When, why, and how to get pre-qualified and preapproved for a mortgage

By Cait Etherington | From Get To Know Friday, March 14, 2025

113 Carroll Street, #4 (SERHANT) | https://cityrealty.com/n/I2715146

If you're a first-time homebuyer, you might assume that the first step is finding a few desirable listings and attending open houses. In fact, before you start viewing properties or connecting with agents, you should first get prequalified and, better yet, preapproved for a mortgage.

Whether you're casually looking or ready to buy immediately, getting prequalified or preapproved for a mortgage should always be your first step in the home-buying process. In the current market, this step may be particularly important as it can help clarify what you can afford before exploring the current housing market. This article explains the difference between the two steps, when to take them, and which materials to have on hand.

Mortgage Prequalification Versus Preapproval

Prequalification is usually the first step in the home-buying journey. Typically, prequalification is based on your declared income, a credit check, basic banking information, and the amount of money you plan to bring to the table. As a result, prequalification often takes just an hour or two to complete. While there is no guarantee that you will be approved for a mortgage down the line, prequalification can confirm your eligibility for a mortgage and offer a ballpark estimate of how much financing you can likely acquire.

By contrast, preapproval is as close as you can get to being approved for a mortgage without having a purchase contract. Preapproval is also a much longer and more complicated process, which often takes up to two weeks and can take longer. In addition to providing recent tax returns and W-2s, if you earn all or part of your income from contract work, you’ll also be expected to provide 1099s. Notably, most lenders will want to see 1099s for the past three years and proof that you’re currently earning money from your contract work. In order to prove that you’re currently making money from your contract-based work, be prepared to hire a certified accountant to complete a year-to-date profit-and-loss statement.

Beyond being able to provide evidence of all sources of income, if you recently received any financial gifts to help with a down payment, during the preapproval process, underwriters will want to trace the origin of these gifts. In some cases, they may even require you to ask generous relatives and friends to provide bank statements to ensure the gifts have come from a legitimate source and won’t need to be paid back now or at any time in the future.

When to Get Prequalified or Preapproved

If you're just looking, it is generally better to get prequalified first. If you want to buy in the next three months, however, you may want to skip prequalification and get preapproved. However, bear in mind that preapprovals only last for 90 days. After that time, lenders will ask you to resubmit all or most of the paperwork you already submitted to initiate the process.

Why to Get Prequalified or Preapproved

One of the first questions agents ask when you make contact is whether you're prequalified or preapproved for a mortgage. If you're not, many agents will ask you to go through this step first, as it is the best way for an agent to know you're serious about buying and determine what property price range you can afford.

How to Get Prequalified or Preapproved

The first step is to research and choose a lender (i.e., any bank or credit union that offers mortgages). Notably, there is no need to go with your current bank if they don't offer the best mortgage rates or terms. If you are finding the process overwhelming, you may opt to work with a mortgage broker instead (i.e., someone who matches borrowers with potential lenders).

Once you’ve settled on a lender or started to work with a mortgage broker, you’ll need to get your paperwork together. For preapproval, you'll need to share your declared income, authorize a credit check, provide basic banking information (e.g., current balances), and share information about how much you plan to put down and hope to borrow. For prequalification, you'll need to provide all the aforementioned information, as well as recent pay stubs, bank account statements, W-2s, and tax returns for the past two years (be prepared to go back further if you run your own business or engage in contract work), and anything else the underwriters for the lender request (e.g., signed letters from anyone who has gifted you money for a down payment verifying that the money is a gift, not a loan).

View from a new condo at 140 Moffat Street in Bushwick

Select listings under $1 million with open house showings this weekend

Plaza 400, #24C
$999,999

Beekman/Sutton Place | Cooperative | 2 Bedrooms, 1.5 Baths | 933 ft²

Open House: Sunday, March 16

Plaza 400, #24C (Next Stop NY)

From the Listing: Experience luxury living in this stunning 2 bedroom, 1.5 bathroom residence, meticulously renovated to perfection. The pi ce de r sistance is the expansive balcony, offering breathtaking views of the iconic Empire State Building and Chrysler Building. Imagine sipping your favorite wine, that was chilled to perfection in the wine fridge, as you watch the sunset over the Manhattan skyline. See floor plan and full details here.

113 Carroll Street, #4
$999,000

Carroll Gardens | Cooperative | 2 Bedrooms, 1 Bath

Open House: Sunday, March 16

113 Carroll Street, #4 (Serhant)

From the Listing: Perched on the top floor, this sun-drenched 2-bedroom gem captures the timeless charm of Carroll Gardens with six oversized windows pouring in natural light. The inviting open-concept living and dining area features a working wood-burning fireplace, hardwood floors, and a modern kitchen with a butcher block island, dishwasher, and ample storage. The king-sized primary bedroom offers a peaceful retreat, while the second bedroom-perfect as a guest room or office-boasts oversized windows. See floor plan and full details here.

321 East 54th Street, #2BC
$999,000

Midtown East | Cooperative | 2 Bedrooms, 2 Baths

Open House: Sunday, March 16

321 East 54th Street, #2BC (Simple Real Estate)

From the Listing: This warm and welcoming 2 bed, 2 bath is a stand out with its generously-sized, windowed bonus room offering the flexibility and extra space every New Yorker cherishes. With an updated kitchen opening into a proper dining area that flows seamlessly into the spacious south facing living room making this charming space equipped for entertaining. Hardwood floors, 9' beamed ceilings and two ensuite bathrooms complete this prewar home! See floor plan and full details here.

Grosvenor Atterbury, #2H
$998,000

Forest Hills | Cooperative | 3 Bedrooms, 2 Baths

Open House: Sunday, March 16

150 Burns Street, #2H (DGSIR Realty)

From the Listing: Step into the architectural style of Grosvenor Atterbury in this beautiful prewar building. The lobby welcomes you with flagstone flooring and stained glass windows. This contemporary, renovated 3-bedroom, 2-full-bath, sun-kissed corner apartment faces the private park and is just steps from the Community House—truly a dream come true. Gleaming hardwood floors, a chef’s kitchen with an open counter to a bright, spacious living room, and serene views of the greenery complete the picture. See floor plan and full details here.

Eastview House, #17H
$980,000

Lenox Hill | Cooperative | 2 Bedrooms, 1 Bath

Open House: Sunday, March 16

Eastview House, #17H (Sothebys International Realty)

From the Listing: Welcome to this stunning two-bedroom, one-bathroom co-op located in the East View House in Lenox Hill. This rarely available 'H' Line apartment boasts sun-drenched living spaces with East and West exposures. See floor plan and full details here.

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Macon on the Park, #4B
$975,000

Bedford-Stuyvesant | Condominium | 2 Bedrooms, 2 Baths | 872 ft²

Open House: Sunday, March 16

Macon on the Park, #4B (Corcoran Group)

From the Listing: Welcome to Macon On The Park! One boutique condo with two buildings and a total of 14 units. Located directly across the street from Saratoga Park which is known for its mature sycamore trees and just had a complete overhaul of its playground and facilities. See floor plan and full details here.

334 Union Street, #3
$926,000

Carroll Gardens | Condominium | 2 Bedrooms, 1 Bath | 759 ft²

Open House: Sunday, March 16

334 Union Street, #3 (Compass)

From the Listing: Welcome to 334 Union St, #3 — a tastefully renovated two-bedroom, one-bath condo within a charming townhouse. Located in prime Carroll Gardens with easy access to transportation, restaurants, parks, and the endless amenities that define the neighborhood. This recently renovated floor-through apartment has the modern conveniences you're looking for including AC, in-unit washer/dryer, dishwasher, and a voice intercom virtual doorman for security. See floor plan and full details here.

The Amherst, #3R
$925,000

Lenox Hill | Cooperative | 2 Bedrooms, 1 Bath | 975 ft²

Open House: Saturday, March 15

The Amherst, #3R (Douglas Elliman Real Estate)

From the Listing: Welcome home to Residence 3R at the Amherst Cooperative at the corner of East 74th Street and 1st Avenue. This mint, spacious, and quiet 2-bedroom oasis is a rare find. You'll enjoy beautiful "treetop" views and plenty of natural light. See floor plan and full details here.

The Essex House, #806
$910,000

Turtle Bay/United Nations | Cooperative | 2 Bedrooms, 1.5 Baths | 1,100 ft²

Open House: Saturday, March 15

The Essex House, #806 (Douglas Elliman Real Estate)

From the Listing: Unique opportunity to make this sunlit, gracious two bedroom, two bathroom apartment, your new home. On quiet tree-lined 41st Street with 2 landmark parks and playgrounds, this apartment features south and west exposures, high ceilings, hardwood floors, and a large dining room which makes it perfect for living and entertaining. The generously proportioned living room and the second bedroom face south, and the master bedroom has a western exposure along with 2 large closets and an en-suite bathroom. See floor plan and full details here.

Parker 72nd, #12G
$895,000

Lenox Hill | Cooperative | 2 Bedrooms, 1 Bath | 980 ft²

Open House: Sunday, March 16

Parker 72nd, #12G (Compass)

From the Listing: Apartment Highlights:Perched on a high floor, this sun-drenched two-bedroom apartment overlooks the serene, pin-drop quiet courtyard, with all windows facing south. Designed for both comfort and functionality, this turn-key apartment’s living space is thoughtfully arranged into three distinct areas: a cozy sitting area, a dedicated dining space, and a stylish breakfast bar. The well-designed breakfast/bar area, conveniently located just outside the kitchen, enhances both daily living and entertaining. A fireplace in the dining area adds warmth and charm to the home. See floor plan and full details here.

The Blair House, #10J
$895,000

Midtown East | Condominium | 2 Bedrooms, 1 Bath

Open House: Sunday, March 16

The Blair House, #10J (Compass)

From the Listing: A wall of Eastern facing windows framing lovely cityscape views welcome you to this sun-splashed and pin-drop-quiet junior four home. Currently converted to a two bedroom, the generous layout offers an oversized living room with a separate dining area. The low monthlies make this the perfect home or investment property. See floor plan and full details here.

Carlton Regency South, #3G
$895,000

Murray Hill | Cooperative | 2 Bedrooms, 1.5 Baths

Open House: Sunday, March 16

Carlton Regency South, #3G (Corcoran Group)

From the Listing: Versatility, sophistication & light - get it all at 137 East 36th St. #3G. Originally a junior 4, this incredible home was carefully converted into a true 2 bed, 1.5 bath in the coveted and full-service Carlton Regency. Bathed in natural light, this corner-unit home is wrapped with large windows providing unobstructed views of Lexington Avenue, creating warmth and comfort throughout. See floor plan and full details here.

2 Tudor City Place, #8KS
$799,000

Turtle Bay/United Nations | Cooperative | 2 Bedrooms, 1 Bath | 900 ft²

Open House: Sunday, March 16

2 Tudor City Place, #8KS (Douglas Elliman Real Estate)

From the Listing: Welcome to apartment 8KS, a coveted corner unit in one of Tudor City's most sought-after co-ops. This exceptional 2-bedroom, 1-bathroom home boasts a spacious floor plan highlighted by a grand 23-foot-long living room and abundant natural light from its southern and western exposures. The thoughtfully renovated kitchen is equipped with stainless steel appliances, including a dishwasher, and features a cozy nook for casual dining. See floor plan and full details here.

54 East 8th Street, #3E
$735,000

Greenwich Village | Cooperative | 2 Bedrooms, 1 Bath

Open House: Sunday, March 16

54 East 8th Street, #3E (Compass)

From the Listing: Welcome to 54 East 8th Street, where classic village vibes meet modern living in this sun-soaked, south/east-facing 2-bedroom, 1-bathroom co-op. Tucked in the heart of iconic Greenwich Village, this generously sized home offers a perfect blend of style and functionality. See floor plan and full details here.

149 Clinton Avenue, #2C
$700,000

Clinton Hill | Cooperative | 2 Bedrooms, 1 Bath

Open House: Sunday, March 16

149 Clinton Avenue, #2C (Compass)

From the Listing: Brightened by multiple over-sized windows, this lovely corner-unit two-bedroom apartment is situated in a small, well-managed coop on the border of Fort Greene and Clinton Hill. While located around the corner from some of the neighborhood’s best restaurants, shops, and services, you'll also enjoy living on a beautiful and historic tree-lined block. See floor plan and full details here.

382 Prospect Place, #15
$699,000

Prospect Heights | Cooperative | 2 Bedrooms, 1 Bath

Open House: Sunday, March 16

382 Prospect Place, #15 (Corcoran Group)

From the Listing: Sweet Disposition! Welcome to this sunlit, impeccably maintained two-bedroom home nestled on picturesque Prospect Place in the heart of Prospect Heights. Just two flights up in a charming pre-war cooperative, this bright and incredibly quiet, 2-bedroom one bath home boasts three exposures, filling the space with natural light throughout the day. See floor plan and full details here.

Hudson View Gardens, #M43
$665,000

Washington Heights | Cooperative | 2 Bedrooms, 1 Bath | 1,100 ft²

Open House: Sunday, March 16

Hudson View Gardens, #M43 (Corcoran Group)

From the Listing: Bright, open and with beautiful views, what more could you want from a 2-bedroom home? Apartment M43 sits on the top floor of one of the walk-up buildings in enchanted and desirable Hudson View Gardens. Freshly painted and with the original pre-war details still intact, you won't want to miss seeing this one. See floor plan and full details here.

Morningside Gardens, #4A
$650,000

Morningside Heights | Cooperative | 2 Bedrooms, 1 Bath | 950 ft²

Open House: Sunday, March 16

Morningside Gardens, #4A (Corcoran Group)

From the Listing: Beautifully renovated move in ready two Bedroom for sale, located in an oasis of Morningside Heights appropriately called Morningside Gardens. This apartment, boasts 9-foot ceilings and open layout giving you the terrific ability to entertain in comfort while enjoying the beautiful city sunsets. The apartment has ample storage space including 9 closets! See floor plan and full details here.

1 Station Square, #315
$639,000 (-5.8%)

Forest Hills | Cooperative | 2 Bedrooms, 2 Baths

Open House: Saturday, March 15

1 Station Square, #315 (DGSIR Realty)

From the Listing: Unique 2 bedrooms 2 bath apartments located in historic Forest Hills Gardens looking over beautiful Station Square. Stylish renovations done with taste in pristine condition. Open concept kitchen/living room.Maintenance includes all utilities {gas. electricity) Pet friendly across from LIRR, subways and buses. Shops and restaurants around the corner.Private parking with a permit $288 a year. Iconic West Side Tennis Club offering tennis, pool and dinning membership. See floor plan and full details here.

234 East 35th Street, #3R
$550,000 (-8.3%)

Murray Hill | Cooperative | 2 Bedrooms, 1 Bath

Open House: Sunday, March 16

234 East 35th Street, #3R (Compass)

From the Listing: Experience unparalleled comfort and convenience in this meticulously renovated two-bedroom, one-bathroom home, located in a charming two-building boutique cooperative in Murray Hill. Just two flights up, this completely transformed and renovated, this bright and airy home boasts refinished hardwood floors and high ceilings, creating an open and inviting atmosphere. The spacious corner living room is a standout, featuring a striking stone fireplace, an abundance of closet space, and windows on two sides that flood the room with natural light. See floor plan and full details here.

River Point Towers, #8H
$528,888 (-1.9%)

Spuyten Duyvil | Cooperative | 2 Bedrooms, 2 Baths | 1,200 ft²

Open House: Sunday, March 16

River Point Towers, #8H (R New York)

From the Listing: New Year, New Price, New Home! Maintenance includes Seasonal Heated Pool, Central Heat & Air Conditioning, Gas, Electric, Water, Cable and Internet too! See floor plan and full details here.

The Whitehall, #21R
$360,000 (-4%)

Spuyten Duyvil | Cooperative | 1 Bedroom, 1 Bath | 994 ft²

Open House: Sunday, March 16

The Whitehall, #21R (Brown Harris Stevens Residential Sales LLC)

From the Listing: This beautifully refreshed Junior 4 apartment in The Whitehall is a true gem. It features newly installed floors, stainless steel kitchen appliances, an updated countertop and sink, and a refurbished bathroom, all designed to impress. Every window offers breathtaking views of the Hudson River, complemented by a private balcony off the living room where you can enjoy the stunning vistas. See floor plan and full details here.

505 East 82nd Street, #1C
$355,000

Yorkville | Cooperative | Studio, 1 Bath

Open House: Sunday, March 16

505 East 82nd Street, #1C (Corcoran Group)

From the Listing: This bright and cheerful south-facing studio offers charming views of beautiful 82nd Street and has been thoughtfully renovated. As you enter, you'll find two spacious closets in the entry foyer, along with a separate dressing room providing even more storage. The open living area features a Murphy bed, allowing you to easily create distinct spaces for both living and dining. See floor plan and full details here.

The Roger Morris, #1
$350,000

Washington Heights | Cooperative | 2 Bedrooms, 1 Bath

Open House: Sunday, March 16

The Roger Morris, #1 (Compass)

From the Listing: Welcome to your new home at 474 W 158th St, a charming co-op in Washington Heights. This delightful residence offers two bedrooms and a windowed bathroom and kitchen, perfectly designed for comfort and convenience. The high ceilings create an airy and open atmosphere throughout the residence.Northern facing on an elevated first floor you won't see heads passing by your windows and you'll get great natural light throughout the day. See floor plan and full details here.

80 Winthrop Street, #5V
$260,000

Prospect Lefferts Gardens | Cooperative | Studio, 1 Bath

Open House: Sunday, March 16

80 Winthrop Street, #5V (Corcoran Group)

From the Listing: New to the market. Large Studio with sunlight in Prospect Lefferts Garden. This sunny, large, south-facing studio features a windowed kitchen, great closet space, and a wonderful view. See floor plan and full details here.

Would you like to tour any of these properties?

This is your member's center

In this article:

Mortgage Prequalification Versus Preapproval

When to Get Prequalified or Preapproved

Why to Get Prequalified or Preapproved

How to Get Prequalified or Preapproved

Select listings under $1 million with open house showings this weekend

Plaza 400, #24C
$999,999

113 Carroll Street, #4
$999,000

321 East 54th Street, #2BC
$999,000

Grosvenor Atterbury, #2H
$998,000

Eastview House, #17H
$980,000

Select which properties are of interest to you:

Macon on the Park, #4B
$975,000

334 Union Street, #3
$926,000

The Amherst, #3R
$925,000

The Essex House, #806
$910,000

Parker 72nd, #12G
$895,000

The Blair House, #10J
$895,000

Carlton Regency South, #3G
$895,000

2 Tudor City Place, #8KS
$799,000

54 East 8th Street, #3E
$735,000

149 Clinton Avenue, #2C
$700,000

382 Prospect Place, #15
$699,000

Hudson View Gardens, #M43
$665,000

Morningside Gardens, #4A
$650,000

1 Station Square, #315
$639,000 (-5.8%)

234 East 35th Street, #3R
$550,000 (-8.3%)

River Point Towers, #8H
$528,888 (-1.9%)

The Whitehall, #21R
$360,000 (-4%)

505 East 82nd Street, #1C
$355,000

The Roger Morris, #1
$350,000

80 Winthrop Street, #5V
$260,000

This is your member's center

In this article:

Mortgage Prequalification Versus Preapproval

When to Get Prequalified or Preapproved

Why to Get Prequalified or Preapproved

How to Get Prequalified or Preapproved

Select listings under $1 million with open house showings this weekend

Select which properties are of interest to you:

Select which properties are of interest to you:

Listings in this article

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