Get Referrals: ensure that you know who you are dealing with when you decide to buy or sell a house. Get referrals for real estate and mortgage professionals and also check their state and local licenses.

Do Research: Find out what other homes, particularly those of similar size and value, have sold for. Also check recent tax assessments of nearby homes.

Stay Away from "No Money Down" Loans: These are usually gimmicks to get people to buy homes they can't afford. At best, these loans have very unfavorable interest rates and terms.

Don't be Persuaded into Making False Statements: This includes real estate agents, mortgage brokers or anyone else involved in the transaction. Even a seemingly slight overstatement of income is considered fraudulent.

Never Sign a Blank Document: There are no legitimate reasons for signing a blank document or one containing blank lines. Always make sure you read and understand what you are signing.