Thanks for the replies, I've though it through and will wait it out.  My plan does alllow for mortgage withdrawal and also loans but I think I'm going to stick wih my original plan of waiting until next year.  As I thought more of that house I'm in love with - it may not be what is best for us.   I get a large commision check in April and can also use my income tax return for the down payment and paying down cards to qualify.  Then at least I leave my 401k alone. Sorry, just got excited when I saw that house I've been watching come back on the market after it went into pending.  I think I'm staying off the home sale website until I'm ready so I dont jump the gun again.