Looking to get a mortgage for a bank owned foreclosure home an REO. I have an excellent credit score & able to put down a good down payment . Asking price is $388,000. How much should I try to offer? & How much of a down payment should I put... higher... medium... or lowest?

Where can I serach current matket values in my neighborhood before going to the bank or do I need to do this before going to the bank?

It is always prudent to do your homework on the value of anything you want to buy.

RE: Downpayment and mortages. I always tell my clients that if they are trying to buy a short sale or a REO that it is VITAL that they get "preapproved" by a mortgage company with credibility. In order to get "preapproved" you will have to:
1) fill out a 1003 application
2) Have your credit report checked by the lender
3) Furnish ALL REQUIRED income, asset and job verification
4) Have the lender issue a "Mortgage Commitment" that is only contingent on an appraisal, title and insurance proof.

THEN (with a Pre-Approval attached to the offer) the selling bank will consider your offer.

Some sleazeball lenders will just check credit and issue what WE call a "pre-qual" and call it a pre-approval. One of my erstwhile clients last year was lazy and did this, i.e. had a "pre-qual" issued as a "pre-approval" by a competator, and lost $23,000 in deposit funds when they found out two days before close that the really didn't qualify for the loan they applied for...

RE: Down payments... anything less that 20% will cause you to have to pay PMI which will increase your monthly payments and may make a loan more difficult to get.