The phrase “buyer beware” has never been more appropriate than it is right now in the purchasing of a house and taking on a mortgage for the first time home buyer.

While most of the purveyors of bad loans and scams have scurried back into their holes because of the recent fall out, that doesn’t mean that there are not any out there. Signing on the dotted line with one of these charlatans can be devastating for not only your family, but your credit and overall financial picture for years to come.

So, we offer some simple, yet oft overlooked advice to those who are new at this:

Watch for below-prime mortgages. These are what are known as “sub-prime” loans. You can identify them because they are an adjustable-rate mortgage (hence the term ARM) which fluctuates your payment based upon the market interest rates and other whims and tricks of the company that offers them to you. These types of loans are also offered to those who have poor credit scores and they push this feature in order to draw you in to their program.

The pitfall here is that they charge excessively high interest rates. So, not only are you subject to roller-coaster style payments, your interest rate is outlandish.

Know your credit score and financial situation. The more you know about your situation, the better you can be at determining what the best course of action is for you to take. Believe it or not, you might be better off continuing to make monthly rent payments on a home or apartment, until you can get your finances in order to help you be in a better position to buy a house.

Do not fall for the ‘quick and easy’ solution. Keep in mind that if it sounds too good to be true, it probably is just that. And, there are probably hidden things that you are not supposed to know until it is too late.

Check on a real mortgage. If your financial picture is right, then you can qualify for a conventional mortgage with low interest rates and none of the hidden fees or other things that can get you further into a financial mess.

Keep your eyes open and do not make a panic buying decision. You are always wise to take your time and think through the decision in order to insure that you are making the right choice for all of the right reasons.

With a little common sense and some basic information, you can make this a pleasant, gratifying experience.