You'll probably have a processing fee along with the points, plus normal closing costs.

Is this normal or should there be some documentation for renting the space?

My normal process, is that they indicate that they are interested, I show them the property, they fill out and application, then we execute an agreement for lease.  

You are possibly leveraged too high to make this deal with lender. they may be skeptical, because you may not have enough skin in the game(YOUR MONEY) some one financing the down payment is normally a no from a lender on investment property

This loan is a one time close that offers rates comparable to normal conventional rates.

Is that normal?

Is your unit so difficult to rent that you are willing to take the risk or are you just desperate and willing to gamble on a very long shot.My advice is keep looking.

Normally you have to bring a cashiers check to close, or wire money from another account. 

They don't have the cash to do a normal down payment.

Pet deposits are normally half or full amount of the monthly rent.