with the process," Woodward said.

"If a loan officer is just telling you what you want to hear, that's not as good an indicator as one who tells you the truth," Stark said.

Stark and Hoover also recommended the human touch.

"There's so many people who are looking for a lender online, but you can't tell the quality of that lender," Stark said.

"I've heard nightmares of people shopping on the Internet — you don't know who you're dealing with," Hoover said.

In spite of the challenges and potential pitfalls, these mortgage professionals refused to be discouraged by the current housing climate.

"You know what? This market's great. Our market's beginning to stabilize," Woodward said. "Homeownership is still achievable, and I wish more people knew that."

You may contact the reporter at dparker@havasunews.com.