Am I being ripped off with Closing Costs?

[Ellen Morrison]

Hi guys! 

My partner and I have been sending out direct mail for the past 3 months and we've finally found a deal (SFH). Comps are at $80k, seller wanted $60k and after negotiations we got the property under contract for $42.5k. The property is occupied with a tenant paying $750/month and the lease expires in one year. Since the property is occupied and we can't BRRRR, we've decided to finance with a conventional loan.

We found a lender that will take 15% down but they want $5,849 in closing costs for "Loan Costs" and "Other Costs". My understanding is that closing costs should be 2% - 5% of the value of the property.... this is over 13% which seems outrageous. The interest rate offered is 5.875% which is better than other lenders we've talked to, but are we being ripped off? 

This is a reputable company that I found through Bigger Pockets, so what am I missing? Why is this so high?