Consider this excerpt from Nicolaus Hunnius' Epitome Credendorum:
321. e. God has, therefore, in the act of election, considered no other circumstance, but that of the Lord Jesus having been received along with his merits, and righteousness, into the hearts of some men. And these men having been entirely reconciled to Him, God has elected them unto eternal life. —Whilst on the other hand He considered that, with some men no faith would be found, who must accordingly be said to have rejected the Lord Jesus in unbelief, — that they would not partake of his righteousness and his merits, and therefore still remain in their sins and under the burden of the divine wrath, — for all these reasons they have been found without Christ, and have therefore not been elected to eternal life.
322. This it is that constitutes the difference between those, whom God has elected, and those whom He has rejected, viz : that some have been found in Christ, which has not been the case with the rest; just as the same qualities serve to constitute the distinction between those, who have been saved, and those who have been damned. „He that believeth on him (the Son) is not condemned: but he that believeth not is condemned already, — he that believeth on the Son hath everlasting life and he that believeth not the Son shall not see life; but the wrath of God abideth on him," John. 8, 18, 36.
323. f. Thus God, in that He has elected the believing of mankind, and rejected the unbelieving from among them — has been considering especially man's faith. — This is not to be understood as if this faith could, by itself, give unto any man such a worth and value, by the considering of which God might be induced to the work of mercy, and thereupon to elect this individual: no, faith is only to be considered as a means, by the exercise of which the Lord Jesus Christ is united with man, and in consequence of which union, Christ's innocence, righteousness and merits (which we have shown to be the only qualities, which are considered in the act of election) are applied and appropriated unto man. Which means nothing else, than that we are justified before, and saved by God, not for the sake of man's faith and his good qualities alone , but for the sake of that faith, which has laid hold of the merits and the righteousness of the Lord Jesus, and by which man desires to be justified and saved. (Hunnius, Nicolaus. "Ch. XIV: On the Election of Grace." Epitome Credendorum: Containing a Concise and Popular View of the Doctrines of the Lutheran Church. Trans. Paul Edward Gottheil. Nuremberg: U.E. Sebald, 1847. 90-91. Print.)
What N. Hunnius is saying here is that we are elected in view of our faith. Yes, in view of our Spirit-worked faith (which lays hold of the merits of Christ).
What does this mean in terms of universal justification? Well, I propose that one falls into error when saying that the whole world is justified regardless of faith; that is, that those are justified who never have nor will have faith. If the whole world is justified regardless of faith, then it should hold true that the whole world is part of the elect. But we wouldn't say that the whole world is numbered among the elect, right? If we mess up justification then we surely mess up election. My favorite Scripture when it comes to election and justification is Romans 8:30. It is so succinct, clear, and dogmatic:
And those he predestined, he also called; those he called, he also justified; those he justified, he also glorified.
If God has justified all men, then all men have been called and given faith (which alone justifies; Ap IV: 67 and 78) in the Gospel; if they have been justified then they have been predestined to eternal life. Now, have all men been predestined to eternal life? Have all men even heard the Gospel (been called)? Surely no Lutheran would say such absurdities. Likewise, I contend that it's erroneous to say that all men have been justified by God. If one does make such a claim, then he also has to say that all have been elected to eternal life by God. And nothing can change our election, God's will, right? If all are justified, then all are predestined, and finally all are heaven bound -- that's the logical conclusion. This is what happens when we go overboard trying to combat limited atonement.