Quick answer

A personal loan can supply fast, unsecured cash so you meet the lender’s required funds at closing. Because it adds monthly debt and interest costs, the most important consideration is how the new loan affects your debt‑to‑income ratio (DTI) and mortgage underwriting. In many cases it’s a workable short‑term fix; in others, it can delay or derail mortgage approval if not handled carefully.

Why buyers run into closing gaps

A “closing gap” happens when the cash you expected to bring to the table is less than what the lender or closing agent requires on closing day. Causes include:

  • Updated payoff or escrow numbers from the seller or lender.
  • Last‑minute inspection repairs or lender‑required fixes.
  • Miscalculated closing cost estimates or wire timing issues.
  • Delays in receiving gift funds or proceeds from asset sales.

Closing gaps are common: even well‑prepared buyers can see estimates change between loan estimate and final closing disclosure. See our Homebuyer’s Guide to Closing Costs for a breakdown of common fees and who pays them ([Homebuyer’s Guide to Closing Costs](