A few questions regarding smaller mortgages

[Account Closed]

Hi BP, 

After finding a great opportunity with my mentor, the realtor could not secure a loan for 40k, Meaning, her contacts did not bother calling me to get started.  I want to leverage credit and buy multiple homes rather than buying one in cash. 

My questions are as follows:

-Do I need to secure a loan in the state where i'm buying the property or can I work local?

-Would joining a smaller bank/credit union require that I 'use' this bank and transfer significant money to it for x months before applying for the loan?

-I would like to estimate on what such a loan would cost. The realtor mentioned it would be b or c grade if the loan is under 50k. What's the best way to get even a rough figure of the loan?  

-If 40K mortgage is too 'small',  what's the minimum price range I should be looking at for a decent interest rate? 

This information would help me scope out properties with a plan.  If it helps, I have virtually no debt and a 835+ FICO.