Closing cost confusion!

[Manley Woods]

I’m in the process of looking for a rental property in Oklahoma, and the lender I’m working with has a set price for the closing cost of my transaction. It doesn’t matter if the property cost $120,000 or $80,000. I have done some reading, and learned that generally closing costs are 6% to 8% of the cost of the property. My question is has anyone else worked with a lender that has a set price for the closing cost of a property, and is this a common practice? Is this a red flag, and do I need to search for another lender that will have closing costs that are 6% to 8% of the cost of the property? Thanks in advance.

[Nick C.]

No it’s because 

$1000 is 1.25% of $80,000 and

$1000 is 0.83% of $120,000

The fee is the same, but a smaller percentage as the loan amount goes up.