Was the priest who blessed the house a personal friend of the Lutzes?
Yes. The priest who blessed the house was known by the Lutzes as Father Ray. Father Ray was not simply a local priest, as the movie makes him out to be, but was in fact the Ecclesiastical Judge for the Diocese of Rockville Centre – a very prominent position in the Church. George met Father Ray during the annulment process of his first marriage and found him to be quite an extraordinary man. They became good friends that afternoon.