The current real-estate market has been and continues to discriminate against military service members when comparing a government-backed home loan provided by Veterans’ Affairs to a conventional loan or cash offer. There are existing misperceptions that veteran’s or active-duty service members are not qualified, responsible, and/or may be too risky because they are not required to put a single dollar down as a down-payment (Heaney, 2018). Combine these misunderstandings with myths that sellers must pay closing costs, VA appraisals come in lower than conventional loans, and a nationwide home shortage due to the pandemic, service members are facing inequality and for lack of a better term, discrimination.

When my wife and I began looking for our first home earlier this year, we were faced with the same issues as most people around the country: shortage of available inventory, home prices reaching record-highs, and the insane amount of offers. What we did not expect to deal with was having our VA home loan offer so easily dismissed any time it got in front of an inexperienced and/or ignorant listing agent. Luckily for us, we had an amazing real estate agent and mortgage lender that would work together to not only put together an attractive offer that would compete with the masses, but they would go the extra mile to remove hurdles and ensure that we stood a fair and equal chance to own a home like everyone else. Their combined approach to put my wife and I first is known as servant leadership; it is about focusing on identifying and meeting the needs of others, especially those who are less privileged (Northouse, 2018).

After our third offer had gotten beat out by twenty-four offers, yes you read that right, 24, we knew this process was not going to be quick nor was it going to be easy. Our mortgage lender reassured us that our offer was amazing and that he was going to personally give the listing agent a phone call and walk through our presented offer so there were no hurdles, misperceptions, and he/she understood it in full to make a financially educated decision when it came time to review with his/her clients. His initiative to go out and educate these listing agents who are operating off outdated information in support of us as first-time home buyers, as well as a veteran family, really exemplified the many characteristics of a servant leader.

People are so quick to thank veteran’s and service members for their service during Memorial Day, Independence Day, and Veterans Day, yet when it comes to giving back in the form of equality in a home loan, we fall short (Black Rifle Coffee Podcast, 2021, Minute 27:11-27:28). Our lender primarily displayed empathy for me and the veteran community by understanding the difficulties that we regularly face. Secondly, he exhibited awareness and persuasion by dedicating his time to dispelling VA home loan myths and educating the industry during his weekly YouTube R.E.D. Friday episodes (Sean Herrero, 2021). Lastly, he is committed to the growth of people. He is a constant advocate for helping people make educated decisions, whether that is with a VA home loan, refinance, improving your credit score, or making overall good financial decisions.

So, if you or someone you know is looking to play in the real estate games, make sure you have people in your corner who are willing to lead in ways that serve the great good of followers, the organization, the community, and/or society at large (Northouse, 2018).

References

Black Rifle Coffee Podcast. (2021, August 16). Free Range American: Ep 154 Sean Herrero – How to use your V.A. Home Loan [Video]. YouTube. https://www.youtube.com/watch?v=vciAdZMBcr8

Heaney, A. (2018, September 10). “Saving Private Ryan from discrimination”. Center for Law and Military Policy. https://centerforlaw.org/sound-off/f/saving-private-ryan-from-discrimination

Northouse, P. G. (2018). Leadership: Theory and Practice (8th ed.) [VitalSource Bookshelf version]. vbk://9781506362298

Sean Herrero. (2021, June 9). What is different about a VA Loan Appraisal? [Video]. YouTube. https://www.youtube.com/watch?v=AdwBMIMLMuk