The best way to minimize sanding is to use a small stepover, which unfortunately means more machine time. But more machine time is better than sanding, imo.
For large tools, 2 fluted carbide tipped core box bits work well, are cheap, and can be had in large sizes. For small bits, I use Drillman1 on Ebay. $3-$5 per tool, and they work great.
Honestly, it's hard to go wrong with ballnose bits in wood. Just try to stick to 2 flutes.