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What to Expect

The Home Buying and Refinancing Process

What to Expect, When It Happens, and Why It Matters

Buying or refinancing a home is exciting but it also comes with important steps, documents, and timelines. Understanding what happens behind the scenes can make the experience feel organized and predictable instead of overwhelming.

Here’s a simple breakdown of the process:


Pre-Approval & Loan Application

When it happens:

Before you make an offer (purchase) or at the start of a refinance.

This is where everything begins. You’ll provide income, asset, and credit information so your lender can determine your loan options and price out payments.

For buyers, a strong pre-approval makes your offer more competitive.
For refinances, this step confirms savings, rate options, or cash-out potential.


Loan Estimate (LE)

When you receive it:

Within 3 business days of submitting a completed application.

The Loan Estimate outlines:

  • Interest rate
  • Estimated monthly payment
  • Closing costs
  • Loan terms

This standardized document helps you understand the total cost of your loan upfront and compare options clearly.


Home Inspection (Optional)

When it happens:

Usually within 7–10 days after your offer is accepted.

Missouri does not legally require inspections  but they are highly recommended.

An inspection evaluates the property’s condition, including structure, roof, HVAC, plumbing, and safety items. If issues are discovered, buyers may negotiate repairs or credits.


Appraisal

When it happens:

After you sign initial disclosures and authorize the appraisal typically within the first 2–3 weeks of a purchase contract.

The appraisal determines the home’s fair market value. In Missouri, appraisals must be completed by a state-licensed appraiser.

Why this matters:

  • The lender must confirm the property supports the loan amount.
  • If the value comes in lower than expected, adjustments may be needed.

For refinances, the appraisal determines how much equity you have available.


Title Search & Title Insurance

When it begins:

Shortly after contract acceptance (purchase) or early in the refinance process.

Title Search

A title company reviews public records to confirm:

  • The seller legally owns the property
  • There are no unpaid taxes, liens, or judgments
  • There are no ownership disputes

Title Insurance

Missouri is a title insurance state. At closing, you’ll receive:

  • Owner’s Policy – protects your ownership rights
  • Lender’s Policy – protects the lender’s interest

Title insurance protects against hidden issues such as recording errors, unknown heirs, or undisclosed liens.


Underwriting

When it happens:

After appraisal and documentation are submitted.

This is the lender’s final review of:

  • Income and employment
  • Assets
  • Credit
  • Property value
  • Title work

Additional documentation may be requested. This is normal and part of making sure the loan meets guidelines.


Closing Disclosure (CD)

When you receive it:

At least 3 business days before closing.
(Required by federal law.)

The Closing Disclosure is the final version of your loan terms and exact closing numbers. This mandatory waiting period ensures you have time to review everything before signing.


Closing Day

For Purchases

Typical timeline: 30–45 days after contract acceptance.

On closing day, you’ll sign several key documents specific to Missouri real estate.

Warranty Deed

This document transfers ownership from the seller to you.

Missouri commonly uses a General Warranty Deed, which guarantees the seller has clear ownership and the legal right to transfer the property. This deed is recorded with your county’s Recorder of Deeds office.

Deed of Trust

  • Missouri typically uses a Deed of Trust instead of a traditional mortgage.

This document:

  • Secures the loan using the property as collateral
  • Involves three parties: borrower, lender, and trustee
  • Is recorded with the county

If the loan is not repaid, Missouri law allows the trustee to initiate foreclosure procedures on behalf of the lender.

Special Note for Refinances: Right of Rescission

If you refinance your primary residence, federal law provides a 3-business-day Right of Rescission.

This means:

  • After signing closing documents, you have three business days to cancel the refinance.
  • Loan funds are disbursed after this period expires.

This does not apply to purchase transactions.