Thinking about buying a house in Troy, MO but not sure where to start? You’re not alone. Between financing, inspections, wells and septic, and contract timelines, it can feel like a lot. This guide walks you through each step with practical, local tips so you can move from browsing to closing with confidence. Let’s dive in.
Troy, MO at a glance
Troy and greater Lincoln County offer a mix of in-town neighborhoods, new subdivisions, and semi-rural properties on acreage. You’ll find homes on municipal water and sewer inside city limits, and many just outside town that use private wells and septic systems. Each property type comes with different maintenance and inspection needs.
Market conditions change often in Troy and Lincoln County. Before you make an offer, ask your agent for current MLS data on median prices, days on market, and inventory. That way you can shape your offer strategy to today’s realities, not last month’s.
Step-by-step buying timeline
1) Get pre-approved (1–7 days)
A full lender pre-approval sets your budget and strengthens your offer. Share income, assets, and credit documents so your lender can issue a letter. If you plan to use FHA, VA, USDA, conventional, or Missouri Housing Development Commission programs, confirm which fits best.
2) Prepare your budget (1–14 days)
Collect proof of funds for your down payment and closing costs. Ask your lender for a Loan Estimate so you understand rates, fees, and reserves. If you want to check your credit, do it early.
3) Search and tour (weeks to months)
Tour homes that match your needs for commute, amenities, and utilities. In a competitive week, be ready to move fast on new listings. If you want more choices, allow time for new inventory to hit the market.
4) From offer to acceptance (1–7 days)
Your offer will include price, earnest money, inspection period, financing type, closing date, and any contingencies. In Missouri, earnest money typically goes to a title company or escrow agent and is credited back to you at closing.
5) Inspection and due diligence (5–14 days typical)
Schedule a general home inspection plus any specialty checks your property needs. In many deals, 7–10 days is common for the inspection window. Use this time to assess condition, request repairs or credits, or cancel within the contingency if needed.
6) Appraisal and underwriting (7–30+ days)
If you’re financing, your lender orders the appraisal. Appraisals often take one to two weeks, then underwriting usually needs two to four weeks to clear conditions. Timelines depend on lender capacity and the complexity of your file.
7) Title work and insurance (runs alongside underwriting)
Your title company completes the title search and issues a title commitment. Review any easements, covenants, or exceptions and consider a survey, especially for rural parcels. Owner’s title insurance is recommended for protection from title defects.
8) Closing day
You’ll sign documents, bring your closing funds, and receive keys on the agreed possession date. The title company records the deed and disburses funds after both sides sign and the file is balanced.
Local checks that protect your budget
Utilities and services
Ask whether the home is on municipal water and sewer or on a private well and septic. For rural properties, confirm electricity and natural gas service, and plan for propane if needed. Check internet options since speeds and availability vary outside city limits.
Wells and septic
For homes with private systems, plan for extra due diligence:
- Well: test for bacteria and nitrates, and confirm pump condition and well depth.
- Septic: schedule a full septic inspection, review any permit records, and ask for proof of pumping and maintenance.
Floodplain and environmental risks
Review FEMA flood maps for the property’s flood zone. Your lender may require flood insurance for certain zones. Missouri also has areas with elevated radon. A radon test is recommended for most homes.
Permits and records
If a home shows recent work like additions, decks, or pools, verify permits with the City of Troy or Lincoln County offices. Ask about recorded easements with the county’s recorder of deeds and confirm property tax history with the county assessor.
Schools and commute
School assignment can affect resale desirability. Verify the specific school assignment for the property address. Also consider access to the US‑61 corridor and your commute pattern to the St. Louis metro.
What to expect in a Missouri contract
Missouri purchase contracts outline price and terms, plus protections for your financing and inspections. Common items include:
- Earnest money deposit amount and where it is held
- Inspection contingency with a defined timeline and process
- Financing contingency with a deadline
- Appraisal contingency if the valuation is below contract price
- Title and survey review timelines
- Possession date and any rent-back terms
- Seller disclosures and delivery deadlines
- Prorations for taxes, utilities, and any HOA fees
Clarify default terms and what happens to earnest money if either party fails to perform. Ask your agent to explain each deadline so nothing slips.
Inspections to prioritize in Troy
Your inspector set may vary by property type. In Troy and Lincoln County, many buyers include:
- General home inspection for structure and systems
- Roof assessment for age and remaining life
- HVAC, electrical, and plumbing evaluations
- Termite and wood-destroying insect inspection
- Septic inspection and pump-out for non-municipal sewer
- Well inspection and certified water testing
- Radon testing (short-term tests are common)
- Lead-based paint disclosure review and optional risk assessment for homes built before 1978
- Flood risk review and elevation certificate if needed for insurance
- Boundary survey if lines, access, or encroachments are uncertain
Attend the inspection if you can. You’ll learn how systems work and what to budget for in the first year.
Working with lenders, inspectors, and title pros
Lenders
Choose a lender with Missouri and Lincoln County experience. Ask about loan programs that fit your profile, including MHDC first-time options and possible USDA eligibility for rural homes. Request a Loan Estimate within three business days of application, ask about typical closing timelines, and confirm rate lock terms.
Inspectors and specialists
Hire licensed or certified inspectors who know rural systems if you are outside city limits. Ask for a sample report, references, and what specialty contractors they recommend for septic, wells, radon, or structural concerns.
Title companies and closing attorneys
Use a title company with local closing experience. Ask them to walk you through title commitment exceptions, what owner’s title insurance covers, and how earnest money is handled if a deal cancels under a contingency.
How to vet your team
- Verify licensing and insurance
- Ask for recent local client examples
- Compare fees and scope of work
- Confirm scheduling and turnaround to match your contract deadlines
Cost planning: earnest money and closing costs
There is no universal earnest money amount. Your agent will suggest a number that shows commitment without overexposure based on price and local norms. Earnest money is typically held by the title company and credited back to you at closing per the contract.
As a rule of thumb, plan for buyer closing costs around 2 to 5 percent of the purchase price. Costs vary by loan type and price. Expect lender fees, title fees, prepaids for taxes and insurance, and optional owner’s title insurance. Ask your lender and title company for itemized estimates so you can compare.
Property taxes in Missouri are assessed and collected at the county level. In Lincoln County, you can request a tax history from the assessor. At closing, taxes are usually prorated so the seller pays through the closing date and you pay after.
Smart touring and offer tips
- Confirm utility type before touring, especially well and septic.
- Ask about age and service history of roof, HVAC, and water heater.
- Review permit history for recent projects like decks, additions, or pools.
- Check flood maps and consider radon testing early.
- When you find a match, move fast with your pre-approval letter and a clear inspection plan.
Your next steps
- Get fully pre-approved with a Missouri lender familiar with FHA, VA, USDA, MHDC, and conventional options.
- Team up with a local agent who knows Troy’s in-town and rural nuances.
- Tour homes that match your commute, school assignment, and utility needs.
- Once under contract, order general, termite, and radon inspections right away, plus well and septic tests if applicable.
- Coordinate appraisal, underwriting, title work, and insurance. Review surveys for rural or boundary-sensitive properties.
Ready to start? Reach out to a local team that combines neighborhood knowledge with a strong partner network. Connect with Tim Koppel and the Reed-Koppel Collective to build your plan and shop with confidence.
FAQs
What should first-time buyers know about financing in Troy?
- Get a full pre-approval before touring, ask lenders to compare FHA, VA, USDA, MHDC, and conventional options, and request a Loan Estimate to review rates and fees.
How long does it take to close on a home in Troy, MO?
- Many financed purchases close in about 30 to 45 days from contract acceptance, while cash deals can close faster depending on title work and inspections.
Do I need special inspections for rural Troy properties?
- Yes, plan for well and septic inspections, water quality testing, a termite check, and consider a boundary survey along with a general home inspection.
How much are buyer closing costs in Missouri?
- Closing costs vary, but a common range is 2 to 5 percent of the purchase price; request itemized estimates from your lender and title company early.
What happens if the inspection finds issues?
- You typically request repairs or credits within your inspection window; the seller can agree, counter, or refuse, and you may cancel under the contingency if unresolved.
How do property taxes work in Lincoln County?
- Taxes are assessed at the county level and usually prorated at closing, so the seller pays through the closing date and you pay after; ask the county assessor for a tax history.
