Would it be possible to get a mortgage loan for 40-50,000+ the amount of the house and then use the remaking amount of the loan to buy a car? The house is 62,000 and I’m pre-Approved for 120,000 .. could I use the 58,000 to buy vehicles with the same loan?
The lender will have an appraisal done on the home and will only approve a mortgage that is in line with the value determined by that appraisal. Assuming you are paying market value for the home, the lender is not likely to approve a mortgage that is significantly higher than that.
If the actual value of the home were 120,000, then you could likely get a mortgage for a significant portion of that beyond the 62,000 purchase price, but you aren't likely to find a seller willing to give such a discount unless it was a special case such as a family member of yours willing to sell to you at a low price.
Not now. Before the credit crunch in 2008, some mortgage lenders (for example Northern Rock in the UK) were lending up to 125% of the value of the property (though technically the top 30% was an unsecured loan rather than a mortgage). But such practices were one of the main causes of the financial meltdown, and so not only will regulators no longer allow them but also the banks now have no appetite to take on that kind of risk.