Almost every single day hundreds of people get coaxed into taking a loan from a disreputable person or company. It doesn't matter who you are, if you're even just a little green behind the ears, they'll sniff it out and take no mercy. Here's what I think you should stick to so that you can minimise or eradicate the risk. Some of these practitioners can be very persuasive and pretend to be looking after your interests, so be smart and read this list twice. In fact, you'd be wise to send it to a friend, relation or simply save it to your favourites/bookmark it if you use firefox.

1. First off allow some time to look around if you don't have someone to use as a broker already. You'll get a much better idea of costs and you'll pick up different offerings which will help you in your discussions with your selected loans broker/firm later.

2. Never, ever sign a sales contract or loan documents that are blank or that contain information which is not true or you think is inaccurate. No matter what anyone says.

3. Ensure the costs and loan terms are what you originally agreed to before signing anything. You can even have someone else (professional) look at it for next to nothing.

4. Do not be persuaded into lying about (or choose to lie) about your income, expenses, or cash available for down payments in order to get a loan. If your lender persists with this kind of behaviour, you can bet they are up to other mischief as well.

5. Be wary of higher-risk loans such as balloon loans, interest only payments, and steep pre-payment penalties. Sometimes they can be used strategically for benefit but they can also be a nightmare if they get out of control.

6. Take care about disclosing things like your need of cash due to medical, unemployment or debt problems. You are vulnerable in these situations.

7. Don't strip your home's equity by refinancing again and again on things like holidays, restaurants, shopping sprees etc. It is so easy to do this when the funds are sitting in your bank account and easily accessible. Keep reminding your self that it's a loan and it's repayable. Stick to your goals.

8. Always be wary of false appraisals and any further business with the firm or person that carried it out or suggested it.

9. Ensure you able to afford to repay the loan. Allow for the unexpected like sickness or day to day life issues. Remember, if you get behind with payments you risk more that you'd like to think about. Simply borrow conservatively and leave some room to move.

10. Always get a minimum of 3 quotes and focus on the interest rate, including whether it's paid daily, weekly. monthly etc.