Whenever @Dan Handford and I are looking at a deal, we shop all local competition as if we were going to rent from them.

Services Borrower did not shop for (Appraisal)= $875.00C.

Well, I'm not advising that someone is definitely up to no good, but if they haven't provided you with any type of comfort, peace of mind, and trust that you need just shop around as much as you can.  

With the average home owner staying in their home 8 years, I do not see this changing unlike things that are more of daily use like online shopping.

I have a shop in my town that has all sorts of legal documents for $5-$10 per.2) Option agreement - You can find these also at the same type of shopThese two documents MUST be separate documents.

You give them your Arm, they devour your entire body.  

I recommend you ask them for a sample of their work, and shop around for pricing. 

Make sure to shop around as some banks are going to say no just due to your financial situation. 

My experience has been that most banks offer similar products and if you shop around you can often find another bank that won't require these items.

Google Earth down to all the commercial shopping 1-6 block radius, look for boarded up windows, broken windows, Grafitti, types of cars, types of people, trash etc... if you see all of the above.