Pre-Approval or come with a deal to bank

[Mark Richardson]

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?

[Cara Lonsdale]

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.