I keep waking up with one or two red mosquito looking bites, when I scratch them red dots appear all over the bite, they itch a lot!

Eesh! Sounds like bed bugs (or maybe chiggers).

Here is a link for information on bed bugs and how to tell if they're in your home...
Bedbugs: Diagnosis, treatment, and outcome

Do the bites appear in a line? A zig-zag pattern? Those are fairly definitive signs of bedbugs.

Check your mattress around the seams for black pepper sized dark specks. Shine a flashlight around the joints of the bed and see if anything moves.

Here are some other links about Bedbug control:

Bed Bugs Prevention and Control

Bed Bug Control in Residences - Let's Beat the Bed Bug!