Loan To Value (LTV) Question

[Cliff Hudson]

Asking Price = $120K
Appraised Value Of Property = $100K

LTV = 60% ($60K)
Equilty = 40% ($40K)

For example, the value of property is $100K and bank can only give me a loan of $60K (LTV - 60%) and the seller is asking for $120K, does that mean I've to come out an extra of $20K besides the $40K to make it $20K (Personal) + $40K (Personal) + $60K (Bank) = $120K?

Do banks approve loans based on seller's asking price or bank's appointed appraiser value?