I will just add that I think the 'worry factor' of the monthly mortgage payment or the 'comfort factor' of not having a mortgage payment is a mirage - probably even backwards.
Consider this scenario - you take out a reasonably sized mortgage (let's say 20% of total NW). Yes, you have a mort payment, but you also have gained a ton of liquidity. Now imagine you lose your job. You still have prop taxes, utilities, and food to put on the table. You can easily cover that mortgage payment from the liquidity for a long time.
Here's some round numbers from a calculator:
$100,000 mort @ 4% = $5736 P&I annually. So if you are out of work for a whole year, you draw down that $100,000 and you still have $94,264. You are likely to exceed that draw-down with investment returns long term. And you can tap it to feed your family if it comes to that. The money tied up in a house is not so useful in a case like this.
Liquidity is flexibility. Like any tool, use it properly.
Put another way - I'd be less comfortable being 'house rich and cash poor' than having some modest debt at good rates, and some added liquidity. Just some things for you to consider.
-ERD50