401k Withdrawal vs. Savings

[Elizabeth Bryant]

I am ready to purchase my first home and want to take a 401k withdrawal vs. depleting my savings for the down payment and closing costs.  I don't want to do a 401k loan because I don't want another bill.  I have ran the numbers and am okay with the tax penalty and fees from the 401k withdrawal. Would rather keep my liquid money available for surprises and a safety net. Is this a terrible idea?