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Do we need to let his 401 company know what happened, or just move forward with looking for something else to buy, since they previously requested copies of the purchase contract of that first home that we ended up not buying. Also, what if we need to now borrow more money from the 401k. Will they then ask about what happened to the first purchase. We just want to do whats right. Ideally you wont have to actually move any money out for your 401ks, instead just use any personal loan as proof of reserves.

Your broker should know best how to structure the loan knowing who any personal loan what assets available. Not sure why you would want to mess with your retirement to pay your insurance bill.

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