Pre-Approval or come with a deal to bank

5 Replies

Should I go to multiple local banks to seek pre-approval on a loan prior to having a deal or is it better to come in with an already analyzed deal under contract? I’ve heard differing opinions on this and was hoping to get some input. I have good credit and some cash to put down but don’t want to start getting a lot of inquiries against me until it’s time. I also understand having the approval number in mind when analysis gets properties. So I’m torn. What does the bank prefer when starting out?

In many states, it is required to have a pre-qual to present with an offer. So, Seller's won't even look at your offer unless it is accompanied by either a POF or a pre-qual from the bank/lender.

Additionally, inquiries that are done for the same purpose within a short period of time are not supposed to count against you.  The credit burueaus usually count this as 1 "hit".  So, as long as it is all within a short period of time, you should be okay. 

Alternatively, you can pull your own tri-merge credit report and FICO score, and present to the different lenders for their evaluation.  They will obviously have to pull you r credit eventually, but if you are just shopping the loan, your pulled credit should suffice for them to quote you a rate and terms.

When it comes to commercial RE, I would analyze the deal and make sure it makes sense before moving forward to presenting it to the lender.