Pro Tips

Here are some pointers that will help you overcome the obstacles you may face in proving your capacity.

1. Be a pack rat. Save every piece of paper that documents your income, including:
   • All paystubs (especially the first and last one of any completed project)
   • All W2s received for the prior two years
   • All 1099s received for the prior two years
   • Your complete tax returns for the past two years
2. Respond promptly when asked for additional information. Be prepared to explain:
   • What you do and how long you’ve been doing it
   • What job you’re currently working on and for how long
   • What job you will be working on at the time of closing
   • What jobs you have lined up for the future
   • How you get your jobs (union, referrals, etc.)
   • Why you have multiple W2s and/or 1099s
   • Why you should not be considered self-employed
3. Be proactive. Let your union, the production companies you work for, and the payroll companies you’re paid through know that they may be contacted to provide information about your employment and income.
4. Keep records of all conversations you have with your lender and a checklist of all documents you’ve provided.
5. Don’t start the home-buying process with the idea that you’ll do your house hunting and moving during a hiatus. Can you possibly get approved and closed on a hiatus? Sure, but it makes the approval process more complicated because you will appear to be making perhaps the biggest purchase of your life while you’re “unemployed.”
6. Look for a mortgage lender who understands your industry and can explain it to underwriters and can write a Letter of Explanation (LOX) for your income in a way that underwriters understand.

This last pointer is particularly important. A loan officer who truly understands the nature of the industry you work in will be your best ally and advocate in dealing with the underwriter handling your application.

Many people in the film and television industry speak of the physical stress that they’ve experienced while trying to get approved for a mortgage—all of the effort required to locate proof of their income stability, collate and organize reams of documentation, and deal with correspondence, typically after putting in a 12 or 14-hour day in a studio or on location. But the emotional stress can take an even greater toll.

People in the film and television industry are accustomed to professional rejection. They take auditions and screen tests, and portfolio reviews in stride, because they go with the territory. But being required to jump through hoop after hoop after hoop to prove one’s worthiness in the eyes of mortgage underwriters feels like a personal attack. Being rejected when you know that you are just as qualified to be granted a mortgage as people who have no trouble getting approved feels personal. Such experiences begin to erode one’s self-confidence and sense of self-worth and raise the specter of discrimination and persecution. They create tensions that strain relationships.

Fortunately, the old adage holds true: “forewarned is forearmed.” Knowing what pitfalls lie ahead for film and television folks can ward off a lot of stress and anxiety and increase the likelihood of getting approved for a mortgage.

Questions? Contact Us