When you become a parent, making good financial decisions becomes even more important to you. After all, it’s not just your future on the line anymore. Now it’s the future of your children too. Your mortgage is one of the biggest financial choices you can make in life, so here are some facts you need to know about financing your home to ensure you are in a good financial position and also a strong negotiating position for your home purchase.

1. You Must Be Prepared

Before you enter the home shopping world, you need to be financially prepared. This starts with a strong credit rating, which will have a direct impact on your ability to get a good rate from a lender. Take a look at your credit report before you start applying for loans, and make any changes that can help boost that rating.

2. Strengthen Your Offers with Pre-Approval

Having mortgage pre-approval will make any offer you put in on a home stronger. Pre-approval is not a guarantee of your financing, but it is a good indicator that the bank thinks you are a sure bet for a loan. Also, as part of the pre-approval process, your bank will tell you an amount they are willing to lend you. This helps you shop within a realistic budget, and when you do find a home the pre-approval letter will make your offer more appealing.

3. Get Better Rates by Shopping Around

Mortgage rates aren’t set in stone. Lenders have some wiggle room in what they offer borrowers, not only in terms of interest rates but also in terms of the costs of the loan. Compare the different loan options that are available to you to find the best possible option. When you are looking at a 15 or 30-year financial commitment, even a few percentage rates on interest will add up to big savings.

4. An ARM Can Be Beneficial

If you’ve been researching mortgages for any length of time, you may have heard that adjustable-rate mortgages are a bad idea. The reason for this is the fact that the rates will go up after a period of time. However, for parents who are buying a home for the first time, they can be a great option. Why? Because many first-time buyers don’t intend to stay in that first home long. All ARM mortgages have a period of time when the rate is fixed, and if you sell or refinance before that time is up, you won’t suffer from increasing rates. During that fixed-rate period, the loan’s interest will be lower than a fixed-rate loan for the same amount, allowing you to save a bit. Always read the terms carefully so you know what your adjustable rate will do and when, and watch out for prepayment penalties if you go this route.

5. Your Mortgage Isn’t a Life Commitment

Sometimes parents who are buying a home for the first time find themselves scared of the commitment. Yes, your mortgage is a long-term commitment, but you can always refinance if you make a poor decision. However, rates are never guaranteed, and interest rates sometimes do increase, so it’s always best to be wise at the start. That said, if you find yourself in a pickle with a loan that doesn’t fit your needs well, you do have options!

Buying a home for your growing family is an exciting time. With the right mortgage, you will be well prepared for the days ahead. Take the time to do your research, then move forward with confidence knowing you have a great mortgage option.