IMHO (as an investor and not a financial planner), I agree with Cynthia that this decision (assuming you're talking about purchasing a SFH) doesn't appear to make sense financially--especially now. Grant is right: cash IS king. He also presents an excellent argument about weighing the pros/cons of paying more and being cash poor versus paying less. Keep in mind that we're in a buyer's market which basically means that buyers should be able to get more bang for their bucks.
To me, it would make more sense for you to purchase a multifamily property, like a 4-plex, live in one of the units, and rent out the other 3. This way you could "flash your cash" to a lender provided you intend to finance your purchase, and leverage your cash position with both the lender and seller. Let's say you financed the purchase of a 4-plex for 700K with a 30% down payment (210K) at 7% fixed for 30 years, and let's say that you could rent out the other units for at least 2K. Your mortgage payments would be roughly 3.26K, and you'd collect enough rent to pay your mortgage, the expenses, and earn an extra $445/month (before taxes). The situation gets even better as you're able to increase the rents. You'd also still have 550K remaining.
Another way to further tweak this deal is to leverage you cash even more. You could use 490K of that 550K as collateral for your purchase, so in a sense you're able to make that 700K purchase without actually having to spend all of it up front. You should also be able to lower your interest rate (quite a bit) by doing this. Nevertheless, you could tweak this arrangement further too. You could work with your financial planner to set up a collection of high-yield bonds with that 490K and tax liens, and re-invest the yield from those bonds in other classes of investments like stocks or forex. This way you'll use that 490K cash as collateral for your balance (initially also 490K), and actually earn some money off of your cash--just like the banks would.
If you were to adopt this kind of strategy, then I'd also recommend that you consult with an estate planning attorney to help you to set up a strategy to protect your home and cash from any scam artists looking for a quick payday.
By the way, although I didn't mention it before, I included the cost for property management (typically 5%-10%) in the expenses. If you opt instead to manage the property yourself, then you should pay yourself that management fee, and you should work with a competent CPA (who's experience with working with real-estate investors) to help you with your taxes.
Anyway, perhaps now you can see that it's possible for you to put your money to use in a way that will generate multiple streams of income, purchase that home, and enable you to deposit 60K into your savings.