Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Quitclaim Deed or Warranty Deed for Mortgage Company?

Posted on: 01st Apr, 2012 05:37 am
My parents have a property, free and clear, and want to transfer the ownership to me, due to their ages (both in mid 80's). By searching this forum, I see that we can do this simply and economically by means of Quitclaim Deed.

Now, if I want to borrow money against this house in the future, do lenders prefer one form of deed over the other?

If yes, we want to use the form of deed preferred by lenders.

Also, any comments, hints, precautions, and/or your experience you can share regarding this subject would be appreciated.
Hi centurian,

As the property is free and clear, I will suggest your parents to use a warranty deed in order to transfer the property to you. They can contact a real estate attorney and he will help them in drafting the deed.

Thanks
Posted on: 01st Apr, 2012 08:16 pm
Thanks for your reply.

We are tyring to do it ourselves. We called around and lawyers charge $400 to $500 just filling out spaces on their blank form they have.
So either we can buy one online for $10 - $20 or I can type it up by copying my parents' deed word for word (I think they have warranty deed-fee simple)
So, do you know if lender prefers warranty deed over quitclaim deed?
Posted on: 02nd Apr, 2012 05:34 pm
Hi centurian!

Welcome to forums!

A warranty deed is always preferred by the lender as it is a proof that the property is free and clear from any other liens.

Feel free to ask if you've further queries.

Sussane
Posted on: 02nd Apr, 2012 09:02 pm
Thanks Sussane,
That answers my question.
Posted on: 04th Apr, 2012 05:30 am
You're welcome, centurian!!
Posted on: 04th Apr, 2012 11:10 pm
Page loaded in 0.079 seconds.