I'm about to by a house but I feel like I'm being robbed?

I'm finally about to sigh a contract tomorrow to buy a house, I was shopping around for years but my credit and income did not allow me to buy a house. But after years everything is okay and I found a mortgage company to finance for me. But the problem is, they did not tell me that I could have included the closing costs on my mortgage, and they told me they will only do business with me if I went to there attorney, as desperate as I was I did everything they asked for. And now I'm about to sign a contract, but I feel like I'm about make the biggest mistake because the mortgage is way over my head and the % is way to high. As I was discussing about it with my mortgage broker, he said if I back out now, I will lose the $65,000 I put for downpayment because I'm backing out of my deal. I don't know if that's legal or his just trying to scare me, can someone please help, or am I just getting the gitters because I'm taking a huge step. And on top of that he forced me to go to his private insurance company, with $2000 up front with 400 monthly on my mortgage, even tho I said I will go to my own insurer

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