confusion...

I'm trying very hard to find flaws in common financing packages, I'm sure there's a common practice amongst investors where they get to finance properties 100% but in reality the loan agreement says 90% margin of finance in black and white. The banker values your property higher than the transacted price, and the bank approves 90% loan according to the bank's valuation.

But considering that the bank will require all the necessary documentations of the transaction and SPA, how on earth do one get away with the inflated price to acquire a higher loan amount than he/she is supposed to get?

Even if this works, how do we claim the extra cash from the bank when they help you to pay off to the vendor? Doesn't the money go straight to the vendor? If not, then do the bank transfer the loan to your own account? Which didn't really happen during my first experience in properties. So how does the money go about here?

And if it's a common practice, do the loan packages include zero entry cost, or just plain loans for the property value? If the package can include the likes of MRTA and such, then surely the loan wouldn't be the exact '90%' but higher. So how does the bank calculate the loan amount when the transacted price is totally flawed on purpose in the first place?

I must've missed something very important along the way. Surely there's a way to explain all these.

I hate it when something bothers me this much.