Bill & Sharon
PS If you do not have an agent, give us a call (315.345.4056) - we would be glad to help.
The reason that the closing costs are so high is due to the property taxes that need to be paid up front in escrow when a borrower puts less than 20% down.
There are many mortgage banks and brokers out there... our clients have had great success with Jason Miller at Prime Lending - 315- 244-7831
70% of all loans written in this areas are FHA loans that require 3.5% down payment. Unlike some of the other suggestions on this forum, I would encourage you to pay your closing costs if you have the money, rather than roll them into the mortgage. I would also purchase a home under $170,000 due to tax rates and if your exit plan is to stay in the home no longer than 3 years.
Many home buyers that roll in the closing costs have trouble selling in the future due to a negative equity position.
I hope this helps!