Banker deliberately lowers the valuation of a property?

[CL Ziegler]

Hi everybody,

I’m closing in a week on a house and today I spoke with my banker who said something which left me scratching my head.

First, I’m buying the property well below its value. The purchase price is 132,400 and I am borrowing that full amount due to being able to use a second property as collateral to avoid using cash. (This was the banker’s idea)

Okay, so yesterday when my banker called to touch base he asked me how much cash I have on hand to cover the closing costs, because he only valued the property for the exact amount of the sale which means he can’t loan me over that amount. I said I do have enough cash, and we bade farewell and that was that. But I started pondering what he said and began to wonder what it means (for me) if a 235,000 home is “valued” at 132,400. To be honest I was excited to have found such a good deal, so now since this guy valued it at 132,400 that kinda ruins my pleasant vibe of buying something at a good sale price. I am sure if I paid for a professional appraisal the house would come in around 235,000 (I’m confident in my research numbers)

Do you think he was just doing this for convenience' sake?

I don’t understand why he can’t up the “valuation” a couple of thousand just to cover my closing costs.

Does this have any bearing on anything? Am I waxing paranoid here? How would you handle this?

Thanks in advance…..