4. Make sure insurance coverage are adequate

Unexpected home, car and health care expenses can wipe you out. Make sure that you have adequate home, car and health insurance and that the deductibles are set at a level that if you have an emergency and need to pay it immediately you can afford it.

5. Reduce Your Debt

Lenders typically use a formula that includes a total debt load of no more than 36 percent of income. This will include your rent or mortgage, which will typically hover around 25 to 28 percent of your net income. This means that you need to get monthly payments on other items such as car loans, credit cards and student loans down to about to 8 to 10 percent of your monthly income.