In this paper, we use the parabolized stability equations (PSEs) to investigate heat effects on supersonic jet screech. The PSE is derived from the linear Euler equations, and the computations are performed on an empirical mean flow profile. Employing PSE, we can examine several important characteristics of the shear-layer instability waves, including the convection velocity, the growth rate, and the location where the instability waves attain the maximal total amplification. Equipped with these knowledge, we further explore their impacts on the jet screech. Specifically, using a newly proposed iteration scheme, we first identify a more suitable convective Mach number to predict the screech frequency in both heated and cold jets. Second, we find that the transition of the screech mode from the axisymmetric to the helical mode may be explained by the shift in the most amplified instability modes. Using this criterion, we can predict a transition Mach number for the mode staging. Third, by assuming that the effective source location is the position where the instability wave attains its maximal amplitude and using the newly obtained convective Mach number, we can predict the screech mode staging in cold and heated jets using Gao's model. The predictions agree well with the experimental data. Finally, we investigate the heat effects on screech amplitude. It is found that compared to cold jets, the difference between the frequency of the most amplified instability wave and the frequency of the jet screech is much bigger in heated jets, which may lead to a lower screech amplitude.