6 Reasons to Work with a Brokerage Licensed in Multiple States

Map of the United States
Moshe Farber
15, Sep 2022

Working with the right mortgage brokerage is essential for real estate investors. Mortgage specialists understand the industry’s financial intricacies from inflation to interest rates to the latest market trends. If you want to successfully finance investment properties in different regions, you need a mortgage broker licensed in multiple states by your side.

Remember, each state has distinct mortgage guidelines. For this reason, multi-state mortgage brokers can be powerful partners in growing your business.

This blog post will discuss the benefits of working with a loan officer licensed in more than one state. 

Read on to unlock your full investment potential.

1. Work With Experts Who Have Local Knowledge

While federal laws regulate the mortgage industry, each state follows distinct rules. States observe different mortgage default times and regulations against fraudulent practices such as:

●       Loan flipping: This predatory practice occurs when a loan officer convinces an individual to refinance a mortgage even if it offers no benefit to the person.

●       Negative amortization: This happens when a loan’s principal balance increases because of minimum payments that don’t cover the interest.

●       Prepayment penalty: Some lenders charge this fee if you pay off all or part of your loan before the agreed-upon due date.

Local specialists know the state’s regulations so they can give you sound advice to get your mortgage approved.

2. Save Time and Money

If you want to grow your business across various states, working with multiple brokers may seem like a good idea. However, doing so might complicate the lending process. 

Below are some of the disadvantages of working with multiple brokers rather than one for all of your transactions. 

Credit Score Issues

When you look for a mortgage, organizations will perform a credit score check at least once during the application process — and more for debtor-in-possession (DiP) financing. The more mortgage brokers you work with, the more you open yourself up to additional credit checks.

These specialists can run a soft or hard check, and the latter can mark your record. When a broker fails to get you a mortgage after two hard checks, a new one will be cautious about applying for a mortgage. This system could create a domino effect where one decline might lead to future ones.

Conflicting Advice

Another downside to working with multiple brokers is that they can give you conflicting advice. After all, they might have different points of view on rates, prepayments, and penalties. Some might not even have your best interest at heart.

3. Accelerate Transactions

If you want to spend less time consulting different specialists and more time on your high-value tasks, choose a mortgage broker licensed in multiple states.

If you’re an investor working across multiple states, working with a mortgage brokerage firm with licenses in all areas can help you get approved quickly and with less paperwork. 

A mortgage brokerage that already has your information on file can more quickie process the paperwork and secure a loan submission. 

The faster you get approved, the faster you can close on the deal!

Generally, it takes 30 – 60 days to complete a mortgage transaction, including pre-approval, appraisal, and getting the loan. This process takes longer to complete during high-volume months, and financial issues like a low credit score can prolong it even further.

The best way to accelerate your application is to work with a mortgage broker who has your information, understands your distinct needs, and can find you the best deals that suit your unique circumstances.

4. More Bank Relationships Means More Options for You

A mortgage brokerage that has relationships with banks across the country is able to provide more services and with a wider range of mortgage products. A brokerage with an ever-widening pool of banking relationships will always be adding to the list of products it can provide. That means more options for you! 

Bank relationships across state lines can provide you with an ever-expanding amount of options, including niche mortgage loans that are tailor-fit to your particular needs. 

Also, brokerages that are only in a few states are given lower priority by the banks. The bigger and more far-reaching the brokerage, the more the banks will accommodate the needs of the brokerage’s clientele. 

Most banks have a narrow list of cookie-cutter, one-size-fits-all mortgage options. A small brokerage that has a small number of banking partners in only one or two states won’t have access to as many lenders as a bigger brokerage based in multiple states. 

However, a brokerage like ASTAR Home Capital that has built relationships with lenders across the country has earned the trust of more banks in more states, which means our banks will more readily provide our customers with a greater amount of flexible, niche mortgage loan products. 

Over the past few years, our brokerage has gotten our loan officers licensed in more states and built more relationships with banks across the country, including wholesale mortgage lenders. 

As a result, the amount of mortgage products we can offer our clients has increased substantially.

If you want to get approved for a mortgage quickly and easily, you need a multi-state mortgage brokerage like ASTAR Home Capital! 

Reach out to one of our ASTAR Home Capital mortgage experts today! Email info@astarteam.com or call 888-ASTAR-11 (888-278-2711) to start the loan application process.

5. Purchase Properties in Different States

If you want to invest in multiple properties in different states outside your state of residence, it’s ideal to work with a mortgage professional familiar with the mortgage market in each state. 

Working with an experienced brokerage ensures you can access more lending institutions and loan products to help you purchase properties in various states quickly and easily.

6. Save Time Searching for Mortgage Brokers

Are you looking for a mortgage broker to secure a home loan? 

Working with a brokerage licensed in multiple states means you don’t have to look for a new broker ever time you wish to purchase a new property for residence or investment. If your brokerage is licensed in the state of your next property, you can continue working with the mortgage brokerage you trust that already has your information on file.

Below are some of the traits you should look for in a mortgage broker:

●       Honest: Be wary of mortgage brokers who seem desperate to close loans. They likely have more interest in your business than in helping you out. The best professionals to work with won’t try to get you to commit to more expensive loans if unnecessary.

●       Detail-oriented: Mortgages are complex financial transactions. They involve numerous moving parts and fine details that an inexperienced broker can miss. Before choosing a loan officer, ask for a list of references and ask about each reference’s experience with the broker.

●       Transparent: Mortgage brokers deserve to be compensated appropriately and a trustworthy broker will have no trouble discussing their fees openly and honestly. Be on guard against professionals who purposely avoid talking about their fees.

Finding the ideal broker can be overwhelming. Fortunately, working with a mortgage broker licensed in multiple states saves you the headache of having to look for reliable partners in multiple locations.

Work With a Multi-State Mortgage Brokerage Firm Now

Working with a mortgage broker licensed in multiple states offers various benefits, including local knowledge, savings of time and money, faster transactions, successful purchases, and reliable services across the board.

At ASTAR Home Capital, we want to help you make sound investment choices by providing you with the best mortgage options and open communication. Request a free consultation now to begin the mortgage application process and diversify your investment portfolio.

Want to hear that wonderful phrase, “your loan is approved,” sooner rather than later? 

Reach out to one of our ASTAR Home Capital mortgage experts today! Email info@astarteam.com or call 888-ASTAR-11 (888-278-2711) to start the loan application process.

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