Impact of personal loan on mortgage application, if I already have down payment funds

[John Jacobson]

Hi everyone. I am looking to buy a $500k property, and I have over $100k in savings (i.e. the 20% down payment). Will taking out a personal loan (to pay for some renovation work that I need completed shortly after I close) just before submitting my home loan application, or alternatively taking it out during the home loan application review period, in any way affect my home loan? 

Here's why I'm hoping not: my bank statements will show that I have more than the 20% down payment in savings, so the bank will see that I don't need the loan for my down payment. Therefore this personal loan shouldn't affect my borrowing capacity, even though I got it during the 2 months seasoning period.

And for those wondering why I don't apply for the personal loan after I've closed on the property, the property I want to buy needs the renovation work. If there are going to be any issues with me getting the personal loan, I want to know about them before I apply for the home loan. Again, I understand that this would have big implications on my home loan application if it looked like I needed the personal loan for my down payment, but this is not the case for me.