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Estimated closing costs of $12,000 on a $110k home?

A family member is buying their first house. They have a house that they are willing to "settle" for (I have already tried to talk them out of doing that but to no avail) and they found one where the buyer is willing to go to $110k on a listing of $115k.

Problem is, they are not using a realtor, and they are being completely neurotic about the whole process. They have no money for a down payment and had to get money for the closing from another relative. They are making offers and doing all this stuff that is really the wrong move for their situation.

Having been through the process myself about 4 times, I was taken aback when they told me that their lender told them that the estimated closing would be $12,000 on a $110,000 home. To me, that was ridiculous. My first home was that exact amount, in an area with higher taxes and our closing costs were about $3500 with an interest rate of 7%.

They only have $5000 for closing from our relative, and they are asking me for more because they are being told they will need this much. I don't really understand how the costs would come close to that on a home that is not that expensive.

Am I being too unreasonable? Should I tell them to look for a different lender?

submitted by /u/Iflookinglikingmove
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source https://www.reddit.com/r/RealEstate/comments/n1i6td/estimated_closing_costs_of_12000_on_a_110k_home/
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