why paladin 3 and not 2? If it is divine grace you want you could use the paladin prestige class from unearthed arcana and lose only 1 caster level.
I just made a favoured soul4 / paladin 3 /Fist of Raziel character(progressing in FS spellcasting)
It seems very strong. Any experience with the PrC?
FoR is really nice if you can use the 5th level ACF for Paladin, I think it's called Charging Smite, that deals 2x smite damage on a charge attack and doesn't waste the smite attempt if you miss the attack (if you use the CG Paladin variant - Paladin of Freedom - you can take a level dip into Barbarian for Lion Totem Pounce shenanigans) . You lose your special mount for this, but that's never been a big issue in my experience, just buy a normal warhorse like everyone else if you need a mount that badly.
There are also some decent smite feats if you can get them, I think the one in BoED was OK but a lot of people seem to not like that book.