Some parents use home loans to finance adoption costs. I worked for a large direct lender for 10 years. I loved my job. I left the company on good terms seeking to stay home with my children.

With that said there are things you want to consider when getting a home loan or a home equity loan. (These tips would also apply to an unsecured loan or credit card loan!)

1. Compare Rate & Fees from several different places. Rate isn't everything! LOOK AT THE FEES. The bottom line. How MUCH is this going to cost you?

2. Prepayment Penalty. Look at the fine print - you DO NOT WANT A PREPAYMENT PENALTY! The whole goal is to pay this loan off ASAP. You don't want to have to pay the bank extra because you pay it off early. - Don't just trust the lender/loan officer when he says there isn't a prepayment penalty. The loan officer may intend to have your loan free of penalty for paying it off early. Loan officers can be honest people too! However, a simple mistake on the part of one of the paperwork processors could cost you $1000's of dollars. Read it on the paperwork before your sign.

3. Fixed Rate. Adoptions rarely run on a fixed timeline. You would be wise to look into a fixed rate loan. They tend to have lower rates. They will give you a lump sum just put that into an interest earning account. Your adoption funds are available and can you pay your expenses out of one account. This might also be a good way to help track expenses. Back to Adoption Costs from Home Loans