You'll be able to see muscular definition before you lose all the fat. I still have quite a bit of fat to lose and the muscles in my arms and legs "pop" quite a bit. I love to flex my triceps or shoulders and make my husband admire them with me
My calves are awesome and sculpted too, and my butt "perks" visibly when I tighten up my gluteal muscles.
Losing more fat, in essence, just increases the definition of the muscles. But yes, you have to have some muscles to be seen.