The nation is all a buzz with talk of the housing market, and chances are, youve seen foreclosures popping up all over the place--including your own neighborhood. Its not a short-term problem (foreclosure rates having been climbing for some time now), and people are beginning to investigate to determine who is really at fault. Who is really to blame--the mortgage industry, predatory lending schemes, the unsuspecting and uninformed homebuyer, or maybe a combination of the above? Its hard to say for certain, but fortunately there are ways to avoid becoming just another foreclosure statistic. Here are some tips on what to watch for and ways to stay on top of the mortgage game:

1. Do your homework.

As with any new project, doing your homework is important. Know what youre getting into before you jump aboard. Take the time to figure out what you can and cant afford, and find out what type of mortgage you think may or may not work for you.

2. Just say no... to ARMs.

ARMs, or Adjustable Rate Mortgages are, without exception, a horrible idea. Its a gimmick used to attract misinformed or unsuspecting buyers. Many legitimate lenders feel this type of loan should be illegal. Unless youre interested in higher mortgage rates and a loss in net worth, you should avoid this type of loan at all costs.

3. Understanding is key.

This is crucial. Simply put: if you arent aware of whats going on during the entire home-buying, mortgage-shopping process, you are more likely to be taken advantage of. Talk to others who have been through the process and see if they have any pointers. Read up on the mortgage industry and know whats available to you. Surf the Web and see what you can find out about different lenders and mortgages. It may also be beneficial for you to work with a buyers agent. A good agent will be willing and able to answer any questions that come up along the way and help you find a qualified lender.

4. Know what you can afford.

Its easy to get approved for a hefty loan. Far too easy, in fact. Dont let a lender tell you what you can afford. Instead, do the math yourself, and dont forget to account for homeowners insurance and property taxes. Calculate your monthly cost and create a reasonable budget that you know you can stick to.

5. Fix your credit.

You should know months beforehand what your credit report looks like and what your FICO score is. Looking at your credit report in advance will help you nip inaccuracies in the bud and pay down any outstanding items that may be negatively impacting your score.