gay and trans people exist. your kids will be fine knowing this.
but to answer your question you should ideally raise them to be open and that it's okay for them to be who they are, rather than indoctrinating them into homophobic views like you were probably planning on doing. it isn't a "choice" to end up gay, so if your kid ends up being gay after being brought up with a homophobic mindset, they'll be miserable with self-hatred and doubt. even in the likely case your kid turns out straight, why would you want them to be a bigot, themselves?
basically, if you plan on actually loving your children, stop being a homophobe.