When you apply for a mortgage, several things happen. Your lender will get an appraisal. The appraisal will determine the market value of your new home, which will be used as collateral for your loan. You'll be charged a fee for this service; it will likely be included in your closing costs.

After you apply for a mortgage, your lender will work with you to determine a settlement date. You may also want to lock in an interest rate at this time.