Mortgage loans……..?

Who does the mortgage lender disburse the loan to. From my understanding, the lender direct deposits the loan into the buyers (borrowers) bank account. Then the buyer cuts the seller a check. Is this correct?
I was not eligible to borrower any funds beyond the asking price. So my mortgage consultant advice me to work out a side deal with the seller. The seller is asking for 40,000. But the consultant said raise the price to 55,000 and let the seller refund the 15,000 to me. So that’s what I did. We (meaning the seller and I) made the purchase agreement for 55,000 and made a side contract (notorized) stating the seller agrees to refund the 15,000 for repairs and rennovations. Even though I have this contract, I am a little skeptical if the seller will follow through without a hassle. Can I arrage it where the lender disburse the 40,000 to the seller and 15,000 to me. What will happen if the lender finds out about our side agreement? Do they really care?

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