I am looking into getting a 2500.00 hardship withdrawl from my 401 (k) for closing costs on a home. Is his wise?

A hardship withdrawl is usually not for closing costs. They are usually to avoid bankruptcy. Closing costs are typically covered by a loan from your 401(k). There can be good and bad reasons to do this, but in general, the financial world says it's an okay thing to do with one big caveat:

If you lose your job, you'll have to pay the 401(k) loan back immediately in full.

For some people, that can be hard.

I would avoid a withdrawl like the plague. Look into a loan instead.