Inspector is the best money you will spend in the transaction, probably the best money you will have spent in your lifetime. Accompany the inspector, and tell your agent, before you sign the agency agreement, that you insist on him coming also.
You will be paying mip not pmi, probably. Mortgage Insurance premium. That is what you pay through an fha loan. You pay at settlement and throughout the life of the loan, not just until you get to 80% loan to value. Your initial premium is financed so you do not pay it at closing. Pmi is private mortgage insurance, which is more expensive, and comes with a conventional mortgage. It is eligible to be dropped once you get to 80% loan to value, but you have to apply to the bank and will include having to pay for an appraiser
Good. I did miss the part about you agreeing to get an agent...whew!
Let's reiterate:
Step 1: Continue to look at homes as they pop up and ask questions as needed...
Step 2: Get a buyer agent, have him or her pull the available listing meeting your criteria, explain how you wish to roll, your unanswered questions at that point, get a fair estimate of closing costs, understanding that some items will move based on sale price,etc.
3. In concert with your agent, discuss lending options, banks, appraisers, pre approval amounts, etc. Apply and get a pre approval.
4. Now it is time to start looking at homes. Do not invert this order of proceeding.
As to competing offers, the best way to combat potential competing offers is with a short offer period. Your agent can call the listing agent and find our if his client is available that afternoon or evening. Then you write an offer at the price you have decided to go with, and give the seller as little time as you and your agent deem prudent. You might go as little as 24 hours, or even midnight that day. Your offer expires at the date and time you select. If he signs prior to the expiration, congratulations, you have a signed contract. If he goes past that time and signs, you have to sign again, because it was no longer valid with just his signature. These are called offers and acceptances. If you went midnight, for example, he's pressured into deciding pretty much then and there with YOUR agent present to assist HIS agent to take the deal in hand, hopefully. ANY change to your offer he makes must then require your signed acceptance before the contract is valid. Executed is the technical term.
Moving fast helps too. As we already see, the homes are getting picked up quickly. Your agent calls you about a property, you haul ass over there. I will warn you that some sellers get paranoid about selling so quick. Remember, they have to move too, and really can't plan for every scenario, including a sale the day after they listed their home. Hopefully their agent explained that regardless of how hot the market is, the home has to appraise at fair market value, which they arrived at when they did the competitive market analysis when listed.
Now let's complicate shit some more...the opposite end of the spectrum, if you will...the high Dom listing...days on market. You have a home that the market is telling the owner is over priced. They MAY be on the verge of coming to their senses, and an opportunity exists to write a low offer, as they may be freaking out watching other homes sell. The problem with that, unfortunately, is they have already evidenced some stubbornness, at least on paper. You just don't know, but your agent can pow wow to a degree with the listing agent to find out the seller situation. The problem could be something you don't even give a shit about...every single home is different, even identical homes right next to one another. One might have a loose nut behind the entrance door, for example, lol