If I was approved for a loan of say 300k and found a home for 230k, would I be able to use the extra 70k to pay itself off month to month until I start my career and start making money?
Being preapproved for $300k generally would require that you have some form of income already. If you buy a home for $230k the lender is not going to lend you $300k and let you pocket the difference. They will generally lend some percentage of the lessor of the sale price or appraised value on the property.
If you found a home for 230K and it appraised for 300K, and you want to pull out the extra equity what you would need to do is:
A) Refi the property…can be done with no seasoning (meaning 1 day after you close),refi, just ask some brokers. Also I know Bank Of America is offering No season refi now but I am not a big fan of banks for lending, I like brokers and lenders. You will be looking at doing what I think its called a Fixed Term Rate refi which is where they will refi the orginally 230K into 1 loan and then the 2nd loan will be the cashback part.
B) you can wait a 3-6months and look for a HELOC on the remaining equity but the rates are higher but you can use what you need.
Now if you do not need the money, I recommend buying at 230K and keep the equity. Wait 6months, get the HELOC so when you find a great deal you will have some cash to jump on it…