Are you looking for a new home or looking to refinance your current one?

Mortgages can be confusing. Here are some things people need to know before signing on the dotted line.

A typical mortgage has documents more than an inch thick; a person will sign and initial his or her way to years of monthly payments.

And there may be hidden fees included in your mortgage. For instance, mortgage companies cannot charge more than they pay for third-party services like appraisals, pet inspections, flood certifications, or credit reports.

"So if it's costing them $25, the consumer should be charged $25 for that report," attorney Jack Kurant said.

Even the best mortgage broker may slip in an unearned charge.

Another thing to look for is points on your loan.

"If the lender is charging one point, that will be $1,000," he said. "If a lender was charging two points on a $100,000 loan, that would be $2,000."

So nail down in writing how many points are on your loan.

Don't be surprised if a mortgage company charges an application fee. They all do; it covers the preparation of all that paperwork.

"You have to check to see if the application fee is fully refundable or if it's going to be non-refundable if you don't qualify," Kurant said. "Or if you choose to go elsewhere to borrow your money."

The best way for people to protect themselves is to ask questions or shop around for a mortgage broker.

And if you have a questionable credit rating, some bad mortgage brokers may be looking for you.

"(Watch out if) at the last moment (there is) a switch and bait to a higher interest rate or additional closing cost," Kurant said.