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Well I did a hardship withdrawal and it said I wasn't allowed to take more than what my need was. I assume the residental loan would require the same proof but I'm not 100% sure. I had to show my contract and my fee worksheet showing how much I was required to pay.
We will also be using our 457 for the downpayment/costs. In looking online it requires proof of a contract for us to get the amount of money we need for the loan. I would imagine all of these type of accounts require documentation as you're gettting the 15-year-payback option on a real estate loan versus just using the money for something else.
We'll also have to pay off some balances using the 457 so we'll actually have two loans (max), one without the 15 years payback option.