Backing out of a contract as a buyer

[Bosko Mijatovic]

Hello I was wondering if I am legally allowed to back out of a contract at any given moment during escrow? We are set to close tomorrow but we never deposited our earnest because of lending issues even though there were no contingencies listed in the contract. We have notified the agent at least a week ago and he finally responded that if we don’t go through with closing they can sue us. Again I’m not sure how they are gonna sue when we don’t have funds to obtain the property.