when building I have need for holes to lighten the model as well as other requirements. for this I use forstner bits. They cut typically without tear out. I use a drill press and place a block of wood under the wood I'm drilling.

for smaller then 3/8"s I use brad point these type of bits will eliminate most tear outs a typical drill bit causes if your using neodymium magnets for hatch covers these type of bit work great they typically have one the size of the magnet you may have.