This is a YouTube video titled "If I’m Approved for More, Can I Pocket 💸 the Difference?" containing a monologue by Cory Doctorow explaining government perspectives on mortgage pre-approval amounts versus actual house purchase prices, focusing on loan limits and financial risk. The content is educational and addresses common questions about home buying and financing.
A good question came in today. If I'm pre approved for X amount, can I buy a house for a little bit less than that and pocket the difference? A common option that people think of is I want to cover my moving expenses or rehab the house when I move in. It's a great idea but not quite how the government sees it. The government recognizes the lower of the appraisal amount or how much you're purchasing the house for. The reason being they don't want to be upside down or underwater in the house. So the way the government mind works is they want to look at say the person's Pre approved for 400,000 but they're buying a house at 350. Sure they could have bought a bigger house but the house that they're buying, that's all that they're focused on. So they don't want to loan out $400,000 in that scenario. Then what happens if the person runs into financial issues? They default. The government now owes $400,000 on a house that's worth 350. They don't want to put themselves in a bad leverage situation.
