We were just having a discussion at work. I think I know at least part of the answer but since I know there are at least a couple real estate experts on here I'll ask.

Let's say you closed on a house. I believe, as with many contracts, that a mortgage has a 3 day right of rescission clause. But if you back out of the mortgage aren't you still contractually obligated to complete the purchase of the house? So what happens?

If you don't like the terms of the mortgage, even within that required 72 hour window that they first send you the closing disclosure before closing, you can still back out and get your earnest money. I know cause this happened to me once. Bad deal.

But once docs are signed sealed and delivered, you are committed.