How do lenders handle instant equity?

[Christopher Giannino]

If you're able to buy a deal where you have instant equity because you bought the property for less than what the appraisal came back at (and I'm talking like $10,000-15,000) how do lenders handle this... Do you get better rates on the loan because the LTV is at say 70% vs. 80% (assuming you put 20% down)? Do you get to put less money out of your pocket for a down payment because you can use some of the instant equity as a DP? or do lenders just say your lucky because you bought below market so you have instant equity.