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.
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.
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.
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.