Cathy Purdham, Underwriting Manager of NFM Lending discusses the do's and don'ts for borrowers looking to make their first home purchase or refinance. What is debt-to-income ratio (DTI)? Why should you avoid large purchases? How important is your credit report and score?

What is payment shock? Residual income? Non-sufficient funds? And how do they factor in getting approved for a home loan?

If you are a first time homebuyer, looking to move up, or refinance, Cathy offers some great tips for making sure the transaction goes smoothly.