Yes, that is a standard way to clean the oil off. If you need to get truly all the mineral oil off, it should be washed 3 times. I would only pull vacuum on the last one, and do it slowly and carefully so the powder doesn't jump all over the place. Remember that at this point that powder is HIGHLY pyrophoric. I would quench this reaction with something like slow addition of isopropanol, then MeOH, then add whatever your aqueous workup is.
For your lattice question, I'm not sure I understand. The outer surface has exposed hydride groups, and as these react /dissolve, more hydrides are exposed and so on. It probably does proceed along crystal boundaries to some degree.