Financing options for buying first house with inherited IRA?

I lost my mom 3 years ago and inherited a sizable IRA from her that I am using to purchase my first home! It’s a beautiful Victorian in my favorite city, she appears very well maintained but inspection is on Wednesday so we will see (send me good vibes please!!). For now I am working off my winning offer price of $313k.

I have enough that I could purchase in cash but don’t want to because of the tax cost and the fact that those taxes are going to bombing children and families instead of funding public schools or healthcare. Over the next 7 years I will have to move all of the money out of the inherited IRA into my name and pay taxes on it as if it’s income. For that reason my instinct is to just pay the house off over the next 7 years. My lender mentioned that I might only need 5% down if I go that route, however then I will also have mortgage insurance until I reach 20% equity (would take 25 months, ~$6,000 in mortgage insurance payments), which in my neurodivergent mind is throwing away money the same way a 30 year mortgage would cause me to lose hundreds of thousands on interest. Thus, my instinct is probably to pay 20% down and then have a nice lower monthly payment even though I will probably end up putting myself into the next tax bracket this year.

If the inspection reveals flaws that could be used to negotiate, my instinct is to lower the sales price (and subsequently my property taxes which are higher in my area) rather than accept seller credits (which could help me stay in a lower tax bracket this year but offers no long term savings). It’s also one of the more expensive houses on the block and I can imagine raising my neighbors property taxes with a higher purchase price is a poor way to make friends lol Im also not trying to be a gentrifier.

To me, these feel like good, logical, decisions but I’d still like input and advice. I have a financial advisor but I would rather hear from normal people who are more in touch with reality. It may be important to know that my financial goals are more tied to having a good quality of life for the time I am here, than planning for a lush retirement. My mother, and her mother, both didn’t live to see retirement and I’ve already had cancer once so I’m not counting on living to see it either. I’m not having kids so I’m not trying to leave anything behind.

This is the kind of house I’ve dreamed of and thought I’d never find, especially in my favorite city. The craftsmanship is insane, original hardwood floors in great condition, a claw foot tub, it has all the original doors with glass doorknobs, all the hinges are engraved with designs, both bathrooms and the kitchen have been recently, and SO tastefully, updated. I’m not even mad at their paint and wallpaper choices so I wouldn’t need or want to change anything any time soon. I’m so excited but also so anxious, I’m doing this all by myself so there’s no one to talk things through with, or to celebrate with. I so wish I could call my mom and talk to her about it :(

So, Reddit, am I thinking about this in the right way for my circumstances? Is my logic and reasoning sound or am I blinded by my love of this house and disbelief I might actually get to live in it?