The words loots, lutes sound the same but have different meanings and spellings. Why do loots, lutes sound the same even though they are completely different words?
The answer is simple: loots, lutes are homophones of the English language.
Valuables pillaged in time of war; spoils.
Informal Goods illicitly obtained, as by bribery.
Informal Things of value, such as gifts, received on one occasion.
Plural form of lute.
Definitions from The American Heritage® Dictionary of the English Language, 4th Edition, from Wiktionary, Creative Commons Attribution/Share-Alike License and Wordnik.
Homophones (literally "same sound") are usually defined as words that share the same pronunciation, regardless of how they are spelled.