1. At this point I now have a working model and the results of a search. It would seem to me that the next step would be to write a patent. I believe I can write a patent myself using the written patents I recieved from the search as a guide. I envision scanning photographs of my invention into a word document, pointing to each component of my invention, and assigning a number to each of those components to be used in a list of materials. Am I right in assuming this to be my next step and will writing the patent as I have described be acceptable?
Acceptable in what sense? Will the patent office accept it as an application entitled to pending status? Yes. Will it eventually be acceptable as an issued patent? Maybe. Will it result in a patent which is enforceable and generate revenue? Possibly, but unlikely.
Consider that you may eventually be required to substitute line drawings for your photographs. Photographs can be acceptable for issued patents (i.e., as "formal" drawings), but there are others with more figure drafting experience than I have. If you have to include line drawings, you may be required to draw all features of the photograph (or hire someone to do it for you). That can be expensive down the road.
Here's what I'd do (without any computer drawing skills). I'd use tracing paper over the photos to draw the figures by hand in pencil. Then, make a clean photocopy for filing in the patent office. It will effectively be a nice "ink" drawing.
2. I suspect that at some point I will have to hire a patent attorney. Would I be correct in assuming that the more I do myself, such as having a search conducted and writing my own patent, the less an attorney's fee would be for such work that would remain for him to do?
Short term, it may be cheaper. Long term, it will likely be more expensive. It often takes more attorney time to fix a home-grown patent application than to write one entirely. And, due to acts of publication (uses, disclosures, offers to sell, etc.), many of the defects of a home-grown patent application are simply not fixable.
Remember, an ounce of prevention is worth a pound of cure. That's why patents (application through issuance) typically cost 5 figures and litigation of the same patent typically costs 7 figures.
The important thing to consider is exactly how crucial is a patent to your business model. If your business goes nowhere without the patent, it's worthwhile making sure it's done right. It's also worthwhile doing a search (which you appear to have done). If your business will be helped a little with a patent but will do fine without it, it may be fine to write it yourself.
Now, you probably have the same problem every new inventor has: great idea, no patent, no money. The solution is convincing an investor that your idea is worthwhile and a good investment. Be careful what you tell the investor without an NDA (non-disclosure agreement); it could affect your patent rights.
Sooner or later, you're going to have to convince someone else to believe in your idea -- an investor, a licensee, and eventually the marketplace.
Good luck.