BRRRR question... funding

[Richard McCaig II]

New guy here looking to get into my first rental and a thought popped into my mind that I have no answer for.

The house I am looking at is $110,000. I am planning on using 20k to update the house. When I get a mortgage loan and we're at closing, do I just tell my agent whats happening and they'll have the check of 20k ready for me, and the rest of the money would just go to the old owner? Basically my mind doesn't know or understand how I would get my rehab money as I've never rented before and usually at closing all of the money goes to the seller...

Sorry for the basic question. Thanks for your help!