Q1. A Missouri homeowner is refinancing their mortgage and the lender requires an appraisal to verify the property value. According to Missouri Real Estate Commission standards, why is this appraisal necessary before approving the refinance?

• ○To ensure the property’s market value supports the loan amount and protects the lender’s interest.
• ○To determine the homeowner’s creditworthiness based on property condition.
• ○To establish the borrower’s income level for loan qualification.
• ○To verify the borrower’s identity and residency status in Missouri.