The language of mortgages can be downright confounding. To help you better understand your lender, here are brief descriptions of the terms that are likely to be used by a loan officer:
Appraisal: The lender hires a professional to estimate the value of the home you want to buy. The professional compares the home to those in the neighborhood that resemble it in size, number of rooms, etc., and reports an approximate figure. That amount is used in determining whether you qualify for a mortgage.
Closing costs: At the same time you take title to your new home, you also pay fees and other expenses owed to your lender. These can include points, a title insurance premium, roof and termite inspection fees, and the like. You receive an estimate of the amount due before closing and often a final figure just before the closing date.