Can a valuation which is lower than the purchase price affect your mortgage application?

Dear Homesoflife,
As part of the approval process for a mortgage, I was required to obtain a valuation of the property. Strangely, the valuation of the property was lower than the purchase price. Would this affect my application?
Mortgage Applicant, Lagos


 Dear Mortgage Applicant, we put this to Oloyede Obatoyinbo, Managing Director / CEO of Real Estate Brokerage Co. (REBCo), a firm of mortgage brokers in Lagos. Mr Obatoyinbo explained that the situation was not fatal to the application but “this (the Valuation Report) is telling the buyer that he’s about to pay a premium for the property i.e. potentially more money than the property is worth”. The applicant is advised to pay for a second independent valuation, which if it turns out to be close to the first, is confirmation that he is paying a premium on the actual value of the property.  “It then becomes a matter of the buyer once to go ahead anyways due to whatever reason (sentimental attachment for that property, specific location, use of the property etc.) which is all ok once they appreciate their position.
From bank perspective, typically, bank is ok to move ahead. Buyer will pay fees based on inflated transaction price e.g. house is worth N80m and u are buying it for N100m, then you pay fees and contribution based on the N100m. The Bank will only protect themselves given what they feel is the true value of property… more contribution etc. Remember if there’s a default down the road... it means they can only realize less on the property and they will take necessary steps to protect their position.