The goal of the association is to develop standards that balance continued valid uses of sub prime loans for buyers with imperfect credit while avoiding toxic loans and abusive lending practices.

"Realtors are the first stop for consumers in the real estate transaction and we're taking a strong stance against the practice by some unconscionable lenders to trap consumers into toxic loans that benefit the lender and not the consumer," Al Mansell, president of National Association of Realtors, said.

Mansell said Realtors are in a position to educate homebuyers on the consequences of certain loans that can work against the homebuyers' best interest as they go through the process of getting prequalified for fair and affordable financing. Realtors also can refer clients to reputable credit and housing counselors.

Since buying or refinancing a home is usually one of the largest financial commitments most people make in a lifetime, being a smart consumer and understanding the home-buying process is essential.

First-time homebuyers and senior citizens can become victims of predatory lending or loan fraud if they don't become informed. According to the U.S. Department of Housing and Urban Development, people can lose their homes and investments because of predatory practices when purchasing, refinancing or remodeling a home.

In addition to letting consumers know they can ask their Realtor about the lending process, the association's education campaign is designed to give consumers more details and information about the process.

Some practices that consumers should watch for include selling properties for more than they are worth using false appraisals, encouraging borrowers to lie about income, expenses and down payment cash available when applying for a loan and charging fees for products or services that are unnecessary or nonexistent.

Lenders should not pressure borrowers to accept higher risk loans, interest-only payments or loans with stiff pre-payment penalties. Buyers also need to beware of pressure sales tactics that sell home improvements at high interest rates or encourage refinancing over and over again that could erode the equity in their home.

Red flags should go up if asked to sign a contract or loan documents that are blank or contain information that isn't true or the cost or loan terms at closing are not what was agreed upon. Consumers should also be wary if told that refinancing can solve credit or money problems.

The U.S Department of Housing and Urban Development (HUD) offers homeownership education courses for consumers and provides a list of approved, nonprofit counseling agencies on its website at www.hud.gov.

HUD also offers tips to help consumers navigate the lending process. It's important to shop around for lenders, compare costs and not be pressured into something that sounds too good to be true.

Consumers are advised not to let anyone persuade them to falsify statements on a loan application, such as overstating income, the down payment source, length of employment or failing to disclose all debts. False information on a mortgage application is fraud and may result in criminal penalties. It's also a violation of federal law to misrepresent the intent to live in the home if the purchaser plans to rent out the home or fix it up for resale instead of occupying it.

When going through the loan process, consumers should never sign a blank document or a document that contains blanks. If information is added after signing, the consumer may still be bound to the terms of the contract. It is recommended to cross out any blanks or insert NA for not applicable. The consumer should carefully read all documents and ask questions about anything that is not understood before signing. Consulting a trusted real estate professional, a housing counselor, or asking an attorney to review the contract and loan agreements before signing is advised.

Consumers are protected from abuses during the residential real estate purchase and loan process through the Real Estate Settlement Procedures Act. The law requires involved parties to disclose costs of settlement services and is intended to assist consumers in obtaining fair settlement services through disclosure of applicable costs and information. A real estate professional with the designation of Realtor can provide more information about ethical services and practices as part of a real estate transaction. The term Realtor denotes a professional in the industry that abides by a strict code of ethics and is a member of a trade association that serves as an advocate for consumers.

The old adage that if it sounds too good to be true, it probably is, applies to buying, repairing or financing a home. For a wealth of information about financing and the home buying process visit www.mymoney .gov. To find a knowledgeable local Realtor visit www.silvar.org.