Quick 401K loan to cover cash to close

[Robert Geiger]

I am currently starting a new job, and I am looking to purchase a house. My new company is giving me a signing bonus for the amount I want to put down; however, I will get the cash 6 weeks after I start. I am trying to close on my home 4 weeks before I get the cash to close. I am thinking about taking a 401K loan before I end employment of my current employer to cover me for 4 weeks. Everything I read online is I will have 60 days to pay the loan back before it defaults, is that correct? Do you think that I can take this loan now, resign, two weeks later buy the home (lender already approved), and then 4 weeks later pay back the loan without getting hit with taxes & penalties?