How to get pre-approved, what lenders look at, and how to budget across NYC's price ranges
On a $1.2 million condo with 80% financing, a NYC buyer needs about $240,000 down plus roughly $42,000 to $51,000 in closing costs. A pre-approval letter shows the loan a lender will make, not the cash you need to close. I have walked buyers through pre-approval across Upper Manhattan and Queens for 25 years, and the buyers who budget the cash first are the ones who close.
Pre-qualification is a rough estimate. Pre-approval is a lender's formal review of your documents, and it produces a letter with the loan amount, the rate and any conditions to meet before closing.
Price out each line item:
| $1,200,000 condo, 80% financing | Amount |
|---|---|
| Down payment (20%) | $240,000 |
| Mansion tax (1% bracket) | $12,000 |
| Mortgage recording tax (1.925% of the $960K loan) | $18,480 |
| Title insurance | About $5,000 |
| Attorney, lender and building fees | $6,500 to $15,500 |
| Cash needed at closing | About $282,000 to $291,000 |
After an accepted offer, the order is: inspection (for condos and co-ops, review the building documents with our due diligence checklist), the final mortgage application, an appraisal confirming the property's value supports the loan, then closing.
The mortgage recording tax is charged on the loan, at 1.925% for loans of $500,000 or more. Every extra $100,000 you put down on the $1.2 million condo above lowers the loan by $100,000 and the tax by $1,925. The mansion tax is charged on the price, so a larger down payment does not change it.
| Step | Timeframe |
|---|---|
| Pre-Approval | 1-2 weeks |
| Property Search | 1-3 months |
| Offer & Negotiation | 1-2 weeks |
| Inspection | 1 week |
| Finalizing Mortgage | 2-4 weeks |
| Closing | 1 day |
| Total Timeframe | 3-6 months |
Entry-level to mid-range homes across the five boroughs
3555 Kings College Place #4A
Norwood
16 E 132nd Street #1B
Central Harlem
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License No. 10301213304 · 360 Madison Avenue, 9th Floor, NY 10017
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Content published: February 2026 · Milton Coste · Keller Williams NYC · License No. 10301213304
Entry-level to mid-range homes across the five boroughs
3050 FAIRFIELD Avenue #3F
Spuyten Duyvil
526 W 158th Street #31
Washington Heights
555 Kappock Street #11J
Spuyten Duyvil
Listing information provided courtesy of the Real Estate Board of New York's Residential Listing Service (RLS). Information is deemed reliable but not guaranteed. Sale listings verified. ©2026 REBNY. RLS data displayed by Keller Williams NYC.
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Disclaimer: All information provided in this article is for educational purposes only and does not constitute legal, financial, or real estate advice.
Listing data sourced from the REBNY Residential Listing Service (RLS). Information is deemed reliable but not guaranteed.
Milton Coste is a Licensed Real Estate Associate Broker affiliated with Keller Williams NYC,
360 Madison Avenue, 9th Floor, New York, NY 10017. License No. 10301213304.
Equal Housing Opportunity. This advertisement complies with New York State Department of State regulations
governing real estate advertising. © 2026 Milton Coste. All rights reserved.
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Milton Coste
Licensed Real Estate Associate Broker · Keller Williams NYC
License No. 10301213304 · 360 Madison Avenue, 9th Floor, New York, NY 10017
