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What Consumers Should Do First Before Buying Or Building A Home



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Consumers become prepared better for buying a home when they start with their finances. It is their finances that have the largest impact on their ability to buy. This could help them qualify for a construction loan quickly and without great difficulties. A lender could assist them by presenting them with an early assessment.

An Early Assessment

When building a house, the first obstacle is to achieve the best credit score possible. This may require the consumer to pay off outstanding debts. They should review their credit history and start with negative accounts. It is these listings that could prevent their credit score from increasing. It could also present them with issues when selecting a home mortgage.

They should also consider negotiating with their creditors. This could help them achieve a settlement offer. This is a reduction of the total debt. In some instances, they could acquire up to a fifty percent discount on accounts that are placed in collections or charged off.

Contacting a Lender

A lender can help the consumer by showing them what mortgage loan products are available to them. The lender shows them what the down payment requirements are for each mortgage. They could also present them with a pre-qualification that will help them identify a budget for their new home construction.

Finding Properties Within the Designated Budget

The consumer should work closely with a real estate agent to identify properties within their budget. The agents have access to properties that are completed as well as empty lots inside planned communities. The agent could evaluate the budget set up by the lender and determine what properties are most affordable for the consumer. This could also include opportunities for remodeling loans.

Reviewing Closing Requirements

The closing requires the consumer to present all insurance policies needed for the property. The sales contract identifies what party is responsible for the closing costs. The closing is a meeting in which total mortgage value is given to the seller. An attorney manages the transfer of title for the new buyer. If the property is a new construction, the seller is either a builder or real estate firm.

Early assessments of their finances help consumers make sound decisions about buying a home. This could include new constructions and renovation possibilities for existing properties. A lender helps these consumers identify what mortgage is most affordable for them. Consumers who are ready to start this process for mortgage or home improvement loans should contact a lender now.

Climate finance: investing in our collective future

The spiritual grandchild of the Rio Earth Summit agreement of 23 years ago, the universal climate agreement (UCA), is the world's best chance to limit global temperature increase to two degrees Celsius. The universal hope is that it will be adopted at the global climate change summit in Paris, France, in December 2015. The UCA is important because it will record different countries’ commitments to reduce their carbon dioxide emissions, and, this time around, developing countries, too, will make commitments to reduce their emissions—and they are looking for how to fund the actions they will need to take.

How much money is needed by developing countries? Estimates are around US$ 450 billion per year from 2020 on: US$ 350 billion for reduced emissions and US$ 100 billion for adapting to the impacts of climate change. Some of this money will be provided by countries themselves. But to reach their emission reduction targets, a significant fraction will also need to come from developed countries in the form of official climate finance (OCF). These numbers may sound overwhelming, but context is paramount—they should be compared to net inflows of debt and equity into developing countries, which are estimated to be above US$ 1.2 trillion per year.

At the 2010 Climate Change Conference in Cancun, Mexico, the global community responded to developing countries’ financing needs by creating the Green Climate Fund (GCF). The GCF groups 196 sovereign states that are Parties to the United Nations Framework Convention on Climate Change (UNFCCC), and is the only multilateral financing institution in the world whose sole mission is to serve the UNFCCC’s climate objective. Its purpose is to promote a radical paradigm shift towards low emission and climate-resilient investments in developing countries.

How is the GCF expected to do this? By providing developing countries with direct financing for climate investments and by leveraging other financing, including private investors and financial markets. Funding will be concessional, and one of the GCF's greatest innovations is its risk-bearing capacity, allowing it to bear more risk and thus leverage other less risky financing, notably from the private sector.

A lot of work has been done since the GCF’s inauguration in Songdo, in the Republic of Korea, in December 2013, where it is headquartered. It is now open for business and has a growing network of more than 120 developing country focal points engaged with the Fund. Developing countries are central in the funding process and the GCF’s own Board is structured to ensure a balanced representation from developed and developing countries—a 50:50 ratio.

In the year since its launch, the GCF has already secured US$ 10 billion equivalent in financial pledges from 33 countries, including from developing countries. It continues to raise money on an ongoing basis. A significant portion of its pledges have already been converted into usable resources, and the Fund is ready to start investing in climate-sensitive projects and programmes.

How will the GCF operate? Through a network of accredited partners, trusted entities that will work on its behalf during the project cycle. These may include local institutions in the countries themselves, regional entities, private banks and funds, nongovernmental organizations and international organizations. The GCF’s accredited partners will deploy its resources through a variety of financial instruments (concessional loans, subordinated debt, equity, guarantees and grants) and monitor project impacts. The process to build the network of partner entities is ongoing, with applications received from all over the world, and some institutions already accredited.

To accelerate private sector investment in low-emission, climate-resilient activities, the GCF’s Private Sector Facility will work hand in hand with international businesses, capital markets and the local private sector in developing countries. Its risk-bearing capacity will enable the Fund to support private investments in, for example, energy efficiency, forest protection and reforestation, deployment of climate-related insurance products, adaptive agricultural methods in the face of desertification and other similar projects.

At the Paris Climate Change Summit later this year, the world expects member States to take some important decisions concerning climate finance. Total OCF commitments to date are a good start but only a fraction of what is needed to achieve the world’s climate change objective. In order to succeed, countries must agree to set in place predictable, long-term flows of OCF up to and beyond 2020, including quantities significantly larger than the initial pledges made to the GCF to date. The line of argument for increasing investments is simple—either we pay now or pay later and face the risk of significant development setbacks for all of humanity.

See more at: http://www.dailydevelopment.org/blog/climate-finance-investing-our-collective-future