While purchasing a house is an exciting endeavor, deed transfers and understanding your new responsibilities can make the process a bit more complicated. Prospective home buyers should learn about warranty deeds as a way to protect themselves and others. 

Learn the answer to “What is a warranty deed?” and the importance of having one as a property owner. If you still have questions after reading or are considering lending options for your mortgage, contact Altitude Home Loans, the best mortgage lenders in Tucson, Arizona.

What Is a Warranty Deed?

Warranty deeds are the contract or documentation that verifies that a property’s seller has their title without any obstacles (liens, mortgages, etc.). It shows that there are no outstanding claims or fights for ownership of the property, verifying the buyer won’t have problems in this area.

Having a warranty deed can help a buyer with mortgage financing and title insurance. The seller becomes responsible if problems arise and they breach their agreed-upon contract. If a buyer purchases a property from a stranger, it’s an excellent idea for them to acquire a warranty deed. 

What Are the Main Types of Warranty Deeds?

The types of warranty deeds you should learn about and may encounter include the following:

• General Warranty Deed. What is a warranty deed? This is the most popular type of warranty deed and provides property owners the highest level of protection. It helps them rest assured, knowing the home has no problems, including those from past owners.
• Special Warranty Deed. Special warranty deeds offer similar protection but do not include title problems before the seller’s ownership. This deed will hold the seller responsible for the time they owned the home but not actions prior to their ownership.
• Statutory Warranty Deed. These are like general warranty deeds, shifting ownership of a property between the seller and the buyer. However, you can obtain one through the state’s statutes, but some of the title history is unclear. It’s still legally binding and offers a fair amount of protection.

While people are looking for more ways to make homeownership more accessible despite today’s challenges, having a warranty deed can help.

How Warranty Deeds Protect Property Owners

Having a warranty deed means you can obtain the title to the property without issues. You’ll also know that you won’t have to face any outstanding title problems. 

Obtaining a warranty deed is possible by contacting your real estate agent’s office or filling out an online template. The deed must have a description of the property, buyer signatures, the transaction date, the names of anyone involved in the process, and any title defects.

Other Related Types of Deeds to Know

Besides warranty deeds, you might hear about some of these related deeds:

• Deed in Lieu
• Quitclaim Deed
• Special Purpose Deed

Receive Guidance on Your Home-Buying Journey with Altitude Home Loans

We hope you now understand “What is a warranty deed?” and have a deeper understanding of deeds while purchasing properties.

Altitude Home Loans can assist you with the mortgage process and answer any other questions you may have. Call us today at 520-500-1010 to get started!

Inflation tends to increase housing prices. The Federal Reserve raises interest rates from time to time to bring inflation down. The Consumer Price Index, a tool to track inflation, jumped 0.4% in September 2022 after a modest increase of 0.1% in August.

As a result, mortgage rates have risen, with the average 30-year fixed rate surpassing 7%. If you’re looking to buy or refinance, Altitude Home Loans is the trusted Mortgage Broker in Tucson, AZ. Call (520) 500-1010 to learn about inflation and house prices from our experienced team.

In this article, we will answer the question, “how does inflation affect housing prices?”

Federal Reserve Rate Hikes Affect Mortgage Rates

Mortgage rate changes depend on many factors, including inflation, real estate markets, and economic growth. In September 2022, the Federal Reserve increased short-term rates by 75 points. The increased rate means credit cards, car loans, and adjustable-rate mortgages come with higher interest rates.

As inflation soars and the Federal Reserve responds by raising interest rates, borrowing becomes substantially more expensive for consumers. According to WalletHub, the average home loan of $402,600, with a 30-year fixed rate, would cost homebuyers $30,600 more in interest. 

Inflation Increases Cost of Homes

Rising interest rates have increased housing market prices. In January 2022, the 30-year mortgage rates averaged around 3.22%. More buyers adjusted their budgets for home shopping in 2022, as their purchasing power dropped by 25%.

Inflation also increases construction and homebuilding costs. The National Association of Home Builders reports that less than 10% of new homes priced under $300,000 were available in April 2022. In comparison, that share was 25% in 2021.

So how does inflation affect housing prices? Both homebuyers and sellers face challenges when inflation increases housing prices. Buyers may experience steeper interest payments on their mortgages, while sellers may have trouble selling before they buy a new home.

How Does Inflation Affect House Prices?

Housing prices often rise during inflation, which is favorable for existing homeowners. The supply of houses for sale is low, while demand from prospective buyers is high. Many homeowners put their homes on the market during inflation to receive offers above market value.

As inflation rises, budgets tend to tighten. For homebuyers, high inflation rates limit their financing options. The mortgage rate is one of the key factors determining whether a person can afford a house. 

During inflation, rent prices increase because buyers cannot afford homes. Advisors recommend that investors hold on to their real estate as a hedge against inflation, as housing prices usually increase over time. 

Give Altitude Home Loans a Call Today

Altitude Home Loans can provide home loans, buying advice, and more information to answer the question “how does inflation affect housing prices?” Our loan officers know which mortgage option will work best based on your unique financial situation. We can let you know the necessary documents for a mortgage refinance to speed up the process. 

Contact Altitude Home Loans in Tucson, AZ, to buy a new home or refinance your mortgage. Call us at (520) 500-1010.