Right, I just assumed that fees would be small (not around $900). You're right, percentage-wise it is very high, and that's what shocked me.
Fannie Mae is only required to pay up to $316 for "owner's title policy," which I believe is related to insurance, and thus isn't worth anything to me.
I may think about insurance in the future, I just don't have time for it right now, and it's a relatively small investment.
The main thing that bothers me is that the contract I signed said something similar to "buyer is responsible for all fees related to closing, including ..." without giving any dollar amounts.
What keeps them from charging $1000, $2000, or $3000 for a "settlement fee"? Is there a law regarding this? Signing a contract to pay undisclosed fees seems really illegal/unethical to me.