Home Buying in Huntsville>Question Details

Pugbugmama, Home Buyer in Illinois

Ca n I buy a house cash? Any special need in a check? I am thinking about pulling the whole amt from my 401k. Thanks

Asked by Pugbugmama, Illinois Fri Apr 20, 2012

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From my last home purchase they will just need you to get proof from the bank stating you have the funds, and then get a cashiers check and that is it!
0 votes Thank Flag Link Thu May 24, 2012
Yes you can buy a house with your 401 k. Generally there is a large tax associated with buying property with 401k. I think it's 35-45%. Which is the reason most people only use a portion of the 401k as a down payment. however you will eventually have to pay taxes on the money anyway in the future.

Here a couple useful links to help you in your decision making. This first 2 links solely discusses using 401k as a down payment in case you decide to way your options and continue to save the remaining 401k investment.

http://www.mtgprofessor.com/a%20-%20down20payment/use_funds_…

http://www.forbes.com/2010/03/24/tapping-retirement-funds-ir…

http://www.ehow.com/how_2075559_purchase-home-using-401k.html

Hope this gives you some more direction in making a wise home purchase. please feel free to contact me any time you have other real estate questions.



John Brooks
256-797-2283
http://www.sellinghuntsvilleproperties.com
jdubbrooks@gmail.com
0 votes Thank Flag Link Fri Apr 20, 2012
You may want to talk to your tax advisor before you do that:
Not only will you pay for taking money out of the 401, but you will lose the tax deduction on the interest on the loan.
You might consider borrowing against the 401; just a thought.

You will need a Cashier's Check, payable to the Title Company, if you go that way.
0 votes Thank Flag Link Fri Apr 20, 2012
Yes you can buy a home for cash! We would be happy to assist you in finding the right home for you, As far as a check it would have to be a certifed bank check (sometime called a cashier's check) at closing. This means it is not a personal check and the funds are there. You might want to discuss financing with the rates as low as they are but owing your home out right is a real American Dream.
Please call us so we can discuss you needs and wants.
Thank you!
Buddy Tidmore
crye-Leike Realtors
256-457-5119
0 votes Thank Flag Link Fri Apr 20, 2012
Check with your tax advisor before pulling out money from a retirement so that you can understand any possible tax hits.

Other than that, a cashier's check or wire transfer to the Escrow Company works.

Have an Amazing Day!
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Fri Apr 20, 2012
Cash is the most trouble free method there is. You will need an earnest payment deposit and proof of funds at the time of offer submittal. Give me a call and I'll be glad to explain the process further and answer any questions.

I am here to help you through the process.

Rick Robinson
256-682-8907
rickrobinsonrealtor@comcast.net
0 votes Thank Flag Link Fri Apr 20, 2012
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